2024-06-09 02:04:37 ET
Summary
- Since the publication of my conservative article in March this year, BlackRock TCP Capital Corp has slightly outperformed the BDC index.
- The outperformance was driven by the combination of relatively decent Q1 results but to a larger extent by the improved macro environment for BDCs.
- The improvements on the macro end have benefited more BDCs that carry larger betas (i.e., which are not that defensive) like TCPC.
- If we peel back the onion a bit, we will notice that not all Q1 data points are positive.
- In this article, I elaborate more on why, after Q1 2024 earnings report, I still recommend avoiding this BDC.
In March this year, I issued an article about BlackRock TCP Capital Corp ( TCPC ) downgrading the BDC from buy to hold due to suboptimal Q4 results and the signs of negative fundamental momentum going forward....
Read the full article on Seeking Alpha
For further details see:
BlackRock TCP Capital: Still A Suboptimal BDC Pick After Q1 Results