TSLX - Sixth Street Lending Q4: Smooth Sailing For This 10% Yielding BDC
2024-02-21 10:09:29 ET
Summary
- Sixth Street Lending focuses on First Lien debt origination and had a strong fourth quarter with high net investment fundings.
- The stock is currently overvalued based on net asset value, leading to a Hold rating.
- The company provides a safe 10% yield, but there are better yield choices and the floating-rate focus is no longer a good reason to invest.
Sixth Street Lending Inc. ( TSLX ) is a well-managed business development company with a strong focus on First Lien debt origination. Sixth Street Lending released results for its 2023 financial year on February 15, 2023.
The BDC covered its dividend with adjusted net investment income in the fourth quarter, but Sixth Street Lending’s high valuation based on net asset value only leads to the continuance of my Hold rating....
Sixth Street Lending Q4: Smooth Sailing For This 10% Yielding BDC