Seeking Alpha2026. 7. 14.Neutral
Pearl Diver Credit: 7.8% YTM On Preferred Stock Remains Attractive
Pearl Diver Credit has seen its NAV per share decline by 22% in the first five months of 2026, raising concerns about portfolio erosion. I focus on PDCC's term preferred shares (PDPA), which offer an 8% yield and a hard maturity date of December 31, 2029, providing a senior claim and asset coverage protection. Preferred dividends are well-covered by net investment income, but ongoing unrealized losses and NAV stability remain key monitoring points for both common and preferred holders.
