SLRC - SLR Investment: Things Have Changed It Is Time To Buy This BDC
2024-04-22 10:36:11 ET
Summary
- SLR Investment's exposure to high volatility sectors and fixed rate loans has limited its upside and caused underperformance relative to the BDC sector so far.
- SLR Investment's Q4 2023 earnings showed improvements in core performance metrics, with net asset value increasing and net investment income expanding.
- Also, the recent dynamics at the general private credit front (e.g., higher for longer impacts, increasing competition) have rendered SLRC's asset allocation strategy more enticing.
- Given the above, very high portfolio quality and a notable discount to NAV, I have decided to upgrade the BDC from hold to buy.
In December of last year, I wrote an interesting piece on SLR Investment Corp. ( SLRC ) , where I laid out several advantages of SLRC and how these should warrant a somewhat stable performance going forward....
SLR Investment: Things Have Changed, It Is Time To Buy This BDC