Positive
Seeking Alpha
1 month ago
FSEN Converts To FSSL, The Next Alpha Opportunity
FS Specialty Lending Fund offers a compelling opportunity as a newly listed, diversified credit CEF trading at a -26.9% discount to NAV. FSSL has transitioned from an energy-focused, underperforming BDC to a portfolio of 84% floating-rate, 90% senior secured loans, with minimal interest rate risk and a 0.5-year duration. Management has cut fees, reduced non-accruals to 0.8%, and targets a competitive 9.0%-9.5% NAV yield, translating to a 12.3% yield at current prices.