Yield Hunting Part 21: Gladstone Investment And Its 7+% Baby Bonds

  • Gladstone Investment stands out among BDCs for its stability and attractive risk-adjusted yields, especially after the recent sector downturn. GAIN's baby bonds, particularly GAINZ and GAINI, offer compelling yields to maturity near 8% with low duration and credible credit ratings. Moody's-style analysis shows GAIN's fundamentals are solid, with strong profitability, reasonable leverage, and a Baa3-equivalent credit score.