PSEC vs. BBDC

Last updated Jun 13, 2026

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

Performance

PSEC vs. BBDC - Performance Comparison

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

Returns By Period

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

PSEC

• 1D: 1.32%
• 1M: 4.24%
• YTD: -3.27%
• 6M: -2.63%
• 1Y: -16.87%
• 3Y*: -16.85%
• 5Y*: -13.87%
• 10Y*: 0.41%

BBDC

• 1D: 0.00%
• 1M: 0.43%
• YTD: -2.86%
• 6M: -1.25%
• 1Y: 4.09%
• 3Y*: 14.63%
• 5Y*: 6.45%
• 10Y*: —

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

PSEC vs. BBDC - Yearly Performance Comparison

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

Correlation

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

Fundamentals

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

Return for Risk

PSEC vs. BBDC — Risk / Return Rank

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

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

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

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.

PSEC vs. BBDC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Prospect Capital Corporation (PSEC) and Barings BDC, Inc. (BBDC). 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.

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

PSEC vs. BBDC - Sharpe Ratio Comparison

The current PSEC Sharpe Ratio is -0.50, which is lower than the BBDC Sharpe Ratio of 0.22. The chart below compares the historical Sharpe Ratios of PSEC and BBDC, 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

PSEC vs. BBDC - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

PSEC vs. BBDC - Volatility Comparison

Prospect Capital Corporation (PSEC) has a higher volatility of 10.61% compared to Barings BDC, Inc. (BBDC) at 6.34%. This indicates that PSEC's price experiences larger fluctuations and is considered to be riskier than BBDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

Dividends

PSEC vs. BBDC - Dividend Comparison

PSEC's dividend yield for the trailing twelve months is around 22.94%, more than BBDC's 12.99% 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 PSEC and BBDC in my portfolio?

PSEC and BBDC 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, PSEC or BBDC?

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

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.