GSBD - Goldman Sachs BDC: It Has Headwinds To Navigate

2024-03-19 05:03:03 ET

Summary

• Goldman Sachs BDC focuses on direct lending and targets U.S. middle-market first-lien loans.
• The fund's portfolio shows questionable fundamental metrics, but its sector diversification helps mitigate risks.
• The changing interest rate and credit spread environment may negatively impact the fund's performance in the coming quarters.
• As shown before, GSBD's dividend saves the day, phasing out various price-based risks.
• Hold rating assigned.

This article focuses on Goldman Sachs BDC ( GSBD ) , a Goldman Sachs Group ( GS ) entity that deals with direct lending. Global credit markets are heating up as volatile interest rates and credit spreads have coalesced, creating a speculative environment. As such, we decided to communicate our latest findings on Goldman Sachs BDC....

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