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Business Development Companies
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BDC roundup A new bi-weekly research report from BofA/ML analyst Derek Hewett. It looks like he only covers 9 names, including CIT Group of which I am not familiar with. Buy: CODI, TCPC, TSLX Neutral: GSBD, GBDC Underperform: AINV, CIT Restricted: ACAS, ARCC Brief clip from the report... Adjusting POs to reflect sector re-rating We are increasing our POs on multiple BDCs to reflect the industry re-rating near its historic 1x NAV multiple. AINV increases to $5.00 from $4.75, TSLX increases to $18.25 from $17.50, TCPC increases to $16.25 from $16, GSBD increases to $20.50 from $19.50, and GBDC increases to $18.50 from $18. While meaningful industry multiple expansion is unlikely since there are no near-term catalysts, in our view, we continue to believe TSLX and TCPC have strong risk/reward profiles. Both BDCs focus on late-cycle risk, have proprietary origination platforms and have access to growth capital, enabling each to deliver attractive risk-adjusted returns for investors that exceed most peers. |
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