Sixth Street Specialty Lending: An 8.7% Dividend Worth Considering
Sixth Street Specialty Lending(TSLX) Seeking Alpha·2024-07-16 22:34
Darrin Hughes/iStock via Getty Images Business development companies often invest in middle-market business debt. These are companies that are too small to make offerings on the bond markets but too large for a typical business loan. The typical loan that a BDC makes yields about prime plus 2 - 3%. On the liabilities side, BDCs use leverage to earn more, and the debt that BDCs incur is typically in the form of a bond, note, or baby bond. By law, BDCs are required to stay below a debt-to-equity ratio of 2. H ...