2024-02-25 04:20:15 ET
Summary
- Crescent Capital has underperformed the broader BDC market by roughly 530 basis points since the date of my relatively bearish article back in late December 2023.
- At the same time, the BDC has maintained positive momentum in generating cash and has seen growth in NII despite challenging market conditions.
- It has also improved its leverage, carrying a favorable debt maturity profile, which allows it to benefit from below market level interest rates.
- In this article, I elaborate in more detail on the key underlying drivers behind my buy thesis (i.e., why I am upgrading the rating).
Right before we entered 2024, I issued a relatively bearish article on Crescent Capital BDC ( CCAP ) despite the favorable tailwinds for BDCs across the board (e.g., high SOFR, low corporate default levels, decent outlook on the investment activity)....
Read the full article on Seeking Alpha
For further details see:
Crescent Capital: Q4 Earning And Price Divergence Make This A Buy Now