The Fed's recent decision to cut the base rates by 50 basis points has created more problems for BDCs, especially for those with weaker portfolios. Lower base rates, inactive M&A markets and higher ec

The Best BDC To Buy For Fed Rate Cuts

07:05am, Thursday, 26'th Sep 2024
The Federal Reserve's 50 basis point rate cut impacts BDCs, which are sensitive to short-term rate changes, affecting their net investment income. BDCs thrive during rate hikes but face challenges wit
Oaktree Specialty Lending: Excess Software Lending May Compound 'Value Trap' Risk
This is not the right time to take high risk in the BDC space. Yet, as it is often the case, a challenging environment creates opportunities. In this article, I elaborate on two BDCs which indeed have

Dividend Cut Alert: Bad News For BDCs

07:05am, Thursday, 05'th Sep 2024
BDCs have outperformed REITs since early 2022 due to rising short-term interest rates and a strong economy, but dynamics shifted in July. With long-term rates declining and recession fears rising, BDC
The BDC sector faces headwinds such as spread compression, potential Fed rate cuts, and increased corporate distress. Despite these challenges, BDC market indices like VanEck BDC Income ETF and Putnam
Oaktree Specialty Lending had a disappointing quarter with a drop in NAV and investment income, but still eked out a positive total NAV return. The management fee was reduced permanently to 1%, which
The recent BDC market dynamics indicate that quality will play an important role over the foreseeable future. Looking at the recent quarterly earnings data that have been published by many BDCs, we ca

Oaktree Specialty Lending: Risky 13% Yield

08:56pm, Sunday, 25'th Aug 2024
Oaktree Specialty Lending Corporation's credit profile deteriorated, leading to risks to the dividend. The company barely covered its dividend with net investment income, leading to a potential divide
One of the most critical events in the history of finance happened back in 1990. It was the culmination of a transformative two-decade journey that forever changed the way companies are financed.
Oaktree Specialty Lending is dealing with loan performance issues and a rising non-accrual percentage. Despite challenges, the BDC is focusing on a first-lien strategy to strengthen its portfolio and

Big Dividends From A Recession-Resistant Portfolio

05:27pm, Wednesday, 07'th Aug 2024
There are growing risks of a recession hitting due to weakening job numbers, rising unemployment, and weakening consumer spending capacity. We share a portfolio of high-yield stocks that should be abl

Very Bad News For BDCs

11:30am, Tuesday, 06'th Aug 2024
The BDC sector is now in a correction. It also faces numerous significant headwinds. We share our outlook on and approach to the sector moving forward.
OCSL has been my absolute worst performing BDC pick. After the previous earnings release, I was still optimistic and recommended a buy, considering the positive net funding volumes and decreasing non-
The headline numbers for Oaktree Specialty Lending (OCSL) give insight into how the company performed in the quarter ended June 2024, but it may be worthwhile to compare some of its key metrics to Wal
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