GBDC - Barings BDC: This 11.4% Yielding BDC Looks Like A Future Superstar
2024-03-30 07:00:00 ET
Summary
- Barings BDC has the potential to become a future superstar in the BDC sector with a strong balance sheet with no debt maturities until 2025.
- BBDC has a strong credit quality and avoids sectors prone to economic volatility. Their non-accruals are also low, which is a testament to their strong management team.
- The company has reported decent financials, strong dividend coverage, and repurchased a substantial amount of shares, taking advantage of the BDC's discount to NAV.
- Additionally, they approved an additional repurchase program worth $30 million for 2024.
- Despite the strong year, they did see a significant rise in PIK income, which could be a potential risk going forward for the BDC.
Introduction
When you think of superstars in certain sectors whether it be tech, real estate investment trusts, or business development companies, there are certain names that instantly come to the minds of investors. And while those investments are great, finding those with the makings of a future superstar are always better because they normally trade at more attractive valuations....
Barings BDC: This 11.4% Yielding BDC Looks Like A Future Superstar