Blackstone

BX

Market cap $88.8B

Market sentiment appears overly defensive in certain areas, suggesting potential mispricing in risk assets. The analysis highlights top-tier BDCs, focusing on dividend yields, price/NAV, leverage, and credit quality. Main Street Capital (MAIN), Capital Southwest (CSWC), and Ares Capital (ARCC) offer strong yields with varying risk profiles.

BMO Senior Equity Analyst Brennan Hawkin joins 'Closing Bell Overtime' to talk the state of the private credit markets as the sector sees a downturn.

Investors interested in Financial - Miscellaneous Services stocks are likely familiar with XP Inc.A (XP) and Blackstone Inc. (BX). But which of these two stocks presents investors with the better value opportunity right now?

Market volatility has triggered indiscriminate selling across sectors. Rayonier trades at a deep discount despite strong long-term fundamentals. Blue Owl Capital sold off on credit fears, but results and insider buying tell a different story.

NEW YORK & PLAQUEMINE, La.--(BUSINESS WIRE)--Blackstone (NYSE: BX) announced today that private equity funds managed by Blackstone Energy Transition Partners (“Blackstone”) have completed construction of the Magnolia Power Generating Station (“Magnolia Power”), a 694-megawatt greenfield combined cycle gas turbine (“CCGT”) power plant in Plaquemine, Louisiana. Today's announcement marks the beginning of commercial operations at the plant. Blackstone, through its North American power platform, Ki.

More market jitters hit stocks this month, and this time the damage is leaking into the financial services sector. As usual, AI disruption was the catalyst, and several of the largest finance-sector stocks dropped 10% to 20% over just a few days.

UBS strategists say private credit could see default rates surge as high as 15% if artificial intelligence triggers an “aggressive” disruption among corporate borrowers. Bloomberg's Silas Brown has more from London.

Kayne Anderson BDC and Trinity Capital offer 11%+ yields with minimal SaaS exposure, making them attractive amid sector-wide SaaS-driven BDC selloffs. KBDC's SaaS portfolio exposure is under 3%, and TRIN's is 10.3%, both well below sector averages, limiting their risk from SaaS credit events. Both BDCs demonstrate superior credit quality, with non-accruals at 1.4% (KBDC) and 1% (TRIN), and PIK income far below sector averages.

Blackstone is rated a Strong Buy, with shares trading at an attractive 6.2x sales—near the low end of its historical range. BX's fundamentals remain robust, with AUM up 13% to $1.27T, fee-related earnings up 9%, and distributable earnings up 19% year-over-year. Concerns over private equity markdowns and industry headwinds are likely cyclical, not structural, with BX's scale and perpetual capital supporting long-term stability.

There are multiple risks for your BDC investments now and three that specifically create risk for certain BDCs. Business development companies offer high yields but carry significant, often misunderstood risks, especially in falling interest rate environments. Volatile interest rates can damage BDC profitability and distributable income, causing dividend cuts and share price declines.