Palmer Square Capital Reports Third Quarter 2026 Earnings and Strategic Capital Allocation
Palmer Square Capital (PSBD) reported its third-quarter 2026 financial results, highlighting a net investment income of $0.38 per share. The business development company is currently focusing on disciplined capital allocation, specifically prioritizing the repurchase of $5.2 million in common stock because shares are trading at a discount to net asset value (NAV). To improve operational efficiency, management has successfully refinanced its collateralized loan obligation to lower borrowing spreads and downsized unused credit facility capacity to reduce carrying costs. The firm is also pivoting toward private credit and secondary market purchases, noting that these offer superior risk-adjusted returns compared to the syndicated loan market. Despite a slowdown in transaction timelines from private equity sponsors, Palmer Square Capital maintains a strong liquidity position with leverage reduced to 1.63 times equity and nonaccruals remaining below 1% of total portfolio cost.
Topics: business development company debt refinancing earnings report share buybacks
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