PennantPark: A Smart Investment To Avoid Recessionary Headwinds

Komal Sarwar
1.68K Followers

Summary

  • In 2023, PennantPark Investment Corporation is poised to outperform market volatility and provide investors with healthy cash returns.
  • Because of its floating-natured portfolio, the company's business model benefits from high rates and tight market conditions.
  • Its strategy of providing first-lien loans to core middle-market companies with high EBITDA growth reduces the risk of loss ratio.
  • Increasing investments in high-yielding assets, expanding stake in PSLF joint venture, and rotating out of equity stakes would improve its earnings growth quality in the long run.

High Yield, Low Risk Road Sign

JamesBrey

As a potential recession and high-interest rates could make 2023 another difficult year for stock market investors, it makes sense to buy stocks like PennantPark Investment Corporation (NYSE:PNNT) to lower portfolio volatility and earn returns that outperform the

This article was written by

1.68K Followers
Komal is passionate about finance and the stock market. She enjoys forecasting future market trends using a fundamental and technical approach with a focus on both short- and long-term horizons. She intends to provide unbiased analysis to assist investors in selecting the best investment strategies to stay ahead of the market.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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