- We discuss Q1 results for the business development company ("BDC") TCPC.
- TCPC has been our second highest BDC allocation - it has outperformed the sector by 7.5% so far year-to-date.
- Q1 income jumped, and dividend coverage increased to 114%, raising the likelihood of a future dividend hike.
- Non-accruals remain well below the sector average, and TCPC is among the best positioned to take advantage of rising short-term rates.
- With significant outperformance recently and valuation converging with the sector, we switch our rating for TCPC to "Hold" from "Buy."
For further details see:
BlackRock TCP Q1 Update: Income Jumps, Valuation Converges With Sector