BDCs: Adjusting estimates for multiple BDCs following the Q1 print

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BDCs: Adjusting estimates for multiple BDCs following the Q1 print

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BDCs

Adjusting estimates for multiple BDCs

following the Q1 print

Price Objective Change

Sixth Street (TSLX) 22 May 2026

Lower activity-based fees drove the dividend reset given macro uncertainty. And TSLX Equity

lowered the 2026 guide to a 10-10.5% ROE. The revised guide is still attractive, in our Americas

view. Importantly, credit remains solid and the vast majority of the NAV/share decline BDCs

was related to wider credit spreads or changes in market multiples, which could reverse Derek Hewett

over time. Maintain Buy. Research Analyst

BofAS

Nuveen Churchill (NCDL) +1derek.hewett@bofa.com646 855 2087

Limited exposure to software helped mitigate private credit volatility. Still, margin

pressure and other macro factors weighed on results. Importantly, credit remains solid,

but there was an uptick in PIK. Capital deployment was limited given leverage Exhibit 1: Adjusting estimates

constraints. Maintain Buy. Adjusting estimates for multiple BDCs

2026 2027

Palmer Square (PSBD) BofA BofA BofA BofA

PSBD’s liquid credit strategy drove elevated loan marks, negatively impacting NAV/share Old New Old New

and leverage. Some unrealized losses should reverse over time as leveraged loan prices BBDC $0.96 $0.99 $0.92 $0.94

recover. Non-accruals and PIK remain low. Maintain Neutral. BCSF $1.63 $1.67 $1.51 $1.51

CCAP $1.62 $1.57 $1.55 $1.51

Barings (BBDC) CGBD $1.41 $1.35 $1.42 $1.40 GSBD $1.27 $1.06 $1.23 $1.11

A stable quarter while most peers lagged due to margin pressure and credit/software MFIC $1.35 $1.40 $1.27 $1.23

concerns. There was an uptick in non-accruals, but credit still strong. Notably, BBDC is NCDL $1.64 $1.55 $1.60 $1.49