Palmer Square Capital: Reports Year-End 2025 Net Asset Value Per Share

Downer

NEWS

Item 8.01 Other Events.

Management’s unaudited estimate of the net asset value per share of Palmer Square Capital BDC Inc.’s common stock as of December 31, 2025 was $14.83.Palmer Square BDC SEC Filings 1-15-2026

ANALYSIS

Worth Noting

We have just added this latest key metric from PSBD to the BDC NAV Change Table.

The BDC’s NAVPS has dropped (3.6%) in 3 months.

That’s twice the percentage drop in the IIIQ vs the IIQ and the worst performance since the IQ 2025 when NAVPS dropped (3.9%).

On a twelve-month basis, the metric is down (10.1%) and over 5 years by (26.4%).

VIEWS

Not Good

We have no other context or information, just the SEC filing above.

Nonetheless, this is a worrisome development for the BDC, which operates in the upper ranges of the upper mid-market (UMM).

We’ve Got Questions

We’ll need to understand when IVQ 2025 results come out, whether this drop in book value per share reflects poor performance at a few portfolio companies or an across-the-board fall in valuations.

We’ve heard that the leveraged loan market remains strong, with demand for the larger loans, like Hologic, very strong.

So, a general weakness is unlikely to be the reason for this NAVPS step down, but we’re keeping an open mind.