PFLT: High Monthly Income, But Coverage Looking Pressured
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PennantPark Floating Rate Capital (PFLT) offers a high yield of ~10.7% but faces pressure on coverage as the Fed cuts rates. Trading at a slight premium to NAV, it may not be a bargain.
November 07, 2024 | 2:15 pm
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PennantPark Floating Rate Capital (PFLT) offers a high yield of ~10.7% but faces pressure on coverage as the Fed cuts rates. Trading at a slight premium to NAV, it may not be a bargain.
PFLT's high yield is attractive, but the pressure on coverage due to potential Fed rate cuts could negatively impact its financial performance. Additionally, trading at a premium to NAV suggests it may not be undervalued, which could deter investors looking for bargains.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100