EQUITY RESEARCH | DEEP VALUE RESEARCH
Five Business Development Companies (BDC)
Sector: Financials / BDC |
Published: 2026-10-20 |
Pages: 6
Price at publication: OTF $9.01, FSK $10.14, MSDL $12.78, OBDC $9.89, OCSL $11.39
Themes: BDC Discount to NAV Income
Executive Summary
Five business development companies, MSDL, OTF, OBDC, OCSL and FSK, closed October 19 at 55% to 73% of their June net asset value, down 14% to 23% from their August highs without any new credit problems. Run the discount through each balance sheet and the prices imply permanent losses of 14% to 24% of the loan book, far worse than senior loans lost over the whole 2008 cycle. Each portfolio holds 163 to 232 companies.
What’s Inside The Full Report
- Executive summary and key points
- Round Trip Since August
- What The Discount Says About The Loans
- Two Hundred Borrowers Apiece
- What 2008 Did To Stocks
- Rates Work Both Ways
- What Each One Is Worth
- How I Could Be Wrong
- My Read
- TTCM rating and position disclosure
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