"SLRC is a single-stock BDC that lends to U.S. middle-market businesses, mostly through senior secured floating-rate loans, and must distribute the bulk of taxable income to shareholders."
"The Fed cut 75 basis points between October and December 2025, taking the upper bound to 3.75% where it has held since. Floating-rate loan yields followed."
"Credit quality is pristine. The book is 100% performing with a Q3 non-accrual rate of 0.3% at fair value. Co-CEO Bruce Spohler called the portfolio '100% performing'."
SLR Investment, a business development company, trades at nearly $16 with a 10.4% dividend yield. It lends to U.S. middle-market businesses through senior secured floating-rate loans. The company has a $3.30 billion portfolio across 880 issuers, primarily in specialty finance. Recent Fed rate cuts have compressed net investment income, leading to a shortfall in earnings versus distributions. Despite this, the company maintains a pristine credit quality with a low non-accrual rate, which has prevented dividend cuts thus far.
#slr-investment #business-development-company #dividend-yield #net-investment-income #credit-quality
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