CGBD - Carlyle Secured Lending: A Clear Buy After Q1 2024 Earnings Report

2024-05-26 11:55:19 ET

Summary

• Carlyle Secured Lending (CGBD) delivered a solid Q1, 2024 report, which reveals some interesting dynamics.
• While on the surface we might conclude that the results were weaker, if we adjust for the extraordinary items, we will notice still a resilient cash generation.
• It seems that deal activity has finally picked up for CGBD, which should contribute to a net investment growth from here, especially considering the conservative underwriting policy.
• The dividend remains well-covered and the implied yield is circa 11%, which is attractive enough to go long CGBD.

At the start of 2024, I wrote a relatively bearish article on Carlyle Secured Lending (NASDAQ: CGBD ), where the message was to avoid the BDC despite the attractive fundamentals....

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