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.
Click here to continue:
Not Such Glad Tidings For Gladstone Capital
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