{"id":62354,"date":"2023-09-18T05:38:37","date_gmt":"2023-09-18T09:38:37","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/building-a-balanced-portfolio-with-blackstone-secured-lending-nysebxsl\/"},"modified":"2023-09-18T05:38:46","modified_gmt":"2023-09-18T09:38:46","slug":"building-a-balanced-portfolio-with-blackstone-secured-lending-nysebxsl","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=62354","title":{"rendered":"Building A Balanced Portfolio With Blackstone Secured Lending (NYSE:BXSL)"},"content":{"rendered":"
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Introduction<\/strong><\/h2>\n

Over the coming months, I will have a series of articles discussing how to build a balanced retirement portfolio using Business Development Companies (“BDCs”) common stocks currently yielding almost 12% and their safer notes – baby bonds\/preferred shares with yield-to-maturities ranging from 6.5% to 9.0%.<\/p>\n

This article discusses Blackstone Secured Lending<\/strong> (NYSE:BXSL<\/span>) currently yielding 11% and its 2026 bond\/note with a yield-to-maturity of over 7%. BXSL is for lower-risk investors with an investor-friendly fee structure and 98% of its portfolio of first-lien positions in larger companies (relative to smaller BDCs) that would likely outperform in an extended recession environment. Also, BXSL has a relatively stable NAV with lower amounts of non-accrual investments and an excellent balance sheet of lower-cost flexible borrowings that are 64% unsecured.<\/p>\n

\"Comparing<\/span> <\/picture>
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FINRA, SEC Filings, and BDC Buzz<\/span><\/p>\n<\/figcaption><\/figure>\n

Business development companies invest shareholder capital in privately-owned, small- and medium-sized U.S. companies generating income from secured loans and capital gains from equity positions, much like venture capital or private equity funds.<\/span><\/p>\n

\"How<\/span> <\/picture>
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BDC Buzz<\/span><\/p>\n<\/figcaption><\/figure>\n

Many readers ask where BDC stocks and bonds fit into their overall portfolio. Your portfolio allocations depend on a few factors, including your age, overall risk appetite, investment time frame, and need to access capital.<\/p>\n

Historically, investment advisors used the \u201c100 minus your age\u201d axiom to estimate the stock portion of your portfolio. However, that was likely when the average life expectancy was 65 to 70 compared to the current 85 or higher depending on many factors, and has been revised to 120.<\/p>\n