Palmer Square Capital: 3 Key Takeaways for Long-Term Investors
Management is steering new capital toward private credit, where it sees better relative value than in syndicated loans, a choice with lasting return implications.
Palmer Square Capital reported a net investment income of $0.38 per share for the third quarter of 2026. The company is focusing on balance sheet flexibility and disciplined capital allocation to safeguard shareholder value. During the quarter, the business development company repurchased $5.2 million of its common stock due to shares trading below net asset value.
This equity repurchase increases ownership for existing shareholders without resorting to lower-yielding new debt. The firm also adjusted its collateralized loan obligation and credit facility to optimize funding efficiency and reduce expenses. Management is concentrating its capital deployment on private credit and secondary market purchases, where risk-adjusted returns continue to be favorable.
The company is taking advantage of its first-lien loan backing and low nonaccruals to protect yields. With leverage at 1.63 times equity and ample unused facility capacity, Palmer Square Capital is well-positioned to seize high-yielding loan opportunities as private market activity rebounds. The company's liquid portfolio, active management, and market insight position it to capitalize on evolving market conditions.
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