Trinity Capital: This May Be The Best Double-Digit Yield In BDC Land

Trinity Capital demonstrates robust growth, disciplined underwriting, and a 12% yield, positioning it as a top BDC for income seekers. TRIN delivered a record $619M in Q2 fundings, 36% AUM growth, and maintained low non-accruals, reflecting strong credit quality and portfolio diversification. Balance sheet flexibility is enhanced by a premium to NAV, conservative leverage, $66M spillover income, and recent capital raises supporting future investments. I maintain a Hold rating on TRIN due to valuation premium, limited near-term upside, and macro risks, but recommend buying closer to NAV for better margin of safety.