BBDC - Barings BDC: Quality On The Inside 'Junky' On The Yield
- Barings BDC has a quality loan portfolio with some riskier assets to back that 9.08% dividend yield.
- The Sierra Income Corporation merger will not change the asset quality mixture, although $16 million of non-accruals have already emerged.
- The credit support agreements, conditional share repurchase plans, and management compensation increase amendment point to an increased degree of interest alignment between management and shareholders.
- Barings BDC is what I call a "stockbond", due to its high but safe dividend and its quality loan portfolio.
For further details see:
Barings BDC: Quality On The Inside, 'Junky' On The Yield