Wednesday, December 4, 2013

Seeking Alpha: Not Such Glad Tidings For Gladstone Capital

Having written last week about a company that is like a business development company (BDC), but isn't, today I'm writing about a company that is a BDC but that I don't like as much.

Gladstone Capital (GLAD) has done pretty well this year, particularly relative to the wider BDC sector, and the fiscal fourth quarter saw some solid positive write-ups and a sizable positive reversal on a large position. What's more, I do believe that BDCs could be a relatively good place to look for income in a rising rate environment. Despite that, though, the spread between investment income and dividend payout is much thinner than I'd like, competition is increasing, and this company's non-accruals are on the higher end of the industry. All told, I think there are better prospects in the BDC sector.

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Not Such Glad Tidings For Gladstone Capital

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