Palmer Square Capital: 3 Key Takeaways for Long-Term Investors

Palmer Square Capital (PSBD) reported Q3 2026 net investment income of $0.38 per share and announced $5.2 million in share repurchases. The business development company is prioritizing balance sheet flexibility through debt refinancing to lower borrowing costs and is shifting capital allocation toward private credit over syndicated loans, which offer better risk-adjusted returns. With leverage at 1.63x equity and significant unused facility capacity, management is positioned to capitalize on opportunities as private market activity recovers.