BXSL - Blackstone Secured Lending: Secure And Ready To Rumble

2024-05-15 08:02:09 ET

Summary

• Lower implied interest rates probably won't wreck Blackstone Secured Lending Fund's prospects.
• The vehicle's credit risk retention and possible steepening of the yield curve provides a bullish case for asset-level yields.
• Liability-level interest might settle lower if interest rates fall.
• BXSL's dividend data suggests it is a "throughout the cycle" income-generating investment.
• Valuation multiples and an uncertain economic environment are key risks. However, we are net bullish on this net investment income machine.

Today's article focuses on one of the most talked-about business development companies, Blackstone Secured Lending Fund (NYSE: BXSL ) . The fund, which primarily provides variable-rate first-lien loans and internal credit enhancement, has surged in the past year due to various factors. However, interest rates have been salient to Blackstone Secured Lending Fund's recent performance, meaning the uncertain monetary policy outlook poses a few challenges....

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