TCPC - BlackRock TCP Capital: Still A Suboptimal BDC Pick After Q1 Results

2024-06-09 02:04:37 ET

Summary

• Since the publication of my conservative article in March this year, BlackRock TCP Capital Corp has slightly outperformed the BDC index.
• The outperformance was driven by the combination of relatively decent Q1 results but to a larger extent by the improved macro environment for BDCs.
• The improvements on the macro end have benefited more BDCs that carry larger betas (i.e., which are not that defensive) like TCPC.
• If we peel back the onion a bit, we will notice that not all Q1 data points are positive.
• In this article, I elaborate more on why, after Q1 2024 earnings report, I still recommend avoiding this BDC.

In March this year, I issued an article about BlackRock TCP Capital Corp ( TCPC ) downgrading the BDC from buy to hold due to suboptimal Q4 results and the signs of negative fundamental momentum going forward....

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