Yield Hunting Part 8: 7%+ In 1 Year From Crescent Capital BDC Baby Bonds
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Crescent Capital BDC's baby bond FCRX offers a 7.16% yield to maturity, outperforming sector benchmarks by 2%. The company has a Baa2 credit score, strong profitability, asset quality, and leverage, but relies on refinancing unsecured notes.
February 11, 2025 | 7:00 pm
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Crescent Capital BDC's baby bond FCRX offers a 7.16% yield to maturity, outperforming sector benchmarks by 2%. The company has a Baa2 credit score, strong profitability, asset quality, and leverage, but relies on refinancing unsecured notes.
The high yield to maturity of 7.16% on FCRX, which is 2% above sector benchmarks, is attractive to investors seeking income. The Baa2 credit score indicates moderate credit risk, and the company's strong financial metrics support its ability to meet obligations. However, reliance on refinancing unsecured notes could pose a risk if market conditions change.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90