GAIN - Sixth Street Specialty Lending: Trades At A Premium To Nav Due To High Quality

2024-02-10 00:23:34 ET

Summary

• This BDC offers a high dividend yield of 8.6% that is well-covered by NII (net investment income). A raise is likely to be announced soon.
• TSLX outperformed the VanEck BDC Income ETF and the S&P 500 in total return over the last ten years.
• TSLX's portfolio is diversified across multiple sectors and primarily focuses on financing middle-market companies in the US.
• Shares currently trade at a premium to NAV, but this is likely due to the consistent performance and strong cash flow.

Overview

While my portfolio is already heavy-weighted with BDCs (business development companies), I continue to get pulled in by the appeal of these high yielding opportunities. TSLX has a solid performance history and juicy high yield of 8.6%. Sixth Street Specialty Lending (TSLX) operates as a business development company, offering a diverse range of financial services. The firm specializes in providing various types of loans, including senior secured loans such as first-lien and second-lien, along with unsecured loans, and investments in corporate bonds and equity securities....

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