2024-04-05 08:30:00 ET
Summary
- Blackstone Secured Lending Fund has delivered a 1-year total return of almost 40%, underpinned by a higher-quality portfolio composition.
- BXSL may face scrutiny on its net investment income per share accretion in 2024 as interest rates have likely peaked.
- The Fund's high quality should demand a valuation premium. However, it isn't immune to economic downturn risks.
- As BXSL's valuation normalized after last year's battering, the risk/reward is increasingly unattractive.
- I argue why investors shouldn't rush into BXSL at the current levels.
A bullish investment thesis on Blackstone Secured Lending Fund ( BXSL ) is simple. The externally managed business development company or BDC has access to the scale, originations capabilities, and expertise of the world's leading alternative asset manager in Blackstone ( BX ). With that pedigree, BXSL investors likely have the assurance of its credible deal-making and risk-management prowess within the ambit of Blackstone's credit and insurance business....
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Blackstone Secured Lending: High-Quality BDC Deserves Its Outperformance