New Mountain Finance Q2: Deep Discount Amid Challenges In The BDC Sector

Arbitrage Trader Investing Group Leader Follow Summary New Mountain Finance trades at a 37% discount, near its five-year low, presenting a compelling value opportunity. NMFC's discount-adjusted ROE is more than 8%, outpacing both its own bonds and average BDC OTC bonds. The common stock's risk is justified by its superior return profile, despite recent dividend cuts and NAV decline. I favor NMFC common stock over its baby bonds, given the negative yield-to-worst on NMFCZ and higher risk-adjusted returns. Looking for a helping hand in the market? Members of Trade With Beta get exclusive ideas and guidance to navigate any climate. Learn More » J Studios/DigitalVision via Getty Images New Mountain Finance ( NMFC ) just announced its second quarter 2 026 earnings, and we want to take a look at them. We will examine its assets, investment statement, debt, and financial metrics and calculate some ratios for the common stock. It's currently at This article was written by Arbitrage Trader 15.85K Followers Follow Arbitrage 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, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NMFC over 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.