Business Development Companies (BDCs)

Today’s Trades: OCSL, ICSH, TRMD

Closed my position in Oaktree Specialty Lending Corporation (OCSL) for a small loss. This business development company, BDC, has underperformed others in my portfolio: Ares Capital (ARCC), Main Street Capital (MAIN), Gladstone Investment (GAIN) and Hercules Capital (HTGC).

I used the proceeds to purchase a new holding:

TORM (TRMD)

  • UK-based shipping company that owns a fleet of oil tankers
  • 19.4% dividend

Also, I had a short term T-bill mature today, so I used those funds to purchase a new holding for my cash reserves:

BlackRock Ultra Short-Term Bond ETF (ICSH)

  • 5.23% monthly dividend 

Today’s Trade: OCSL

Today I opened a small position on Oaktree Specialty Lending Corporation (OCSL).

  • Bought to open at $18.74 per share. Yield 11.62%, rated “2 Green” on Seeking Alpha.

I love business development compaines (BDCs) for their high yield, and I already own several, but I’ve had my eye on this one for quite some time. Today it fell below my buy price target.

Today’s Trades: May 6-7, 2024 T-Bills, RWAY

Had some T-Bills mature, so I reinvested:

30 ($30,000) July T-Bills yielding 5.37%

27 ($27,000) August T-Bills yielding 5.38%

Also added 100 shares of Runway Growth Finance Corp (RWAY) at $12.3752. On sale today, down 6.49%. Dividend 12.08%. Two green ratings on Seeking Alpha. Also recommended by More Ideas Than Money, Monthly Dividend Multiplier.