BDC Weekly Review: Yield Myopia Ignores The Right Metrics

Aug. 16, 2024 11:34 PM ET, , , , , 13 Comments
(7min)

Summary

  • We take a look at the action in business development companies through the second week of August and highlight some of the key themes we are watching.
  • BDCs underperformed with a total return of -2% due to poor quarterly results or dividend cuts.
  • TriplePoint Venture Growth highlights the disconnect between dividend yield and total NAV return.
  • Carlyle Secured Lending delivered a decent quarter, with non-accruals below median levels and preferred conversion at NAV.

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Welcome to another installment of our BDC Market Weekly Review, where we discuss market activity in the Business Development Company ("BDC") sector from both the bottom-up - highlighting individual news and events - as well as the top-down - providing an overview of the

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This article was written by

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ADS Analytics is a team of analysts with experience in research and trading departments at several industry-leading global investment banks. They focus on generating income ideas from a range of security types including: CEFs, ETFs and mutual funds, BDCs as well as individual preferred stocks and baby bonds.

ADS Analytics runs the investing group Systematic Income which features 3 different portfolios for a range of yield targets as well interactive tools for investors, daily updates and a vibrant community.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of OBDE, BCSF, BBDC, OBDC either through stock ownership, options, or other derivatives. 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.

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