Strong Buy With 12% Yield With 30%+ Return Potential: TCG BDC

CGBD Article Follow-Up
In December/January, I purchased additional shares of multiple "oversold" higher-quality business development companies ("BDCs") with risk-averse balance sheets prepared for a potential economic slowdown, including TCG BDC Inc. (CGBD) as discussed in "I Just Bought More TCG BDC, Which Is About To Rally With A Safe 13% Yield".
The previous article included the following CGBD chart and mentioned:
CGBD has declined more than the average BDC, and I purchased shares yesterday at $12.34 for the reasons discussed in this article.

Source: Yahoo Finance
In December 2018, the BDC sector was oversold (along with other higher-yielding assets) due to wider yield spreads as discussed in previous articles. BDC pricing is closely correlated to yield spreads including other non-investment grade debt and ‘BofA Merrill Lynch US Corporate B Index’ (Corp B). I typically make multiple purchases when Corp B effective yields rise. As shown in the chart below, Corp B yields have been falling back to previous levels driving higher BDC pricing this year:

Source: FRED
Additionally, CGBD's stock price has been under technical pressure due to the semiannual release of pre-IPO shares (June and December) as discussed at the end of this article.
As of the writing of this article, CGBD's stock was trading at $14.93 and 21% higher than my most recent purchase, easily outperforming most BDCs and S&P 500:

Source: Yahoo Finance
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