BofA sees balanced risk/reward, starts Palmer Square at Neutral

As previously reported, BofA initiated coverage of Palmer Square with a Neutral rating and $16.50 price target, implying a total return of about 12% for shares of the business development company. The firm thinks the company’s unique strategy of investing in a diverse portfolio of liquid, traded non-investment grade senior secured loans, paired with certain opportunistic investments, can generate attractive risk-adjusted returns, but it thinks the risk/reward is balanced at the current valuation.