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I see compelling value in floating-rate preferred shares and baby bonds, especially as credit spreads widen and many now trade at discounts to call value. Recent market volatility and higher interest rates have created attractive entry points in select REITs, BDCs, preferred shares, and baby bonds. I've allocated a significant portion of my portfolio to preferred shares and baby bonds in March 2026.

The latest trading day saw Main Street Capital (MAIN) settling at $51.53, representing a -2.63% change from its previous close.

HOUSTON, March 27, 2026 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it has priced an underwritten public offering of an additional $200.0 million in aggregate principal amount of its 6.95% notes due 2029 (the "2029 Notes"). The 2029 Notes are being issued at a premium to par at a public offering price of 102.061% of the principal amount per 2029 Note, resulting in estimated gross proceeds of approximately $204.1 million and a yield-to-worst of 6.146%.

Main Street Capital (MAIN) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.

The William Companies and Kinder Morgan are midstream energy businesses. Both have increased their dividends for nine consecutive years.

Main Street Capital has followed its peers lower as market concerns over the impact of AI on software-backed credit grow. MAIN maintains strong credit quality, with nonaccruals at 1% of its portfolio fair value and improving sequentially. The BDC had 2.8% of total investment income attributable to PIK in 2025. NII per share grew 5% year-over-year, with 132% coverage of the base dividend and the stock trading at a 65% premium to NAV.

Both of these BDCs previously held a 'Hold' rating, but today I am upgrading one of them to a 'Buy.' My preference for CSWC is driven by the completion of the expected P/NAV correction, making it a priority pick for its double-digit yield. While MAIN remains an ultra-premium asset, its correction may extend further toward the 1.50x P/NAV level.