BDCs May 2026

[schrodingerscat]

BDCs 5.2026​

ARCC just reported and is considered a bell-weather for the BDC investment community. Following to report: FDUS, MAIN and CSWC. TSLX took a serious hit today. I was startled that it cut its dividend as its fundamentals have been sound. A year ago, TSLX's dividend coverage was strong and I had no concerns about the payout sustainability. It employs modest leverage and a high allocation to first-lien loans (96ish%). It still trades at a 20% premium, although that's going to be changing. My 1.7% position will most likely be blown out tmrw.

There is no disputing the fact that the BDC sector is highly volatile (high volatility meaning "fast market"), but the well managed ones successfully trade on their high-yield, first-lien assets. As always, are the earnings solid? That means the level of non accruals Have the actual cash income streams increased on a quarter to quarter basis? Credit fundamentals will stabilize.

Long: CSWC 3.7%, ARCC 3.1%, HTGC 3%, MAIN 2.4%, TRIN 2.4%, FDUS 1.9%, TSLX 1.7%, CCAP 1.6%.

 

[Rhythm Method]

Thanks for this! I was missing you and the sharing of your personal/professional experience. Take care and post often! - RM

 

[AudiDudi]

Sold GSBD yesterday - earlier today, it was down 30c from where I sold. (Finished down 22c from sale)

 

[mykes2025]

BDC basket below: BDCs are currently 4.4% of my equity portfolio. HTGC & GAIN have +100% payback %, GLAD 85%, and TSLX 77%, which just means I have held them for a long time. Many go back to 2018. I haven't purchased a new, or add to BDCs in a while and I plan to just watch the sector for now. My worst performer is OBDC, with a TR 14% and a payback% of 33%. Best performer GAIN, TR 165%, payback 101%. I am plugging in my key metrics as they make their reports last week and this week.

Thanks for starting this thread, I don't recall seeing prior months but maybe I missed them.

BDC	% Dollar Value of BDC Basket
HTGC	12.0%
GLAD	10.2%
GAIN	12.2%
TSLX	13.3%
CGBD	8.1%
OBDC	15.5%
ARCC	8.3%
FDUS	10.6%
GBDC	6.6%
BXSL	3.3%

 

[schrodingerscat]

Thanks for this! I was missing you and the sharing of your personal/professional experience. Take care and post often! - RM

I've missed you too! I'm on the fence wrt continuing a BDC thread. People seem to appreciate it, so I double post - the same content on both this site and Fido.

 

[fjpajerski]

Thanks. Like so many now here, I no longer waste a second on Fido thanks to its forum "refresh" and then Fido's woeful support of it. Sad.

My BCD investments are only in the four internally-managed funds, particularly CSWC and TRIN. Check out their currently very positive stats. I don't waste my time considering any externally-managed offerings.

In My Opinion, a key external-management aim is to further enrich its management while internal-management instead is aimed at benefitting the shareholders.

--- Frank

 

[Flieger]

I only hold one BDC currently (CSWC), having sold BSXL, ARCC, ARDC, etc.

Flieger

 

[Rhythm Method]

I’m holding a small position in ARCC. I plan to add a little more this month.

 

[Flyfish1]

I'm long ARCC, BIZD, CSWC, OBDC. Only ARCC is in the black for me.

 

[Lawrencewendall]

BDCs are 17%, all in taxable. Love the 199a

 

[mykes2025]

FDUS up 6.1% today off their report. Great report. 144% base dividend coverage, .90 debt/equity, non-accruals virtually non-existent! NAV stable. Nice!

 

[schrodingerscat]

Thanks. Like so many now here, I no longer waste a second on Fido thanks to its forum "refresh" and then Fido's woeful support of it. Sad.

My BCD investments are only in the four internally-managed funds, particularly CSWC and TRIN. Check out their currently very positive stats. I don't waste my time considering any externally-managed offerings.

In My Opinion, a key external-management aim is to further enrich its management while internal-management instead is aimed at benefitting the shareholders.

--- Frank

Agree on every point you make! I do own a few externally managed pups; namely, ARCC 3% (which has been good to me), FDUS 2% (ditto), and CCAP 1.5% (the highest risk position I own, with some dismay and chagrin). Always great to hear your input!

 

[PaulR888]

I've missed you too! I'm on the fence wrt continuing a BDC thread. People seem to appreciate it, so I double post - the same content on both this site and Fido.

I've missed you too! I'm on the fence wrt continuing a BDC thread. People seem to appreciate it, so I double post - the same content on both this site and Fido.

Hi ... Simiilar to Frank, I also prefer the internally managed BDCs and the ones that hang out at the highest premium levels which is investor friendly if they decide to use their ATM. Here is a sortable table, assuming it transfers here OK.

https://cefdata.com/bdc-universe

3% PV: HTGC
3% PV: CSWC

MAIN is another and now I read so is TRIN.

How about a thread "BDCs/ REITs"?

 

[schrodingerscat]

Hi ... Simiilar to Frank, I also prefer the internally managed BDCs and the ones that hang out at the highest premium levels which is investor friendly if they decide to use their ATM. Here is a sortable table, assuming it transfers here OK.

https://cefdata.com/bdc-universe

3% PV: HTGC
3% PV: CSWC

MAIN is another and now I read so is TRIN.

How about a thread "BDCs/ REITs"?

It's true that their are similarities with respect to BDCs and REITs. However, they are different animals, differing primarily in their underlying assets: BDCs lend to or invest in small-to-mid-sized private businesses, while REITs own or finance income-generating real estate. Both are tax-advantaged, income-focused vehicles requiring 90% income distribution, but BDCs focus on business credit/equity, while REITs focus on property.

 

[dickoncapecod]

Will be interested to see KBDC earnings report after the close.
Regards, Dick

 

[schrodingerscat]

Will be interested to see KBDC earnings report after the close.
Regards, Dick

In the previous quarter ending December 31, 2025, Kayne Anderson BDC Inc's revenue was $61.90 million, which beat analysts' revenue expectations of $61.05 million by 1.39%. KBDC actual earnings were $0.32 per share, which missed analysts' earnings expectations of $0.41 per share by -22.71%.

In the past couple of quarters, KBDC has recorded several new non-accruals, which have pushed the non-accruals share from 1.6% in Q4 2025 to 2.6% now. It is still below the sector average and a very solid metric, but the key message is unchanged: going forward KBDC will likely face similar headwinds. The manager's expertise is in energy; we'll see how well an energy sector focused manager can do outside their area of expertise relative to their competition.

 

[PaulR888]

It's true that their are similarities with respect to BDCs and REITs. However, they are different animals, differing primarily in their underlying assets: BDCs lend to or invest in small-to-mid-sized private businesses, while REITs own or finance income-generating real estate. Both are tax-advantaged, income-focused vehicles requiring 90% income distribution, but BDCs focus on business credit/equity, while REITs focus on property.

Fully understood. I was addressing your doubt about continuing the thread and thinking maybe increase the audience of income centric investors. CEFs, BDC and REITs are popular income vehicles.

 

[schrodingerscat]

Aah, how thoughtful of you! BDCs are a combo of CEF and REIT in may ways. I do have a 10% REIT allocation which I consider strong holds: RQI, OHI, STWD, RLTY. I just aded a little $ to IYRI, a Neos ETF.

 

[PaulR888]

Aah, how thoughtful of you! BDCs are a combo of CEF and REIT in may ways. I do have a 10% REIT allocation which I consider strong holds: RQI, OHI, STWD, RLTY. I just aded a little $ to IYRI, a Neos ETF.

I own CTRE instead of OHI. Also NHI and VICI. I am 9% PV for REITs and 6% PV for BDCs. Combined, that is 30% of my equity %. Will check out IYRI, not familiar with it.

 

[schrodingerscat]

I own CTRE instead of OHI. Also NHI and VICI. I am 9% PV for REITs and 6% PV for BDCs. Combined, that is 30% of my equity %. Will check out IYRI, not familiar with it.

Those are good reits. IYRI is a lot like the many other specialized NEOS funds in that it is relatively new. Therefore, there isn't much in the way of a track record. I'm holding merely 0.5%.

 

[dickoncapecod]

In the previous quarter ending December 31, 2025, Kayne Anderson BDC Inc's revenue was $61.90 million, which beat analysts' revenue expectations of $61.05 million by 1.39%. KBDC actual earnings were $0.32 per share, which missed analysts' earnings expectations of $0.41 per share by -22.71%.

In the past couple of quarters, KBDC has recorded several new non-accruals, which have pushed the non-accruals share from 1.6% in Q4 2025 to 2.6% now. It is still below the sector average and a very solid metric, but the key message is unchanged: going forward KBDC will likely face similar headwinds. The manager's expertise is in energy; we'll see how well an energy sector focused manager can do outside their area of expertise relative to their competition.

My interest shot up when I noted Koch induustries owned first 15% now 18% of KBDC. Since the entire company is Charles's piggy bank, there is no doubt he is the final decision maker on the holding. Charles is not always right, but he doesn't add to losing ideas. IF there is a candidate asset where I think SOMEBODY actually DOES know something we don't, it's this pup.
Regards, Dick

 

[Affinity4Investing]

Holding ARCC, BIZD, TRIN, CSWC and baby bonds TRINZ as well as NMFCZ. Loved CSWCZ, but it got called. Have only been adding to TRIN and CSWC, recently.

 

[StripermanNH]

I've been eyeing MAIN for quite some time and finally bought a starter position yesterday at $50.50/sh. I also own ARCC, TRIN, CSWC, FDUS, HTGC, and TSLX.

 

[schrodingerscat]

I've been eyeing MAIN for quite some time and finally bought a starter position yesterday at $50.50/sh. I also own ARCC, TRIN, CSWC, FDUS, HTGC, and TSLX.

You own the "good" BDCs. MAIN is a good add, but take your time adding it. It's still pricey. My CB is $33.00, bought during Covid..

 

[PaulR888]

I've been eyeing MAIN for quite some time and finally bought a starter position yesterday at $50.50/sh. I also own ARCC, TRIN, CSWC, FDUS, HTGC, and TSLX.

You are shopping in the right neighborhood. My recollection of MAIN is the advertised yield is a little lower but when you add the supplementals if becomes better.