Private credit bond spreads show smaller lenders priced at greater risk
A Reuters analysis reveals that private credit bond investors are assigning higher risk premiums to smaller U.S. private credit firms compared to larger ones, leading to wider spreads for the former. This increasing selectivity in the market is driven by rising borrower stress and concerns about portfolio quality, scale, and capital access, especially for business development companies (BDCs). While larger firms like Ares Capital and Blackstone show tighter spreads, smaller entities like BCP Investment Corp have significantly wider spreads, reflecting investor differentiation.
MAY 18·MarketBeat→
Blackstone Secured Lending Fund (NYSE:BXSL) Price Target Cut to $26.00 by Analysts at Royal Bank Of Canada
Royal Bank Of Canada analysts have reportedly cut their price target for Blackstone Secured Lending Fund (BXSL) from $28.00 to $26.00, while maintaining an "outperform" rating. Other firms, including Truist Financial and JPMorgan Chase & Co., have also adjusted their price targets, resulting in a consensus "Hold" rating and an average price target of $25.66 for the stock. Insider buying activity by Robert J. Bass was noted, alongside several institutional investors modifying their holdings in BXSL.
MAY 11·Seeking Alpha▼
Blackstone Secured Lending: High Yield And NAV Discount Aren't Enough To Ignore Rising Credit Risks
Blackstone Secured Lending (BXSL) faces significant risks, including sequential declines in net investment income and NAV, along with a sharp increase in non-accruals from 0.6% to 4.7%. Despite a high yield of 12.6% and a 7.3% NAV discount, the article argues these aren't enough to offset the deteriorating credit quality and potential for a 9-10% dividend cut. Consequently, the author maintains a "hold" rating, awaiting stabilization in key financial metrics.
