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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T&T Capital Management LLC is a registered investment adviser. The research presented here reflects the firm’s opinions and is not personalized investment advice. Past performance is not indicative of future results. Form ADV available at adviserinfo.sec.gov.

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