BCP Investment Corp Bonds Carry 680 bps OAS, Widest in BDC Sector
BCIC•BCP Investment Corp bonds carry a weighted average option-adjusted spread of 680 basis points, the highest among 41 BDCs in a sample of 884 bonds, compared with 150–200 bps for larger peers. This divergence reflects growing investor risk premiums on smaller private credit lenders due to rising borrower stress.
1. Weighted Average OAS Rankings
LSEG data shows BCP Investment Corp at the top with a weighted average option-adjusted spread of 680 basis points. Prospect Capital follows at 449 bps, Trinity Capital at 403 bps and Fidus Investment at 392 bps, highlighting a stark risk premium gap.
2. Spread Widening Trends
Year-to-date, Trinity Capital’s OAS widened by 140 bps, Fidus by 92 bps and Prospect Capital by 85 bps. Mid-tier funds such as BlackRock TCP saw a 40 bps rise, while Golub Capital, Blue Owl and Goldman Sachs BDC experienced increases between 20 and 31 bps.
3. Market Dynamics and Implications
Investors are increasingly selective, pricing smaller lenders for higher credit and funding risk due to prolonged elevated interest rates and rising borrower stress. Continued dispersion may intensify if downgrades occur or if sector exposures become more volatile, affecting funding costs and yields.
