Hi YXI friends,

Welcome to our fortnightly update on Business Development Companies (BDCs). With each update, we focus on the latest price movements and metric comparisons across all of the BDCs in our coverage, plus earnings analysis where applicable.

For those who are new to BDCs, they are private credit companies that lend money to medium-to-large private businesses outside of the banking system.

For investors, these are attractive high yield opportunities when the BDC’s portfolio is well diversified and highly credit-worthy.

In our updates, we primarily cover 8 BDCs, namely ARCC, OBDC, BXSL, FSK, MAIN, GBDC, HTGC, FDUS. Today, we go over their key metrics, with earnings review for OBDC and BXSL.

Table of Contents

• 1. BDC Key Metrics Overview

• 2. Blue Owl Capital (OBDC) Earnings

• 3. Blackstone Secured Lending (BXSL) Earnings

DISCLAIMER: This newsletter is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.

1. BDC Key Metrics Overview

Latest Price Performance

In the past month, BDCs suffered pullbacks across board with the broader market selloff. However, the extent of the drops showed strong resiliency in the private credit sector.

HTGC and MAIN led the pullbacks as they trade at the highest premium to NAV among its peers.

ARCC, OBDC, FSK, and GBDC largely saw very benign moves given the broader risk-off mode.

Price / NAV Premiums

MAIN and HTGC both trade at significant premiums, but that’s been the case for some while.

ARCC and BXSL’s trade at 10-20% premiums, which I do think are justified due to the strength of their portfolios and track recrod.

OBDC, FSK, and GBDC trade near par, which are decent opportunities for yields at not too expensive prices.

Annualised Dividend Yield on Stock Price

FSK, GBDC, OBDC lead in yields with 10%+, but apart from MAIN, the BDCs are offering similar yields in the 9-11% range. Diversifying across them is not a bad idea, especially given the risk free rate of Treasury bonds is falling.

2. Blue Owl Capital (OBDC) Earnings

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