Independent financial research   /   Evidence before inferenceAbout Jeong-Mo Goo
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BDC learning room/Intermediate
BDC / Level 2

Separate earnings, cash and credit.

Rebuild NII coverage, identify noncash PIK, and compare non-accrual exposure on matching denominators.

Before you start

Complete the beginner route or understand BDC structure, market price and basic financial statements.

Four guides · Free · Self-paced. Difficulty is not a professional certification.

  1. 01

    NII and distribution coverage: match the income, denominator and period

    Reconcile regular and total common-distribution coverage without confusing reported NII, issuer-adjusted measures or cash available.

  2. 02

    PIK income: distinguish the contract, the accounting and the cash

    Understand payment-in-kind recognition, two different PIK denominators and a transparent sensitivity that does not claim to be cash earnings.

  3. 03

    Non-accruals at cost and fair value: read the exposure and the mark

    Compare matched non-accrual populations, understand why a fair-value percentage can fall without credit improving, and trace migration.

  4. 04

    BDC NAV and market discounts: separate the valuation from the trading price

    Read common NAV per share, price/NAV and capital transactions without treating a discount as a promised return.

Apply the route.

Complete each guide’s worked exercise. Retain the period, units, source and assumptions with every result. The final exercise asks you to explain what remains unknown.

Route self-check

1. If a supplemental distribution is unknown, the defensible output is:
2. A 100% PIK deduction from reported NII is:
3. If non-accrual fair value falls because an impaired asset is written down, the fair-value exposure ratio may:
4. The denominator in a signed price/NAV discount is:

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