Nadzeya Haroshka/iStock via Getty Images Investment Thesis Because the BDC sector has faced increased market risks , which have led to capital outflows and a rise in redemption requests among investors, many assets have lost their investment appeal. Accordingly, I have significantly narrowed my selection of BDCs for my personal income-focused portfolio. Particularly among the industry's largest pl...
Nadzeya Haroshka/iStock via Getty Images Investment Thesis Because the BDC sector has faced increased market risks , which have led to capital outflows and a rise in redemption requests among investors, many assets have lost their investment appeal. Accordingly, I have significantly narrowed my selection of BDCs for my personal income-focused portfolio. Particularly among the industry's largest players, which do not have many high-quality business models or loan portfolio management strategies. Ares Capital ( ARCC ) and Blackstone Secured Lending Fund ( BXSL ) are two companies on the list of the largest players in the BDC industry. Their market capitalizations stand at $13.14 billion and $5.60 billion, making them the first and second largest in the sector. Consequently, in this article, there will be a comparative analysis of the two largest BDC companies, both of which are externally managed but have a number of fundamental differences. Even though ARCC and BXSL share many similarities in management practices, they get different ratings from me. Whereas I recommend "Buy" for Ares ( in line with my previous assessment ), I am upgrading my rating for Blackstone from "Sell" to "Hold." I will present arguments and performance criteria in this analysis to help determine the best BDC asset to add to your portfolio. My rationale for upgrading BXSL's rating is based on the results of a dividend coverage stress test for rate changes. Moreover, despite the turbulence in the private lending sector, Blackstone has shown continued resilience. Fundamental Similarities Between ARCC and BXSL It is no coincidence that ARCC and BXSL were chosen for comparison, since they are the most bitter direct competitors in the BDC sector. Firstly, they're both really sensitive to changes in Fed rates, because most of their loans are floating-rate and tied to the SOFR. As the December 2026 meeting is forecast to bring another 25-basis-point rate cut, the outlook for spread compression and a p...
Thousands of tiny bugs from Africa have been released at an Indonesian palm oil plantation in North Sumatra as the world’s biggest grower seeks to revive output growth after years of stalling production. The release of about 7,000 African weevils at a plantation owned by state-run PT Perkebunan Nusantara IV on Thursday marks the first step of a broad plan to introduce around 1 million of the bugs ...
Thousands of tiny bugs from Africa have been released at an Indonesian palm oil plantation in North Sumatra as the world’s biggest grower seeks to revive output growth after years of stalling production. The release of about 7,000 African weevils at a plantation owned by state-run PT Perkebunan Nusantara IV on Thursday marks the first step of a broad plan to introduce around 1 million of the bugs across Indonesia. The hope is they will help to improve pollination and fruit development, lifting production. Indonesia’s output growth has stalled in recent years, primarily due to old trees that some growers are reluctant to replant due to the extended time it takes for them to fruit. While the insect release doesn’t address the underlying issue of aging plants, a similar weevil program on a smaller scale in the 1980s led to a significant improvement in production rates across the country. Around 6,000 weevils were collected from Tanzania early last year and sent to a scientific facility in North Sumatra for tests, including on how they interact with local insects, and to reproduce in vast numbers. Palm oil is native to Africa, making the Tanzanian bugs well suited for the role. The first batch of weevils released at the 8,000-hectare plantation near the scientific facility are expected to have an impact on production within about 10 to 12 months, said Agus Eko Prasetyo, a researcher from the Indonesian Oil Palm Research Institute, who is leading the program. More than two dozen other companies and smallholder groups that are involved in the initiative will be allocated weevils for their plantations in stages, with the next release expected next week, Prasetyo added. Some bigger producers that have their own laboratories are expected to reproduce the bugs, he said. “This is just the beginning,” Prasetyo said. Indonesia is seeking to expand its biofuel program , meaning more palm oil diverted to local supply rather than for export, and the initiative is gaining momentum a...