Trinity Capital: A 13%+ Yielder With Excellent Portfolio Management

We Are Trinity Capital (NASDAQ:TRIN) is a well-managed BDC with an attractive dividend yield of more than 13%. However, in recent quarters, I have increasingly been concerned about the risk of deteriorating portfolio quality at TRIN and other BDCs. As of my last analysis during the run-up to the fourth quarter of 2023 earnings report, there was a marked increase in the portion of the portfolio placed on the watch list at TRIN—a sign that these investments might be inching closer to default. Specifically ...