Crescent Capital BDC: This 13%+ Yielding Bargain Remains A Buy

Roberts Berzins, CFA14K FollowersFollow5ShareSavePlay(10min)Comments(2)SummaryCrescent Capital BDC, Inc. trades at a 0.66x P/NAV, reflecting a ~34% discount and a 13.4% dividend yield.CCAP's fundamentals remain robust: 107% dividend coverage, conservative 40% portfolio LTV, and 2.2x interest coverage, despite a slight non-accrual uptick.A potential base dividend cut looms due to lower SOFR, but even a 20% reduction would leave a ~10.7% yield and stable NAV outlook.I view CCAP as a high-return, medium-risk tactical play, with upside tied to sector sentiment normalization and continued portfolio resilience. Ratana21/iStock via Getty Images Crescent Capital BDC, Inc. (CCAP) has been among my few tactical BDC investment picks, which I have identified as compelling opportunities for capturing outsized returns. The whole idea behind venturing into these tactical positions isThis article was written byRoberts Berzins, CFA14K FollowersFollowRoberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.