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Here at PropNotes, we're mostly focused on a combination of capital appreciation and income, typically through a
Blackstone Secured Lending: Is This 10% Yield Sustainable?
Summary
- Blackstone Secured Lending runs a high-quality portfolio with low leverage, solid assets, and a low cost of capital.
- This BDC's focus on Senior Lien secured loans should provide safe harbor in economic storms, and management is using a conservative amount of leverage.
- Despite these advantages, BXSL's premium to Fair Value and exposure to floating rate debt make it a suboptimal choice as we sit on the precipice of a rate cut cycle.
- We rate BXSL a 'Hold'.
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