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OBDC trades at 72% of NAV with a 12% yield, undervalued despite strong fundamentals and liquidity.

Market News
05 Oct 2026
Seeking Alpha
View Source
Neutral
OBDC trades at 72% of NAV with a 12% yield, undervalued despite strong fundamentals and liquidity.

OBDC is trading at 72% of its net asset value (NAV), reflecting significant market pessimism not supported by its portfolio fundamentals. The company reset its base dividend to $0.31, which is now covered by adjusted net investment income, offering a 12% base yield at current prices. Recent loan sales near par, strong liquidity, and active share buybacks suggest the intrinsic value is higher than the current market discount. The fair value range is estimated between $12.10 and $12.85 per share, implying the market is pricing in default rates much higher than observed credit trends.

Ares Capital Corporation (ARCC) shows a dividend yield of 10.18% and a market cap of $13.71 billion as of Oct 06, 2026 03:21 WIB on Pluang. Despite a 1.36% drop in price to USD 18.90, buy orders dominate at 99%, indicating strong investor interest. This context highlights the appeal of dividend-paying financial stocks like OBDC, which offers a 12% base yield after its dividend reset, even as it trades below net asset value.

More News (ARCC)

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