- We discuss Q1 results from ARCC and highlight key income dynamics of the portfolio.
- The market rewarded the Q1 release with a 9% drop in the stock's price.
- The internals of the release are actually quite strong - with one of the highest NII levels over the last 2 years and a rise in the NAV.
- The company's income has just started to benefit from the rise in short-term rates and we expect Q2 numbers to reflect this dynamic.
- At a valuation of 104-107% ARCC looks an attractive hold in the BDC sector.
For further details see:
ARCC: Q1 Numbers Look Better Than Market's Reaction