Two Low-SaaS 11%+ BDCs Going From Bargains To Buys

Roberts Berzins, CFA13.96K FollowersFollow5ShareSavePlay(9min)Comments(4)SummaryKayne Anderson BDC and Trinity Capital offer 11%+ yields with minimal SaaS exposure, making them attractive amid sector-wide SaaS-driven BDC selloffs.KBDC's SaaS portfolio exposure is under 3%, and TRIN's is 10.3%, both well below sector averages, limiting their risk from SaaS credit events.Both BDCs demonstrate superior credit quality, with non-accruals at 1.4% (KBDC) and 1% (TRIN), and PIK income far below sector averages.Current market repricing has pushed KBDC and TRIN into bargain territory, offering robust yields and defensive portfolio characteristics for risk-averse investors. cherezoff/iStock via Getty Images A couple of years ago, private credit and especially BDCs (BIZD) were relatively unknown and not something that got frequently discussed in the media. It was mostly an institutional asset management base that transacted in the private credit field, primarily toThis article was written byRoberts Berzins, CFA13.96K FollowersFollowRoberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.Analyst’s Disclosure: I/we have a beneficial long position in the shares of KBDC 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.