Two BDCs For 60 Cents On The Dollar: 1 To Buy And 1 To Avoid

Apr. 17, 2025 9:15 AM ET, , , , 20 Comments
Roberts Berzins, CFA
10.03K Followers
(10min)

Summary

  • BDCs have gone through a notable repricing.
  • Some of them are trading now at a deep discount territory.
  • These deep discounts enhance the risk-to-reward ratios, especially for those who have been unfairly punished.
  • In this article, I discuss two BDCs, which are priced at ~60 cents on the dollar. One of them is a buy, and the other one remains an unattractive choice.

Gold and Currency

GeorgePeters

When the risks in the system go up, high-return and high-yield asset prices tend to go down. The logic behind this is simple: as investors try to hide against the walls of robust and truly defensive securities/businesses, the offense component becomes automatically

This article was written by

10.03K Followers
Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of CION 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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