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PennantPark Floating Rate Capital: 15% Yield, 23% Discount, But A Clear No-Go

Source: SeekingAlpha

2026-03-08 03:28:55 ET

In December 2025, I decided to downgrade PennantPark Floating Rate Capital ( PFLT ) because of three reasons:

  1. Base dividend coverage was well below 100% (worse than for most other sector peers).
  2. Leverage was meaningfully above a level that could be deemed prudent.
  3. Clear push towards unconsolidated JVs, which facilitate additional leverage even if it otherwise (on a consolidated level) by BDC regulation might not be allowed.

Read the full article on Seeking Alpha

For further details see:

PennantPark Floating Rate Capital: 15% Yield, 23% Discount, But A Clear No-Go
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