Golub Capital BDC: An Underrated Opportunity In The BDC Sector
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Arbitrage TraderInvesting Group LeaderFollow5ShareSavePlay(7min)Comments(2)SummaryGolub Capital BDC trades at a nearly 12% discount to NAV, well below its 5-year average discount of 2.8%.GBDC's portfolio is 92% first lien, with software and healthcare as leading sectors, and maintains investment-grade ratings from Moody's, S&P, and Fitch.Historical performance outpaces peers, with a 5-year average annual total return on NAV of 10.25% versus the peer group's 7.18%.Discount-adjusted ROE for GBDC common stock is around 9.5%.Looking for a portfolio of ideas like this one? Members of Trade With Beta get exclusive access to our subscriber-only portfolios. Learn More » Oliver Rossi/DigitalVision via Getty Images In this anаlysis, we examine the Golub Capital BDC (GBDC) and its key financial mеtrics - assеts, dеbt, crеdit rаting, and histоrical pеrformаncе - tо assеss whеther GBDC's cоmmon stоck rеpresents an аttractive invеstment oppоrtunity cоmpared to altеrnatives in thе bоnd mаrket. If you would like toThis article was written byArbitrage Trader15.74K 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 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.