CCAP

CCAP is a middle-market private-credit BDC, and the entire case rests on price versus book. The 10-K discloses NAV of $19.10/share at Q4 2025 and notes the Feb 24, 2026 price of $12.88 was already a 32.6% discount to NAV; at $11.12 today the discount is deeper still — roughly 0.58x book. That is an extreme markdown for a BDC whose leverage (liabilities/equity 1.30x, long-term debt $874M) sits well inside the 1940-Act ceiling and whose loan book is anchored in first-lien and unitranche secured debt. FY2025 diluted EPS of $1.81 against a $11.12 price is a 6.1x multiple, and dividends paid of $67.8M on 36.9M shares (~$1.84/share) imply a yield in the mid-teens that FY2025 earnings roughly covered.

The reason the market is discounting so hard is visible in the trend, and it is not trivial. Net income fell 53% to $34.5M and EPS dropped 24.6%, ROE compressed to 4.9%, and NAV has eroded quarter by quarter from ~$20.30 (Q2 2024) to $19.10. The MD&A confirms the model is floating-rate secured lending to private middle-market borrowers, so a falling-rate environment mechanically pressures net investment income — exactly what the earnings decline reflects. Tellingly, the supplemental dividend has been cut every quarter of 2025, from $0.11 down to $0.05, signaling management is already rationing the payout as spread income fades.