Janney starts Palmer Square with a Neutral rating, $17.50 fair value estimate

As previously reported, Janney Montgomery Scott initiated coverage of Palmer Square Capital BDC with a Neutral rating and $17.50 fair value estimate. Palmer Square, an externally managed BDC that held its initial public offering in January, primarily buys broadly syndicated loans, or BSLs, but opportunistically underwrites private credit investments and invests in CLOs, the analyst tells investors. It is well capitalized and ended Q4 of 2023 with $260M of dry powder, which positions it well as the leverage loan market rebounds, notes the analyst, who adds that Palmer Square has cumulatively out-earned its dividend through net investment income, or NII.