Golub Capital BDC, Inc. Stock News

BDCs have already experienced a notable correction. The sector median P/NAV metric indicates ~12% discount to NAV. Many players are priced even below that.

NEW YORK--(BUSINESS WIRE)--Golub Capital BDC, Inc. (the “Company,” “we,” “us” or “our”), a business development company (Nasdaq: GBDC), announced that it has priced an underwritten public offering of an additional $250 million in aggregate principal amount of 7.050% notes due 2028 (the “Notes”). The Notes will mature on December 5, 2028 and may be redeemed in whole or in part at the Company's o...

BDCs have two issues: 1) almost no margin of safety for dividend coverage, and 2) depressed earnings outlook. For many players it is just a matter of several quarters before they become forced to cut dividends. Yet, there are many arguments, which negate such a view. Unfortunately, many of them ar myths.

GBDC delivered an as-expected quarter with stable NAV and minor NII outperformance, supporting the safety of its 2025 dividend. The portfolio remains healthy, with non-accruals modestly below sector averages and no new non-accruals this quarter, though credit risk should be monitored. Recent liability restructuring and portfolio growth have stabilized NII, but multiple Fed rate cuts could press...

BDCs have outperformed over the past half-decade. However, macro and sector conditions are shifting rapidly. This could be the toughest environment BDCs have faced in years.

BofA Securities is the investment banking and capital markets division of Bank of America, one of the largest financial institutions in the United States.

Warren Buffett remains one of the world's most prominent investors, renowned for his long-term buy-and-hold strategies and extensive portfolio of public and private holdings.

Caring about dividends can increase our returns, but caring about NAV can save our portfolio. Return and NAV protection must go hand in hand, because there can be no sustainable return without protecting the value of the underlying assets. As far as I am concerned, the way to protect my portfolio is to favor only securities with a positive NAV over time.