BDC Weekly Review: Tax-Loss Season Is Approaching

Nov. 16, 2024 1:50 AM ETTSLX, FDUS, TPVG, PSEC, HRZN, TCPC, OCSL, GSBD, NMFC, CSWC, OBDE, OBDC
(5min)

Summary

  • We take a look at the action in business development companies through the second week of November and highlight some of the key themes we are watching.
  • BDCs saw a 2% aggregate return on the week; TPVG surged nearly 20%, while PSEC dropped due to a bad quarter and distribution cut.
  • Tax-loss season may pressure some securities; PSEC, HRZN, TPVG, TCPC, OCSL, GSBD, NMFC, and CSWC could weaken further by year-end.
  • Blue Owl BDCs OBDE and OBDC had decent Q3s with 2.2-2.3% NAV returns; Sixth Street Specialty Lending saw a 2.7% return.
  • I do much more than just articles at Systematic Income: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

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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 broader market.

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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.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of FDUS 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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SymbolLast Price% Chg
TSLX--
Sixth Street Specialty Lending, Inc.
FDUS--
Fidus Investment
TPVG--
TriplePoint Venture Growth
PSEC--
Prospect Capital Corporation
HRZN--
Horizon Technology Finance

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