Goldman Sachs BDC: The Low-Risk Opportunity At A Big Discount In A Panicked BDC Sector

Arbitrage TraderInvesting Group LeaderFollow5ShareSaveCommentsSummaryGoldman Sachs BDC stands out as a lower-risk BDC, benefiting from low-cost, investment-grade debt and a portfolio dominated by senior secured loans.With 95% of investments rated as low risk and only 1.5% of loans on non-accrual, GSBD demonstrates strong credit quality and portfolio stability.GSBD's common stock trades at a 29% discount to NAV, offering a superior risk-return profile versus its OTC bonds and appearing undervalued in the sector.This idea was discussed in more depth with members of my private investing community, Trade With Beta. Learn More » JulPo/iStock via Getty Images Many BDCs have come under pressure in recent months, with their prices falling sharply. Investors have become more cautious due to the risk of an economic slowdown and potential credit problems. Goldman Sachs BDC (GSBD) is also currently tradingThis article was written byArbitrage Trader15.63K FollowersFollowArbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic. Denislav leads the investing group Trade With Beta, features of the service include: frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of 1200+ equities, IPO previews, hedging strategies, an actively managed portfolio, and chat for discussion. Learn more.Analyst’s Disclosure: I/we have a beneficial long position in the shares of 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.