Financial Services >> Analyst Interviews >> March 30, 2026
Key Takeaways: The BDC sector is currently experiencing a "convergence" of declining interest rates, dividend policy adjustments, and high-profile private credit losses, leading to deep market discounts. Despite these headwinds, analyst Sean-Paul Adams asserts that modern underwriting standards are vastly superior to those of the 2008 era, making a sector-wide implosion unlikely. He specifically highlights OBDC as an "outsized buy" because it trades at a steep discount—similar to underperforming peers—despite having stable portfolio metrics and diversified holdings. Investors are encouraged to focus on platform selection rather than the sector as a whole, rationalizing expectations toward sustainable 8% to 10% yields as the SOFR curve sharpens through late 2026. Profile
Sean-Paul Adams is a Senior Research Analyst at B. Riley Securities covering business development companies (BDCs) and the broader specialty finance sector. Prior to joining B. Riley Securities, he served as a senior research associate at Raymond James, where he worked on equity research coverage of BDCs and various specialty finance verticals. Mr. Adams holds a Master of Science in finance from the University of Florida’s William R. Hough Graduate School of Business and a Bachelor of Science in finance from the University of Florida. Profile
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TWST: Thanks so much for joining us. A commentary I read in early March referred to the BDC space as “very hated and deeply discounted at the moment,”
