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Golub Capital: Weaker Financials But Continue To Hold
2026-05-11 · via All Articles on Seeking Alpha

Summary

  • Golub Capital BDC remains a Hold as portfolio quality deteriorates but largely tracks broader BDC sector trends.
  • Nonaccrual loans rose to 1.4% (fair value), and PIK income increased to 9%, signaling some credit stress.
  • GBDC’s software exposure (26% of portfolio) is mostly first lien, with only 8% facing elevated AI disruption risk.
  • Dividend coverage improved to 1.1x NII after a cut to $0.31, with spreads widening and opportunistic share repurchases accretive to NAV.
  • Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More »
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fengdr/iStock via Getty Images

Business development companies have been buffeted by headwinds over the last six months. Golub Capital BDC (GBDC) has not been immune to these headwinds but has fared better than many of its peers.

Investment Thesis and

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of ARCC, BXSL, GBDC, HTGC, TSLX, MSDL, RWAYI, SLRC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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