OCSL Stock Recent News

I am increasingly cautious on BDCs due to rising non-accruals, weaker earnings, and looser underwriting amid intense competition for private credit deals. Elevated interest rates are suppressing BDC valuations and making it harder for borrowers to service debt, leading to fewer quality investment opportunities. Dividend coverage is weakening across many BDCs, with higher non-accruals and PIK income threatening the sustainability of distributions investors rely on.

We take a look at the action in business development companies through the fourth week of May and highlight some of the key themes we are watching. BDC sector pulled back 2% this week, but remains up 2.5% month-to-date; valuations are about 5% below historic averages. Despite headlines of credit stress, BDC portfolios' interest income continues to offset markdowns and non-accruals, supporting solid total NAV returns.

We take a look at the action in business development companies through the first week of May and highlight some of the key themes we are watching. BDCs fell around 1.5% this week due to a couple of weak Q1 reports, with the sector still below pre-Liberation Day levels. Despite recent dips, historically resilient BDCs are showing strong ROE figures, suggesting selective opportunities for patient investors.

Oaktree Specialty Lending Corporation (NASDAQ:OCSL ) Q2 2025 Earnings Conference Call May 1, 2025 11:00 AM ET Company Participants Clark Koury – Head-Investors Matt Pendo – President Armen Panossian – Chief Executive Officer and Chief Investment Officer Chris McKown – Chief Financial Officer and Treasurer Conference Call Participants Finian O'Shea – Wells Fargo Melissa Wedel – JPMorgan Paul Johnson – KBW Operator Welcome and thank you for joining Oaktree Specialty Lending Corporation's Second Fiscal Quarter 2025 Conference Call. Today's conference call is being recorded.

LOS ANGELES, CA, May 01, 2025 (GLOBE NEWSWIRE) -- Oaktree Specialty Lending Corporation (NASDAQ: OCSL) (“Oaktree Specialty Lending” or the “Company”), a specialty finance company, today announced its financial results for the fiscal quarter ended March 31, 2025.

One has grown its dividend for 48 consecutive quarters and just authorized a buyback of 7.5% of its outstanding shares. The other trades at a 17% discount to NAV and is backed by a legendary billionaire investor. Both yields are comfortably covered by cash flow and supported by strong balance sheets.

Market volatility has increased, making it challenging to predict future Treasury rates and impacting the frequency of my article publications. Price-to-book ratios reveal bargains. Preferred shares offer lower risk and high yields; recent trades in DX-C and EFC-B have been profitable.

LOS ANGELES, CA, April 14, 2025 (GLOBE NEWSWIRE) -- Oaktree Specialty Lending Corporation (NASDAQ:OCSL) (“Oaktree Specialty Lending”) today announced that it has extended its senior secured revolving credit facility (the “amended facility”). The final maturity was extended from June 2028 to April 2030.

The low ranking of Oaktree Specialty Lending, as a BDC, results from its weak performance metrics and superior sector alternatives at a 25% discount to P/NAV. The stock price of OCSL has declined by 32% during the past 52 weeks, which demonstrates its inferior performance relative to the VanEck BDC Income ETF. The stock's negative momentum and damaged long-term outlook result from the decline in NAV, rising non-accruals, and decreasing TII and NII.

Agency mortgage REITs are achieving exceptional price-to-book ratios. You want a high dividend yield? Great. But don't pay a huge premium in the share price. It's a great time for investors to capture some gains in this sector.