BBDC - Barings BDC: Still Too Thin Margin Of Safety To Go Long

2024-03-12 21:47:03 ET

Summary

• Barings BDC delivered stable Q4 results with unchanged key performance metrics and a slight increase in NAV.
• There are some concerns remaining about the ability to sustain dividends due to a declining asset base and potential consequences from debt refinancing.
• Moreover, the portfolio has a high exposure to secured investments, which elevates the risk profile even further.
• In the context of this, the current dividend payout ratio of 85% is too aggressive.

In December last year, I issued a relatively bearish article on Barings BDC ( BBDC ) despite the fact that it carries quite many fundamentally sound characteristics....

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