Kayne Anderson BDC initiated with a Neutral at UBS

UBS initiated coverage of Kayne Anderson BDC with a Neutral rating and $17 price target. Kayne Anderson BDC’s credit quality should remain strong given its focus on first lien loans, but expect multiple expansion will be limited by ROE headwinds from lower short-term rates, the analyst tells investors in a research note. UBS sees a 16.6% total return over the next 12 months largely coming from the 11.2% dividend with more modest capital appreciation of 5.4%.