BDC Weekly Review: BDC Lending Rates Are Appealing

We take a look at the action in business development companies through the third week of July and highlight some of the key themes we are watching. BDCs outperformed the broader income market despite a dip in sentiment. BXSL saw a surge in share lending rates to 12.2%, signaling heightened short interest and offering attractive additional income for investors willing to lend shares. Recent BDC earnings were mixed: SAR disappointed with a 5% NAV drop, while MAIN and CSWC posted NII beats but only modest NAV changes. TRIN's new commitments exceeded $700m, indicating a rebound in deal activity and potential fee income, while sector headwinds like low deal flow and tight spreads are easing.