Blackstone Private Credit BDC discount play
The guest argued that Blackstone Secured Lending Fund offers an attractive total return opportunity due to its deep discount to net asset value.
The argument
The speaker highlighted that the BDC trades at a 10% discount to its NAV, unlike peers trading at premiums, and features a high yield of approximately 12%. They noted that 98% of its loans are collateralized, providing strong downside protection.
The thesis, stress-tested
✓ What validates it
- ✓The stock price reverting back toward its net asset value
- ✓Consistent maintenance of the 12% dividend distribution
▸ Risks discussed
- ▸Broad sell-offs in the software and technology sectors can drag down BDC valuations
- ▸Credit quality deterioration in the underlying loan portfolio
Hear it yourself
"Anyway, but it's trading at at the a fairly decent discount to its net asset value. It's about 10% below its NAV as opposed to other BDCs, which are all trading at premiums. And it's got about 98% of its loans are collateralized."
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