Goldman Sachs BDC: Speculative Buy On Exaggerated SaaS Fears

The Asian Investor31.62K FollowersFollow5ShareSavePlay(9min)CommentsSummaryGoldman Sachs BDC (GSBD) likely saw its peak in net investment income, with a 20%+ NII contraction and rising non-accruals in Q4’25. GSBD restored dividend coverage to more than 100%, but maintains only a small safety margin amid portfolio shrinkage and higher non-performing loans. Shares trade at a 26% NAV discount (P/NAV 0.74X), reflecting elevated credit risk and concerns over loan quality, especially in SaaS exposure. With further interest rate cuts expected in 2026, GSBD will likely continue to see income pressure. However, the large NAV discount provides a margin of safety. Daniel Grizelj/DigitalVision via Getty Images Goldman Sachs BDC (GSBD)'s net investment income more than likely already peaked during the last interest rate cycle, but shares remain interesting for investors given recent SaaS fears that pushed shares to newThis article was written byThe Asian Investor31.62K 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 GSBD, ARCC, OBDC, FSK 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.