Palmer Square Capital BDC Inc.
- Open
- 10.31
- Day high
- 10.41
- Day low
- 10.31
- Prev close
- 10.45
- Volume
- 78K
- Mkt cap
- $319M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.0
- P/S
- 5.0
- Yield
- 15.47%
- Per share
- $1.61
- ▲Insiders net buying $1.6M over the last 3 months (6 open-market buys, 0 sales)
- 🏛Institutions accumulating (13F)
Palmer Square Capital BDC Inc. (PSBD) is a Financial Services company listed on NYSE. The stock is down 25% over the past year. Over the trailing 3 months, insiders filed 6 open-market buys and 0 sales (SEC Form 4).
Palmer Square Capital BDC Inc. (PSBD) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
PSBD earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $0.43 | $0.27 | -37.8% | $27M | +5.1% |
| May 6, 2026 | $0.40 | $0.35 | -12.5% | $26M | -3.9% |
| Feb 26, 2026 | $0.42 | $-0.16 | -138.1% | $30M | -1.2% |
| Nov 5, 2025 | $0.41 | $0.43 | +4.9% | $17M | -43.5% |
| Aug 6, 2025 | $0.41 | $0.43 | +4.9% | $26M | -14.4% |
| Feb 27, 2025 | $0.47 | $0.46 | -2.1% | $35M | +2.7% |
| Feb 28, 2024 | $0.55 | $0.58 | +5.5% | $30M | +22.0% |
| Sep 29, 2023 | — | $1.30 | — | $34M | — |
| Sep 29, 2022 | — | $-0.21 | — | $-6M | — |
PSBD insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 7, 2026 | Bicknell Martin C10 percent owner | Buy | 21,484 | $10.47 |
| Jul 7, 2026 | Bicknell Martin C10 percent owner | Buy | 40,000 | $10.56 |
| Jul 2, 2026 | Bicknell Martin C10 percent owner | Buy | 40,000 | $10.57 |
| Jun 30, 2026 | Bicknell Martin C10 percent owner | Buy | 30,000 | $10.79 |
| Jun 30, 2026 | Bicknell Martin C10 percent owner | Buy | 15,000 | $10.87 |
| Jun 30, 2026 | Bicknell Martin C10 percent owner | Buy | 1,988 | $10.80 |
| Nov 10, 2025 | Alaris Master Fund LP10 percent owner | Sell | 30,000 | $11.97 |
| Oct 23, 2025 | Alaris Master Fund LP10 percent owner | Sell | 532,350 | $12.56 |
| Mar 24, 2025 | Bloomfield Matthew Lofficer: President | Buy | 750 | $14.51 |
Source: PSBD SEC Form 4 filings, latest Jul 7, 2026. For informational purposes only — not investment advice.
See the full PSBD insider & 13F page →Palmer Square Capital BDC Inc. company profile
Overview
Palmer Square Capital BDC Inc. (NYSE:PSBD) is a business development company founded in 2019 and headquartered in Mission Woods, Kansas. The company completed its initial public offering in January 2024, raising $90 million to expand its investment activities. Palmer Square Capital BDC operates as a specialty finance company that provides debt capital to middle-market companies, distinguishing itself through its unique ability to invest across both liquid syndicated loan markets and private credit markets.
Business
Palmer Square Capital BDC operates in the business development company sector, which is a specialized segment of the asset management industry. A BDC is a type of investment company that provides financing solutions to small and medium-sized businesses that may have difficulty accessing traditional bank financing or public capital markets. The company's core business involves investing in corporate debt securities, primarily focusing on senior secured loans to middle-market companies. Senior secured loans are debt instruments that have priority claim on a borrower's assets in case of default, making them relatively safer compared to unsecured debt or equity investments. The company's investment portfolio spans 38 different industries, providing diversification across sectors including software, healthcare, professional services, and insurance. What makes Palmer Square Capital BDC unique in the BDC space is its dual-market investment approach. The company invests in both broadly syndicated loans (liquid loans traded in secondary markets) and private credit (direct lending to companies). Broadly syndicated loans are typically loans to larger companies that are sold to multiple institutional investors and can be traded in secondary markets, while private credit involves direct lending relationships with borrowers. This flexibility allows the company to capitalize on opportunities across different market conditions and credit cycles. The company's investment portfolio maintains a conservative profile with 96% of investments in senior secured loans, an average hold size of approximately $5-6 million per investment, and focuses on larger borrowers with an average EBITDA of around $450 million. The portfolio generates income through interest payments from borrowers, with a weighted average yield to maturity of approximately 10.4-10.7%.
Revenue model
Palmer Square Capital BDC generates revenue primarily through interest income from its debt investments. The company earns money by lending capital to middle-market companies at interest rates that exceed its cost of funding. The typical business model involves borrowing money at lower rates through credit facilities and issuing debt, then lending this capital to portfolio companies at higher rates, capturing the spread as profit. The company's revenue streams include interest payments from portfolio companies, fees from loan origination and structuring, and occasional gains from loan sales when market conditions are favorable. In recent quarters, total investment income has ranged from $27-37 million per quarter, with the company maintaining a disciplined approach to fee income, keeping payment-in-kind (PIK) income at approximately 0.5-2% of total investment income, which is notably low for the BDC industry. Several factors influence the company's profitability margins. Interest rate environment significantly impacts both funding costs and portfolio yields, with most loans being floating-rate instruments that reprice with market rates. Credit quality of portfolio companies affects both current income and potential losses, making underwriting discipline crucial. Market liquidity conditions influence the company's ability to deploy capital efficiently and realize gains through loan sales. The company benefits from spread widening in credit markets, which creates more attractive investment opportunities, while spread tightening can compress returns and lead to portfolio refinancing activity. Competition from other BDCs, direct lenders, and traditional banks can pressure pricing and deal flow. The company's unique positioning across both liquid and private credit markets provides some competitive advantage by allowing flexibility to pursue the most attractive risk-adjusted returns regardless of market segment.
Competitive moat
Palmer Square Capital BDC's competitive moat is moderate but differentiated within the BDC space. The company's primary competitive advantage lies in its unique dual-market investment capability, being the only publicly-traded BDC with meaningful exposure to both broadly syndicated loans and private credit markets. This flexibility allows the company to shift capital allocation based on where the most attractive risk-adjusted returns are available, providing tactical advantages during different market cycles. The company also benefits from operational transparency through monthly NAV disclosure, which is uncommon among BDCs and provides investors with more frequent portfolio valuation updates. Additionally, Palmer Square Capital BDC has a unique fee structure that charges management fees only on net assets rather than total assets, which is more investor-friendly than typical BDC fee arrangements. However, the company's moat faces several challenges. The BDC industry is highly competitive with numerous players competing for similar deal flow, and barriers to entry are relatively low for well-capitalized competitors. The company's investment focus on larger, higher-quality borrowers puts it in direct competition with larger institutional lenders, banks, and other BDCs with significantly more capital. The liquid loan market portion of the portfolio faces competition from mutual funds, CLOs, and other institutional investors, while the private credit segment competes with dedicated direct lending funds that may have lower cost of capital. The company's relatively small size (approximately $1.4 billion in assets) compared to larger BDCs and direct lending funds may limit its ability to lead large transactions or compete for the most attractive deals. Technology and data analytics are becoming increasingly important in credit underwriting, and larger competitors may have advantages in these areas.
Risks & safety
Palmer Square Capital BDC presents a moderate margin of safety with reasonable financial stability but some leverage concerns. **Liquidity and Solvency:** 1. Available liquidity of $229.5 million provides adequate cushion for operations and new investments 2. Debt-to-equity ratio of 1.52x is within regulatory limits but represents meaningful leverage 3. Cash and short-term investments of $2.9 million is relatively low, requiring active portfolio management for liquidity needs **Valuation Metrics:** 4. Price-to-book ratio of 0.92x suggests trading below net asset value, providing some downside protection 5. Price-to-earnings ratio of 10.4x appears reasonable for a yield-focused investment vehicle 6. Dividend yield of approximately 11.6% is attractive but sustainability depends on portfolio performance **Other Considerations:** 7. Portfolio credit quality appears solid with no current non-accrual investments and focus on senior secured positions 8. Interest coverage ratio of 2.0-2.1x for portfolio companies provides reasonable cushion 9. Monthly NAV disclosure provides transparency but also highlights portfolio volatility
Recent development
Over the past few years, Palmer Square Capital BDC has undergone significant strategic evolution, culminating in its successful IPO in January 2024. The most significant development was the company's transition from a private investment vehicle to a publicly-traded BDC, raising $90 million in the IPO process and quickly deploying these proceeds into secondary loan market opportunities. The company has strategically expanded its investment approach by increasing allocation to private credit investments, which now approach 10% of the portfolio, while maintaining its core competency in liquid syndicated loans. This evolution reflects management's opportunistic approach to capital deployment across market cycles. A major operational milestone was the successful closure of the company's inaugural $400 million CLO (Collateralized Loan Obligation) in May 2024, which provides additional funding flexibility and demonstrates the company's ability to access diverse funding sources. The company has also distinguished itself through enhanced transparency measures, including monthly NAV disclosure, which is uncommon in the BDC space. Recent strategic adjustments include a dividend policy recalibration, with the base dividend reduced from previous levels to $0.36 per share in Q1 2025, reflecting management's conservative approach given current market conditions and rate environment changes. The company has maintained discipline in deal selection, focusing on credit quality over incremental spread pickup, and has positioned itself with substantial liquidity to capitalize on future market opportunities as conditions potentially become more favorable for lenders.
PSBD company profile · for informational purposes only — not investment advice.
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