Barings BDC, Inc. (BBDC) SEC Filings & Earnings Calls

Credit deterioration in portfolio

“As of June 30, 2026, we had 11 portfolio companies with investments on non-accrual, the aggregate fair value of which was $13.7 million, which comprised 0.6% of the total fair value of our portfolio, and the aggregate cost of which was $38.3 million, which comprised 1.5% of the total cost of our portfolio.” · word for word

Declining investment yield

“the weighted average yield on the principal amount of our outstanding debt investments, other than non-accrual debt investments, decreased from 9.8% as of June 30, 2025 to 9.4% as of June 30, 2026.” · word for word

NAV per share decreased $0.08 due to net unrealized depreciation of $29.4 million.

“Net unrealized depreciation totaling $29.4 million, primarily driven by unrealized depreciation of $21.4 million related to realized gain on termination of Sierra credit support agreement.” · word for word

Credit quality deterioration

“Non-accrual assets increased from 0.7% to 1.0% of fair value, and three new companies were placed on non-accrual in Q1 2026.”

Portfolio yield compression

“Weighted average yield on debt investments decreased from 9.9% to 9.4% year-over-year.”

Net realized losses of $10.8M in Q1; credit or fundamental performance drove $8.7M of unrealized depreciation.

“Net realized gains (losses) $(10.8) million... net unrealized depreciation on the Company’s current portfolio of $17.5 million was driven primarily by the credit or fundamental performance of investments of $8.7 million.”

SIC Credit Support Agreement Contingent Liability

“Barings has agreed to provide credit support to the Company in the amount of up to $100.0 million relating to the net cumulative realized and unrealized losses on the acquired Sierra Income Corporation investment portfolio over a 10-year period.” · word for word

Declining portfolio yield and net investment income

“Weighted average yield on performing debt decreased from 10.2% (Dec 2024) to 9.5% (Dec 2025); NII declined from $33.6M to $28.0M sequentially”

Net realized losses on investments

“Net realized losses of $5.2M in Q4 2025, including $7.1M on loan repayments and $4.5M on principal payments/sales”

Concentration in litigation finance investment

“$2.9M additional debt investment in a portfolio company providing financing to plaintiff law firms engaged in mass tort litigation”

Credit market disruption risk

“During these periods of disruption, general economic conditions deteriorated with material and adverse consequences for the broader financial and credit markets, and the availability of debt and equity capital for the market as a whole, and financial services firms in particular, was reduced significantly.” · word for word

Portfolio company default risk

“Many of the portfolio companies in which we make investments may be susceptible to economic slowdowns or recessions and may be unable to repay the loans we made to them during these periods.” · word for word

Interest rate risk

“The debt capital that will be available to us in the future, if at all, may be at a higher cost and on less favorable terms and conditions than what we currently experience, including being at a higher cost in rising rate environments.” · word for word

Geopolitical risk

“Geopolitical conflicts, and resulting market volatility, could also adversely affect our business, operating results, and financial condition.” · word for word

Tariff risk

“Changes to U.S. tariff and import/export regulations may have a negative effect on our portfolio companies and, in turn, harm us.” · word for word

Net unrealized depreciation of $8.8M driven by credit performance and market moves.

“Net unrealized depreciation totaling $8.8M, primarily from credit/fundamental performance of investments ($13.9M).”

Leverage increased to 1.40x debt-to-equity from 1.34x QoQ.

“Debt-to-equity ratio 1.40x as of Sep 30, 2025 vs 1.34x as of Jun 30, 2025.”

Credit quality deterioration

“Non-accrual assets fair value increased from $8.0M to $20.4M, and net realized losses on investments were $27.2M for 9M 2025.”

Portfolio yield compression

“Weighted average yield on debt investments decreased from 10.6% to 9.8% YoY.”