Golub Capital BDC (GBDC) recently reported year end results and missed projected EPS of $0.33 by $0.02 and was just short of covering dividends. Currently GBDC is the smallest component in my "General BDC Portfolio" and is considered one of the safest BDCs of the 25 that I cover. Many of the 'safer' BDCs have been short of covering dividends due to yield compression in the industry and inappropriate use of leverage, driving lower portfolio returns especially for senior debt investments. This article will discuss why GBDC missed earnings estimates and was not able to cover dividends as well as what the company needs to do in the coming quarters to improve results.
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