16% Yield, 23% Discount

Like other BDC's that we've covered in recent articles, this stock has gotten hit hard in the 2020 COVID-19 crash - it's down -36% year to date, even with bouncing back 61.65% over the past quarter. That price decline has led to a hefty -23.3% discount to NAV for the stock, which is selling at a deeper Price/Book discount of .78X vs. the industry average of .87X. Price/Sales also is much lower, at 2.76X, vs. the 4.42X industry average, while the market is demanding a much higher yield in an industry where yields are already at nosebleed levels.

BlackRock TCP Capital Corp (TCPC) is a Business Development Corp., a BDC, specializing in direct equity and debt investments in middle-market, senior secured loans, junior loans, originated loans, mezzanine, senior debt instruments, bonds, and secondary-market investments. It seeks to invest in the United States. The fund typically invests between $10 million and $35 million in companies with enterprise values between $100 million and $1500 million. It prefers to make equity investments in companies for an ownership stake.

Source: Seeking Alpha

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