- BKCC's discount to NAV tightened to levels seen before the pandemic, lowering the chances of positive risk-adjusted capital gains.
- There is a possibility that NAVPS will increase in the short term as a result of the reversal of write-downs implemented previously to incorporate COVID-19 outbreak disruptions.
- Still, in the medium term, I believe that revenue and NAV will decrease as part of a portfolio recalibration plan that entails reallocating assets to lower risk/return investments.
- Dividend is completely covered by net investment income, and in my opinion, it is safe at least for the next twelve months, providing investors with 14% yield.
For further details see:
BlackRock Capital Investment: Know When To Fold'em