2024-03-12 21:47:03 ET
Summary
- Barings BDC delivered stable Q4 results with unchanged key performance metrics and a slight increase in NAV.
- There are some concerns remaining about the ability to sustain dividends due to a declining asset base and potential consequences from debt refinancing.
- Moreover, the portfolio has a high exposure to secured investments, which elevates the risk profile even further.
- In the context of this, the current dividend payout ratio of 85% is too aggressive.
In December last year, I issued a relatively bearish article on Barings BDC ( BBDC ) despite the fact that it carries quite many fundamentally sound characteristics....
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For further details see:
Barings BDC: Still Too Thin Margin Of Safety To Go Long