Goldman Sachs BDC: Excessive NAV Discount
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The Asian Investor31.13K FollowersFollow5ShareSavePlay(10min)CommentsSummaryGoldman Sachs BDC faces portfolio value declines and dividend coverage concerns amid anticipated lower federal fund rates.GSBD's non-accrual percentage has improved in the last year, but the BDC's portfolio quality and coverage ratio lag peers like ARCC and BXSL.Shares trade at an excessive discount to net asset value, reflecting ongoing net investment income pressure and portfolio contraction risks.I maintain a buy rating on GSBD as the BDC already changed its dividend policy earlier this year.Goldman Sachs BDC is likely to eliminate its special dividends in 2026, but the investment firm still has an attractive forward dividend yield of 13.1%. ryasick/E+ via Getty Images Shares of Goldman Sachs BDC (GSBD) have revalued steadily lower since August, highlighting growing fears about falling federal fund rates (posing a threat to net investment income) as well as the BDC's dividend coverage. Goldman Sachs BDC is seeing a falling portfolio valueThis article was written byThe Asian Investor31.13K FollowersFollowI am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon.Analyst’s Disclosure:I/we have a beneficial long position in the shares of ARCC, BXSL, OBDC, FSK, GSBD either through stock ownership, options, or other derivatives. 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.