Bitcoin’s price has shown resilience by staying just above the $62,000 mark, despite uncertainty in the market.

Minor fluctuations have kept the price within a predictable range, while traders and investors await a potential breakout.

The key resistance level remains at $65,000, a psychological threshold that could signal new upward momentum if breached.

Investors are closely watching market indicators, especially with the Federal Reserve’s next inflation gauge release expected to impact market sentiment.

Ethereum, along with other altcoins such as Solana and XRP, has also experienced slight gains, suggesting a cautiously optimistic outlook in the market.

Ethereum saw a modest increase of 1%, reaching $2,440.65, while Solana rose by 1.51% to $141.91. XRP also gained 1.51% to $0.5352.

Celestia, Dogwifhat, Sui top gainers

Celestia has emerged as one of the top gainers in the past 24 hours, with a 14% surge.

Other cryptocurrencies such as Dogwifhat and Sui have also posted gains of 16% and 11%, respectively.

On the other hand, Fantom has suffered a 5.81% loss, leading the pack among today’s biggest losers.

Helium and FTX Token also declined, with losses of 3.87% and 2.54%, respectively.

While the market remains cautiously optimistic, these mixed performances indicate that investors are still navigating through a period of uncertainty.

Fidelity’s ongoing investigation into a data breach affecting 77,000 customers further complicates market dynamics.

In other crypto news

A Nigerian court has rejected the bail request for Tigran Gambaryan, a Binance executive, citing health concerns. Gambaryan, who arrived at the court in a wheelchair, has been suffering from a herniated disk, making it difficult for him to walk.

His lawyer, Mark Mordi, pleaded for bail to allow Gambaryan to seek medical treatment, but the court ruled that his condition did not warrant release from custody. Instead, Judge Emeka Nwite directed that Gambaryan receive medical care within the prison facility.

Binance founder Changpeng ‘CZ’ Zhao is set to make his first public appearance at the Binance Blockchain Week in Dubai on October 30-31, following his release from jail earlier this year. Zhao had served a four-month prison sentence for violating the Bank Secrecy Act (BSA) by failing to implement adequate know-your-customer (KYC) protocols at Binance.

Shiba Inu (SHIB) has recorded an astonishing 4.1 trillion trading volume, driven primarily by whale activity. The surge has raised questions about the potential for a price breakout.

SHIB is currently priced between $0.00001616 and $0.00001717, with resistance levels at $0.00002193 and $0.00002640. If whale activity continues, SHIB could break these levels and see significant price gains.

Meanwhile, US federal prosecutors are seeking an 18-month jail sentence for Heather Morgan, a rapper known as Razzlekhan, for her involvement in laundering Bitcoin stolen in the 2016 Bitfinex hack.

Morgan, who pleaded guilty to money laundering in August 2023, played a key role in assisting her husband, Ilya Lichtenshtein, in laundering approximately 120,000 Bitcoin, now valued at $7.2 billion.

While prosecutors are asking for a lighter sentence due to her cooperation, her involvement in the crime remains significant. Morgan’s sentencing is scheduled for November 15, following Lichtenshtein’s sentencing the day before.

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The gaming industry has long been a playground for innovation and technological advancement.

However, a new trend is making waves, potentially transforming the way games are created, experienced, and monetized. 

Text-to-Game technology is quickly becoming a driving force behind this transformation, enabling anyone to generate games using simple text prompts. 

This evolution, powered by artificial intelligence (AI) and natural language processing (NLP), allows for seamless game creation, making development more accessible and cost-effective for studios and independent developers alike.

According to Grand View Research, the global gaming market was valued at $249.55 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 13.1%, reaching $665.77 billion by 2030. 

As this market continues to expand, Text-to-Game technology is likely to play a critical role in its development, offering unparalleled opportunities for developers and players alike.

What is Text-to-Game technology?

At its core, Text-to-Game technology is a combination of advanced AI, machine learning, and procedural content generation (PCG).

The concept allows users to input natural language commands—also known as prompts—which are then translated into fully functioning game elements such as characters, environments, and gameplay mechanics. 

This groundbreaking development democratizes game creation, removing the technical complexities associated with coding and design.

How it works?

Text-to-Game relies heavily on existing AI technologies, particularly NLP and PCG. NLP allows the system to understand and interpret human language, while PCG uses algorithms to generate game content like terrain, levels, and assets in real time. 

Together, these technologies allow users to describe their desired game world, and within seconds, the AI translates these instructions into tangible, interactive elements. 

For example, a user might input, “Create a forest with towering trees, inhabited by mystical creatures,” and the AI would generate a playable game world based on this prompt.

EA’s user-generated games 

One of the early adopters of this technology is Electronic Arts (EA). In a recent demonstration, EA showcased its “Imagination to Creation” concept, which allows players to build gaming worlds simply by describing them in natural language. 

In the demo, users transformed cardboard boxes into intricate, multi-level game environments complete with characters, obstacles, and gameplay mechanics. 

This technology is powered by EA’s proprietary dataset, which includes millions of lines of code, trillions of telemetry events, and thousands of 3D assets, allowing the system to respond dynamically to user input.

Traditional game development challenges

Before the advent of Text-to-Game technology, game development was a resource-intensive process, particularly for AAA titles. 

For instance, Red Dead Redemption 2 (2018) had a production budget of $540 million, and Grand Theft Auto V (2013) cost $265 million to develop and market. 

Additionally, the typical development cycle for AAA games is four to five years, requiring large teams and substantial financial investment.

This traditional model not only demands significant time and resources but also presents substantial risks.

 Delays, mismanagement, or design flaws can lead to costly failures, as seen with the highly anticipated Cyberpunk 2077 (2020), which had a budget of $316 million but faced major backlash due to technical issues upon release.

How Text-to-Game can change this?

Text-to-Game technology has the potential to streamline the development process by reducing the need for large teams and lengthy development cycles.

With AI handling the bulk of asset creation, logic design, and world-building, studios can significantly lower production costs and shorten development timelines. 

This, in turn, allows developers to focus on polishing gameplay and enhancing user experience.

Cost savings for developers

According to industry data, automated asset creation can reduce production costs by up to 50%. For instance, game developers often spend up to 60% of their resources on creating assets such as characters, textures, and environments. 

By leveraging AI-powered generation tools, Text-to-Game technology eliminates the need for manual asset creation, allowing for faster prototyping and iteration.

Smaller studios and independent developers also stand to benefit greatly from these cost reductions.

With lower entry barriers, indie developers can now compete with larger studios, creating high-quality games without requiring the massive budgets that AAA titles typically demand.

The growing gaming market

The global gaming market’s growth is poised to benefit from this technological advancement. In 2022, the market reached $249.55 billion, and mobile gaming accounted for over 45% of the total market. 

The rise of mobile gaming, coupled with innovations like Text-to-Game, has created opportunities for developers of all sizes to tap into an increasingly diverse player base.

Moreover, the indie game market continues to grow at an annual rate of 10%, and Text-to-Game technology could further accelerate this trend by empowering smaller studios to produce high-quality games faster and at a lower cost.

Current capabilities

Text-to-Game technology is still in its infancy, but it already boasts several impressive capabilities:

• Environment generation: Users can create complex 3D landscapes with simple prompts.
• Basic game mechanics: The AI can generate rules, objectives, and gameplay systems.
• Character creation: From NPCs to fully playable avatars, the technology can generate diverse character models.

But there are limitations

However, there are some limitations to the current technology:

1. Processing power: Real-time game generation requires immense computational power, which can limit accessibility for smaller developers.
2. Consistency: Generated assets and environments sometimes lack the polished consistency that manual design can achieve, requiring additional fine-tuning.
3. Intellectual property: The use of generative AI in game creation raises concerns about copyright and IP issues, as some generated content may inadvertently mimic existing designs.

The role of AI in modern game development

PCG is one of the most established applications of AI in gaming. Games like Minecraft and No Man’s Sky have successfully used PCG to create endless, unique worlds that keep players engaged for extended periods. Text-to-Game technology expands on this, offering even more control and customization.

Another critical application of AI in gaming is improving NPC behavior. Text-to-Game can create NPCs that react dynamically to player actions, provide dialogue, and serve as integral parts of the game’s story. These characters can offer unprecedented realism, adaptability, and emotional depth.

Democratizing game development

The most significant impact of Text-to-Game technology is its potential to democratize game development. In the past, only developers with advanced coding skills could create games.

However, this technology lowers the technical barrier, enabling anyone with an idea to bring it to life through simple text commands. 

This democratization opens the door for a new wave of independent creators who can experiment and innovate without needing large development teams or significant budgets.

Industry adoption

Leading companies such as Unity Technologies, Epic Games, and NVIDIA are already investing in AI-driven game development tools.

These companies have integrated AI-powered asset generation into their engines, and they have demonstrated procedural content generation capabilities through real-world case studies.

Enhanced asset generation

In the coming years, we can expect Text-to-Game technology to evolve, offering:

• Higher-quality assets: More detailed 3D models, textures, and animations.
• Advanced game logic: Sophisticated physics engines and gameplay mechanics will enable developers to create more complex games.

AI-powered collaboration

The future may also see increased collaboration between professional developers and independent creators.

As AI-driven tools become more powerful, the gaming community could generate new intellectual properties that evolve into major titles, blurring the lines between traditional AAA games and user-generated content.

Text-to-Game technology is still in its early stages, but its potential to revolutionize the gaming industry is undeniable.

By simplifying the game development process, reducing costs, and enabling greater creative freedom, this technology empowers both large studios and independent developers to bring their ideas to life more efficiently than ever before.

As the global gaming market grows, innovations like Text-to-Game will continue to shape the future of game development, offering players more diverse and immersive experiences.

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The S&P 500 and Dow Jones Industrial Average surged to new highs on Friday, buoyed by strong earnings reports from major banks, kicking off a positive start to the third-quarter earnings season.

The S&P 500 rose 0.5%, while the Dow climbed 300 points, or 0.7%. Meanwhile, the Nasdaq Composite gained 0.3%, despite a 7% drop in Tesla shares following a disappointing robotaxi event.

All major indices are on track for weekly gains. The S&P 500 is up 1%, set for its fifth consecutive week in the green. The Dow has risen 0.9%, and the Nasdaq is up 1.1%.

Strong performance by banks

Shares of major banks rose on Friday, following robust earnings results for the third quarter. 

Shares of JP Morgan Chase rose 4% after the company reported a rise in profit and revenues, which beat analysts’ expectations. 

Wells Fargo’s stock gained 5% on stronger-than-expected profits. Shares of Bank of America also surged more than 3%. 

The outlook may signal that a trend of lower net interest income may be starting to emerge in favor of the banks, Sterling said. 

The US Federal Reserve cut interest rates in September for the first time in four and a half years by 50 basis points. 

US producer prices index steady

The producer price index, which gives a measure of wholesale inflation in the US, remained unchanged in September and was below 0.1% expected by analysts. 

The producer price index helped dissipate some concerns about hotter inflation in the US after the CPI index came in above expectations earlier this week. 

Steady wholesale inflation in the US could prompt the US Fed to go ahead with a 25-bps rate cut in its November meeting. 

Tesla slides

Shares of Tesla dropped as much as 8% on Friday after the electric vehicle maker launched its long-awaited robotaxi. 

However, the company did not disclose any details about how fast it can ramp up production or manage regulatory challenges. 

“We were overall disappointed with the substance and detail of the presentation,” Morgan Stanley said on the heels of the event. “As such, we anticipate TSLA to be under pressure following the event.”

Meanwhile, shares of renewable energy and infrastructure solutions provider, Gibraltar Industries fell nearly 6% on Friday. Shares tumbled on weak earnings performance for the third quarter. 

Oil prices fall

Brent and West Texas Intermediate crude oil prices fell on Friday, but are on course to end the week with gains once again. 

Oil prices had gained more than 3% on Thursday, triggered by supply disruptions in the US and ongoing geopolitical tensions in the Middle East. 

However, traders resorted to profit-taking on Friday as Brent prices hovered near $80 per barrel. 

Investors will continue to monitor the situation in the Middle East as the oil market waits for the impending Israel’s retaliation against Iran. 

Experts believe that it is not in Israel’s interest to target Iran’s oil facilities as US President Joe Biden has urged Israel to avoid such an instance. 

In case Iran’s oil facilities are targeted, the world could lose about 4% of its crude oil supply. Prices could rise in such a scenario. 

At the time of writing, Brent prices were down 0.4% at $79.03 per barrel, while WTI was 0.2% lower at $75.47. 

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Boeing Co. announced late Friday that it plans to cut approximately 10% of its workforce, a move that surprised markets as the aerospace and defense giant continues to face significant financial challenges.

The company warned investors of a larger-than-expected third-quarter loss and lower revenue than Wall Street had predicted.

CEO Ortberg explains the move

Boeing’s Chief Executive, Kelly Ortberg, stated that the business is in a “difficult position” and emphasized the need for “tough decisions” to restore the company’s competitive edge.

“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg said in a statement.

These layoffs will impact employees across the company, including executives and managers, as Boeing tries to adjust its structure to cope with ongoing issues.

The company had about 171,000 employees, primarily based in the US, as of its latest filing.

Impasse in machinists strike adds pressure

The decision comes on the heels of a labor strike that has entered its fourth week. Negotiations with striking machinists in Washington state reached an impasse earlier this week.

According to S&P Global Ratings, the strike is costing Boeing approximately $1 billion per month, adding to the company’s financial strain.

Ortberg acknowledged that addressing the business’s problems will require structural changes to maintain competitiveness in the long term.

The strike further complicates Boeing’s recovery, as the company faces pressure from multiple fronts, including operational disruptions and financial difficulties.

Weaker-than-expected Q3 performance

Boeing’s preliminary third-quarter earnings report paints a grim picture.

The company forecasted revenue of $17.8 billion, far below the analyst consensus of $18.49 billion.

It also expects to report a GAAP loss of $9.97 per share and a negative operating cash flow of $1.3 billion for the quarter.

This significant loss contrasts sharply with the anticipated loss of $1.61 per share, according to FactSet analyst estimates.

At the end of the quarter, Boeing had $10.5 billion in cash on hand, but the ongoing challenges are creating uncertainty for the company’s future.

The company plans to release its full third-quarter results on October 23, where more details on its financial situation will be disclosed.

Project delays and production cuts compound woes

Adding to Boeing’s woes, the company announced that it is delaying the delivery of its 777-9 commercial jet until 2026 and its 777-8 freighter until 2028.

These delays will result in a pretax earnings charge of $2.6 billion. Boeing also decided to end production of one of its freighter jets, signaling further disruptions to its commercial aircraft business.

Following the news, Boeing shares fell nearly 2% in extended trading on Friday, after finishing the regular trading session up by 3%.

Credit ratings under review, bond downgrades looming

Boeing’s bond rating is also under pressure.

S&P Global Ratings put Boeing’s bonds under review for a possible downgrade earlier this week, making it the third major credit-rating agency to raise concerns about Boeing’s ability to meet its financial obligations.

Moody’s and Fitch have already downgraded Boeing’s bonds to the lowest level of investment grade, leaving the company on the brink of a speculative-grade, or “junk,” bond rating.

A downgrade to junk status would severely impact Boeing’s ability to borrow money at a time when the company is trying to turn its business around.

It would also exclude Boeing’s bonds from the portfolios of pension funds and other institutional investors that are only allowed to hold investment-grade debt.

Stock performance and broader market comparison

Boeing’s stock has not performed well in 2024, with shares down by 42% this year.

This contrasts sharply with the S&P 500 index, which has gained approximately 22% over the same period.

The company’s financial troubles, coupled with production delays, a labour strike, and the threat of a bond downgrade, have weighed heavily on investor sentiment.

As Boeing prepares to release its full quarterly results on October 23, investors will be closely watching for further developments in the company’s efforts to address its challenges.

The upcoming layoffs, ongoing strike, and delayed aircraft deliveries are all factors that could shape Boeing’s near-term outlook.

For now, the aerospace giant faces an uphill battle to restore its financial health and competitive position in the global market.

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Apollo Global Management (APO) stock has done well this year, as the company’s role in the private credit and insurance industries has improved. It has risen by 50%, beating the S&P 500 and Nasdaq 100 indices, which have risen by less than 25%.

Apollo’s gains continued recently after the management inked a $25 billion deal with Citigroup, one of the top American banks. The deal will see the two companies finance various debt opportunities, mostly in the United States. 

Apollo also aims to double its assets in the next few years, a move that will see it manage over $1.3 trillion, joining Blackstone, the biggest alternative asset manager in the industry. 

Apollo’s stock has been spectacular, rising by over 533% in the last five years. As such, a $1,000 investment in the company a decade ago would now be worth over $6,300, excluding dividends.

KKR’s is a big name in P/E and credit

KKR is often an overlooked name in the private equity industry yet it is one of the best performers. Its stock has surged by over 556% in the last decade and 63% this year. 

Started by Henry Kravis, Jeremy Kohlberg, and George Roberts in 1976, it has become the fourth-biggest player in the industry after Blackstone, Brookfield, and Apollo with over $601 billion in assets. It is the second-biggest company in market cap, with its $118 billion valuation.

It has done that with minimal acquisitions. Apollo’s current form happened with its $11 billion Athene acquisition, while Blackstone has bought several companies for its private equity and real estate businesses.

KKR operates in five key industries like private equity, real assets, credit and liquid strategies, capital markets, and principal activities. It then makes money through fees, incentives, and carried interest.

KKR’s business is doing well

The most recent financial results show that KKR’s revenues rose to $4.17 billion in the second quarter, an increase from the $3.62 billion it made in the same period last year.

Most of this revenue came from its insurance business, which had over $2.6 billion in revenues followed by its asset management and strategic holdings. Its revenue in the year’s first half rose to $13.8 billion, up from $6.7 billion last year. 

While its net income dropped to $667 million in the second quarter, its strong performance in the first quarter saw its first half profit rise to $1.35 billion.

KKR’s performance happened after the company continued its strong fundraising. It raised $32 billion in assets in the second half and over $108 billion in the last twelve months. These fundraisings are important because most of its revenue comes from its asset management fees.

KKR finished the last quarter with over $108 billion in dry powder, or funds it has raised, but has not invested. 

Read more: Apollo Global stock: private credit giant forms a risky pattern

KKR is more overvalued than Apollo

While KKR has done better than Apollo, there are reasons to believe that the latter will catch up with time. 

First, Apollo is a relatively cheaper company, trading with a price-to-earnings ratio of 15, much lower than KKR’s 31. Its forward 1-year P/E ratio of 19 is also lower than KKR’s 28. Therefore, there are chances that, with time, Apollo will close the gap, because of its strong market share in the credit industry.

Second, Apollo is expected to have faster growth than KKR in the longer term. It has a forward revenue estimate of 16%, higher than KKR’s 11.7%. Its forward EBITDA growth of 54 is higher than KKR’s 14%.

Third, Apollo has a higher dividend yield than KKR. It has a forward yield of 1.34% compared to Apollo’s 0.53%. 

Additionally, Apollo has better profit metrics than KKR. Its TTM revenue per share is $44 compared to KKR’s $30.2, while its net income of $5.7 billion is higher than Apollo’s $3.8 billion.

Read more: Ares Management stock has soared, but there’s 1 key risk

Apollo vs KKR: better buy?

Apollo and KKR are some of the best private equity and private credit companies in the industry. While their assets have surged in the past few years, they have more runway for growth in the long term.

KKR’s stock has outperformed Apollo in the last decade. Over time, I suspect that APO will fill the valuation gap. Therefore, there is a possibility that Apollo will do better over time.

The risk, however, is that the two companies have become overbought, pointing to a short-term reversal. Apollo’s Relative Strength Index (RSI) metric has risen to 80 on the daily chart. KKR’s metric has moved to 70.

The next key catalysts for the two companies will be when they publish their next financial results. KKR will go first on November 1 followed by Apollo on November 5. In most cases, stocks tend to have some significant moves after earnings.

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The 2024 hurricane season is underway, and experts are forecasting that it will be severe, as the frequency and intensity of storms continue to increase due to climate change.

Safety is, of course, the top priority when preparing for hurricanes. However, many investors are also keenly aware of how these natural disasters can affect the stock market.

It’s fairly well known that big-box home improvement retailers like Home Depot and Lowe’s tend to see a surge in sales following major storms, as was the case after Hurricane Harvey in 2017.

But beyond these retail giants, there are several lesser-known stocks with strong potential for growth, both during the present hurricane season and in the longer term.

Let’s explore a few of these companies.

Builders FirstSource (BLDR)

Builders FirstSource is one of the largest U.S. suppliers of building products, components, and services for construction, repair, and remodelling contractors.

Unlike Home Depot and Lowe’s, which sell to both consumers and contractors, Builders FirstSource exclusively serves the professional market.

The company is positioned to benefit from increased demand for construction materials and services during the rebuilding process in the wake of a major storm.

There is also a nationwide shortage of more than 4 million homes, giving Builders FirstSource a strong outlook even without factoring in hurricane risks, as builders are likely to stay busy for the foreseeable future.

Crawford & Company (CRD.B)

Crawford & Company contracts with insurers to manage and process claims for property damage and business interruptions, which spike significantly after major storms.

The increased demand for claims adjusters during such times could bolster Crawford’s financial performance.

The company has also been at the forefront of adopting emerging technologies, including using aerial drones to photograph storm-damaged properties, allowing adjusters to begin working on claims earlier.

Gulf Island Fabrication (GIFI)

There are thousands of offshore oil platforms in the Gulf of Mexico, and when they are damaged in storms, someone has to fix them.

Gulf Island Fabrication builds, repairs, and maintains steel structures and other components used in offshore rigs, among other services for the energy and industrial sectors.

Damaged platforms and coastal facilities can take years to repair or replace, so the company can stay busy well beyond the immediate recovery phase.

Legacy Housing Corporation (LEGH)

Legacy Housing builds, sells, and finances manufactured homes and tiny houses, primarily in rural areas.

Manufactured homes offer a fast and cost-effective way to address the housing needs of displaced residents, positioning Legacy favorably in the aftermath of a storm.

Haverty Furniture Companies (HVT)

Haverty Furniture is a large retail chain that sells residential furniture and accessories, primarily in the South.

When homeowners need to replace furniture that gets damaged or destroyed in a storm, furniture retailers often see sales rise.

Because Haverty has locations throughout regions that face the highest risk of hurricanes, the company is well-situated for steady business in the years ahead.

Great Lakes Dredge & Dock Corporation (GLDD)

Great Lakes Dredge & Dock Corporation provides dredging services, which include maintaining and deepening shipping channels and coastal protection projects.

Hurricanes often cause significant erosion and sediment displacement in coastal and harbor areas, increasing the need for dredging services to restore navigable waterways and protect coastlines.

This boosts demand for Great Lakes Dredge & Dock’s services​.

Quanta Services (PWR)

Quanta Services offers specialty contracting services, including infrastructure solutions for the electric power, oil and gas, and telecommunications industries.

Hurricanes frequently cause widespread damage to electrical grids and telecommunications infrastructure.

Quanta Services is likely to see an uptick in demand for its repair and rebuilding services as utilities and telecom companies work to restore service​.

As we navigate increasingly turbulent weather patterns, it is essential for investors to consider how natural disasters impact the stock market and the broader economy.

The companies highlighted in this article represent a diverse array of industries that are crucial in the wake of hurricanes, setting them up for success in a future where rebuilding and resiliency become recurring themes.

These stocks also have strong fundamentals that extend beyond their direct involvement in hurricane recovery.

Their roles in addressing broader infrastructural and housing needs, coupled with their innovative approaches to emerging challenges, make them good candidates for sustained growth.

(Peter Ricchiuti is a Finance Professor at Tulane University’s A.B. Freeman School of Business. Views are his own.)

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The Blackstone Secured Lending Fund (BXSL) stock has done modestly well this year, rising by 7.20%. It has underperformed the market, with the S&P 500, Nasdaq 100, and Dow Jones rising to their all-time highs. These indices have risen by over 13% this year. 

What is the Blackstone Secured Lending Fund?

BXSL is one of the biggest Business Development Corporations (BDC) in the US with a market cap of over $5.9 billion. 

As a BDC, the company’s strategy is to provide financing in terms of credit to companies in the US.

The BDC industry has boomed in the past few years as tighter regulations in the banking sector have pushed many companies to the non-banking sector.

Another benefit for BDCs is that they usually have preferential taxation since they don’t pay corporate income tax on their earnings. This is a big issue since the standard corporate tax in the US stands at 21%.

BDCs must distribute about 90% of their taxable income through dividends, which makes most of them good income plays.

BXSL mostly focuses on first lien debt, which is usually the most secure in a company since these holders are usually the first to receive payments. They also receive the first priority when a company goes bankrupt. 

BDCs are also required to have a diversified portfolio. In BXSL’s case, most of its portfolio companies are in the software industry. They are then followed by companies in the healthcare, professional services, commercial services, and insurance.  92% of all companies in its portfolio are in the United States, followed by Europe, and Canada. 

Some of the biggest companies in the fund are Medallia, United Veterinary Care, Guidehouse, Stamps.com, Bazaarvoice, and Cambium Learning Group. 

BXSL has done well

BDC companies like BXSL have done in the past few years, helped by the strong demand for credit and high interest rates in the US and other countries.

Higher rates are usually beneficial to firms like BXSL because their financing tends to be variable. 98.8% of its investments are floating rate debt, with $11.3 billion being at fair value.

In this case, its total revenue has risen from $149 million in 2019 to over $1.14 billion in the last financial year. 

Its annual profit has also continued doing well, rising from $106 million to $612 million in 2023, and $708 million in the last financial year.

Therefore, BDCs could expect their momentum to start slowing down now that rates are coming down. Fortunately, analysts expect that the downward trend of these loans will be slower because of the stubbornly high inflation.

The other benefit for BXSL is that the US has avoided a hard landing, which would have led, in theory, to a wave of bankruptcies, as we saw in 2008/9.

BXSL and other firms in the industry would suffer if there is a significant increase in bankruptcies in the US. While it mostly offers first lien loans, it would have a big haircut if this happened.

The most recent results showed that its net investment income rose to $173 million, while its net income jumped to $196 million. 

The results also showed that BXSL’s non-accrual rate rose to 0.3% at cost and 0.2% at fair value. This is a good number compared to other companies in the BDC industry. For example, Ares Capital has a 0.7% figure at fair value, while Main Street Capital, Blue Owl, and Capital Southwest have between 1.2% and 1.9%. 

The non-accrual rate is an important figure when looking at BDCs because it refers to the percentage of loans where a borrower is not making interest. It is calculated by dividing the value of the non-accrual loans with the total loan portfolio and multiplying it by 100.

Looking at its balance sheet, we see that BXSL’s cash has jumped to a record high of $291 million, while the long-term debt has risen to $6 billion. 

This trend is set to change after the company announced plans to raise $400 million in unsecured notes due in 2028.

Is BXSL stock a good buy?

BXSL has been one of the best-performing BDCs in the past few years. It has a good record of paying dividends. For example, it paid a dividend of $0.50 in the second quarter of 2021 and $0.77 in the last quarter, a 54% increase. 

Also, BXSL’s growth in NAV per share has risen by $15.9 since inception, moving from $25 in 2018 to $40. 

The fund’s annualised is about 11.6%, which is a relatively good number. It also has a good dividend yield of about 11%, which is higher than other companies. 

BXSL has also outperformed other companies in the industry. Its three-year return was 47%, higher than S&P 500’s 38% and ARCC and OBDC’s 36% and 44%. This performance makes it a good investment for fixed income investors. 

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