Palmer Square Capital Bdc Stock Earnings Reports

Palmer Square Capital BDC reported Q1 2026 results with $109.4M of capital deployed, total investment income of $26.2M and net investment income (NII) of $11.0M ($0.35 per share). The Board declared a Q2 base dividend of $0.36 and expects to continue quarterly supplemental distributions; the Q1 total dividend paid was $0.37 (yielding 11.1% on NAV and 13.5% on market price as of 4/30/26). NAV per share was $13.30 at March month-end (down from $14.85 YE‑2025), driven by mark-to-market declines—primarily in software/technology credits—but management stresses these marks are based on actionable market prices and third‑party valuation inputs. Portfolio highlights: fair value ≈ $1.15B across 44 industries; 96% senior secured; weighted average yield to maturity (fair value) 11.73%; low nonaccruals (<1 bp fair value, 90 bp at cost); average hold size ~$4.4M; top 10 positions ≈10.6% of portfolio. Liquidity was ~$325M (cash + undrawn facilities); debt/equity was 1.7x at quarter-end. Management noted increased market activity beginning in April (more refinancing and new-issue flow, wider spreads than recent tight levels), continued focus on deeply embedded mission‑critical software (expected beneficiaries of AI), disciplined deployment vs. share repurchases (company repurchased shares during the quarter and manager bought additional shares), and that CLO issued in 2024 exits noncall in July 2026 (refinancing options being evaluated). Overall positioning: cautious but constructive—seeking to capitalize on improved risk-adjusted opportunities while maintaining conservative credit and liquidity management.