RWAYI: Runway Growth Finance's New 7.25% Bond Yields 7%+

Arbitrage TraderInvesting Group LeaderFollow5ShareSavePlay(6min)CommentsSummaryRunway Growth Finance Corp. has launched 7.25% baby bonds, RWAYI, due 2031, trading near par with yield to worst around 7.4%.RWAYI offers a higher yield than both RWAY’s existing baby bonds and comparable BDC sector debt, with a similar risk profile.RWAY maintains a healthy portfolio: 1.15% non-accrual loans, 89% senior secured investments, and a 201.8% asset coverage ratio.With RWAY common stock trading at a 32% discount to NAV and strong asset coverage, RWAYI presents an attractive risk/reward balance.This idea was discussed in more depth with members of my private investing community, Trade With Beta. Learn More » vovashevchuk/iStock via Getty Images In this article, we will focus on the recently announced and upcoming listing of debt instruments on the stock exchange: 7.25% bonds (RWAYI) of Runway Growth Finance Corp. (RWAY) due 2031. As always, weThis article was written byArbitrage Trader15.62K 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.