BBDC vs. PSEC

Last updated Jun 13, 2026

BBDC (Barings BDC, Inc.) and PSEC (Prospect Capital Corporation) are both stocks. Both are in the Financial Services sector — BBDC in Credit Services, PSEC in Asset Management. Over the past 5 years, BBDC returned 6.45%/yr vs -13.87%/yr for PSEC. At a 0.48 correlation, their price movements are largely independent.

Performance

BBDC vs. PSEC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Barings BDC, Inc. (BBDC) and Prospect Capital Corporation (PSEC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BBDC achieves a -2.86% return, which is significantly higher than PSEC's -3.27% return.

BBDC

• 1D: 0.00%
• 1M: 0.43%
• YTD: -2.86%
• 6M: -1.25%
• 1Y: 4.66%
• 3Y*: 14.63%
• 5Y*: 6.45%
• 10Y*: —

PSEC

• 1D: 1.32%
• 1M: 7.59%
• YTD: -3.27%
• 6M: -2.63%
• 1Y: -14.85%
• 3Y*: -16.85%
• 5Y*: -13.87%
• 10Y*: 0.41%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BBDC vs. PSEC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
BBDC Barings BDC, Inc.	-2.86%	8.84%	23.86%	18.53%	-18.59%	29.31%	-3.48%	20.40%	-9.56%
PSEC Prospect Capital Corporation	-3.27%	-28.86%	-18.16%	-4.13%	-8.61%	70.00%	-3.54%	13.83%	-5.06%

Correlation

The correlation between BBDC and PSEC is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (3Y) Calculated over the trailing 3-year period	0.47
Correlation (5Y) Calculated over the trailing 5-year period	0.53
Correlation (All Time) Calculated using the full available price history since Aug 3, 2018	0.48

The correlation between BBDC and PSEC has been stable across timeframes, ranging from 0.47 to 0.53 - a consistent structural relationship.

Fundamentals

EPS BBDC : $0.66 PSEC : -$0.28
PS Ratio BBDC : 5.06 PSEC : 5.20
Total Revenue (TTM) BBDC : $174.30M PSEC : $151.90M
Gross Profit (TTM) BBDC : $149.47M PSEC : -$59.07M
EBITDA (TTM) BBDC : $90.27M PSEC : -$94.23M

Return for Risk

BBDC vs. PSEC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BBDC

BBDC Risk / Return Rank: 48
BBDC Sharpe Ratio Rank: 51
BBDC Sortino Ratio Rank: 43
BBDC Omega Ratio Rank: 42
BBDC Calmar Ratio Rank: 51
BBDC Martin Ratio Rank: 51

PSEC

PSEC Risk / Return Rank: 20
PSEC Sharpe Ratio Rank: 21
PSEC Sortino Ratio Rank: 20
PSEC Omega Ratio Rank: 21
PSEC Calmar Ratio Rank: 20
PSEC Martin Ratio Rank: 18

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BBDC vs. PSEC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Barings BDC, Inc. (BBDC) and Prospect Capital Corporation (PSEC). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	BBDC	PSEC	Difference
Sharpe ratio: Return per unit of total volatility	0.22	-0.50	+0.72
Sortino ratio: Return per unit of downside risk	0.44	-0.54	+0.98
Omega ratio: Gain probability vs. loss probability	1.05	0.94	+0.12
Calmar ratio: Return relative to maximum drawdown	0.33	-0.63	+0.96
Martin ratio: Return relative to average drawdown	0.73	-1.13	+1.86

BBDC vs. PSEC - Sharpe Ratio Comparison

The current BBDC Sharpe Ratio is 0.22, which is higher than the PSEC Sharpe Ratio of -0.50. The chart below compares the historical Sharpe Ratios of BBDC and PSEC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

BBDC vs. PSEC - Drawdown Comparison

The maximum BBDC drawdown since its inception was -48.45%, smaller than the maximum PSEC drawdown of -61.51%. Use the drawdown chart below to compare losses from any high point for BBDC and PSEC.

Drawdown Indicators

	BBDC	PSEC	Difference
Max Drawdown Largest peak-to-trough decline	-48.45%	-61.51%	+13.06%
Max Drawdown (1Y) Largest decline over 1 year	-12.28%	-27.04%	+14.76%
Max Drawdown (3Y) Largest decline over 3 years	-24.51%	-50.64%	+26.13%
Max Drawdown (5Y) Largest decline over 5 years	-27.55%	-57.21%	+29.66%
Max Drawdown (10Y) Largest decline over 10 years	—	-57.21%	—
Current Drawdown Current decline from peak	-6.42%	-53.33%	+46.91%
Average Drawdown Average peak-to-trough decline	-7.98%	-15.65%	+7.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.59%	15.04%	-9.45%

Volatility

BBDC vs. PSEC - Volatility Comparison

The current volatility for Barings BDC, Inc. (BBDC) is 6.34%, while Prospect Capital Corporation (PSEC) has a volatility of 10.61%. This indicates that BBDC experiences smaller price fluctuations and is considered to be less risky than PSEC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BBDC	PSEC	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.34%	10.61%	-4.27%
Volatility (6M) Calculated over the trailing 6-month period	15.12%	27.53%	-12.41%
Volatility (1Y) Calculated over the trailing 1-year period	18.60%	33.82%	-15.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.39%	28.06%	-8.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.21%	27.36%	-3.15%

Dividends

BBDC vs. PSEC - Dividend Comparison

BBDC's dividend yield for the trailing twelve months is around 12.99%, less than PSEC's 22.94% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BBDC Barings BDC, Inc.	12.99%	12.96%	10.87%	11.89%	11.66%	7.44%	7.07%	5.25%	21.24%	0.00%	0.00%	0.00%
PSEC Prospect Capital Corporation	22.94%	20.85%	16.01%	12.02%	10.30%	8.56%	13.31%	11.18%	11.41%	13.45%	11.98%	14.72%

Financials

Frequently Asked Questions

Can I hold both BBDC and PSEC in my portfolio?

BBDC and PSEC have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BBDC or PSEC?

PSEC has higher volatility (10.61%) compared to BBDC (6.34%). In terms of maximum drawdown, BBDC dropped -48.45% vs PSEC's -61.51%.

Which has better risk-adjusted returns?

BBDC currently has the higher Sharpe Ratio (0.22 vs -0.50), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.