Blackstone Secured Lending: Surviving But Not Yet Thriving (Rating Downgrade)

Blackstone Secured Lending Fund is downgraded to hold as earnings stagnate, NAV declines, and dividend coverage thins despite a record discount to NAV. BXSL's portfolio is heavily weighted toward first lien debt, but its 21% software exposure poses risk amid sector headwinds and AI-driven disruption. Net investment income covers the 13.3% dividend yield, but coverage is shrinking, and increased PIK income signals potential portfolio stress.