What Goldman Sachs BDC (GSBD) Said on Its Q3 Earnings Call

Impact · against what's priced in

GSBD is seeing a deterioration in asset quality and a tightening of dividend coverage that creates a higher risk of payout cuts. While lower leverage and slightly wider spreads on new loans are positive, they are outweighed by a rise in non-accruals and a decline in NAV.

GSBD−0.40

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In context

Non-accruals rose to 4.2% of the portfolio from 2.9%, and GAAP after-tax net investment income fell to $35.3 million from $42.2 million, leaving no margin of error for the $0.32 dividend.

Read from the article alone

• middle market▲400%
• earnings
• GSBD
• bdc
• dividend
• leverage
• loan portfolio
• net asset value
• non accrual