BCSF - Bain Capital Specialty Finance: Opportunity To Get Shares At A Discount
2024-05-14 11:34:24 ET
Summary
- Bain Capital Specialty Finance is a high-quality Business Development Company that trades at a discount to its net asset value.
- BCSF's portfolio is well-diversified across different industries and mainly focused on North America, with a weighted average portfolio yield at fair value of 13%.
- BCSF offers a 10% dividend yield and has a strong net investment income cushion, making it an attractive investment for high income seekers.
- The portfolio consists of mainly 1st lien senior debt and the non-accrual rate remains low at 1%.
Overview
Within the Business Development Company sector, there are tons of high-quality options to choose from. However, they tend to often times trade at a significant premium to their actual net asset value as investors pile in because of the quality offered. This can make it difficult to find a deal within BDCs, and this has been especially challenging in this higher interest rate environment. BDCs typically have a portfolio full of floating rate debt that's able to utilize the current high-interest rate environment as a way to pull in higher levels of income than ever before....
Bain Capital Specialty Finance: Opportunity To Get Shares At A Discount