2024-04-17 07:00:00 ET
Summary
- Crescent Capital BDC has shown strong earnings growth, with net investment income and total investment income increasing quarter-over-quarter.
- The company has also demonstrated healthy NAV growth, out-earning its dividend and seeing a 1.7% increase in NAV quarter-over-quarter.
- Despite its performance, Crescent Capital still trades at a 15% discount to NAV, presenting a buying opportunity for income investors.
- Yielding nearly 10%, Crescent Capital had average dividend coverage of 122% during the fiscal year.
- If rates do remain higher, CCAP could see a further risk in non-accruals the reliance on PIK income from portfolio companies, possibly impacting their financials going forward.
Previous Write-Up
I last covered Crescent Capital BDC back in January in an article titled: Forget Bonds, Boost Your Income With This Near Double-Digit Yield . I mean who doesn't like getting a high-yield that's well-covered? Since my last thesis the share price has appreciated nicely growing from $16.43 to over $17, where it currently trades. My portfolio holdings include the likes of Ares Capital ( ARCC ), Capital Southwest ( CSWC ), and Blackstone Secured Lending ( BXSL ), all 3 BDCs that have seen some nice capital appreciation in the past year....
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For further details see:
Crescent Capital: Strong Fundamentals And Higher Interest Rates Should Lead To Higher Valuation