Palmer Square Capital BDC (PSBD) is a Business Development Company (BDC) that primarily lends to U.S. companies through first lien senior secured loans — the highest-priority debt in a borrower's capital structure. PSBD's key differentiator is its ability to invest across both the broadly syndicated loan (BSL) market, a large liquid market for loans to bigger companies, and private credit, where loans are individually negotiated. Most BDCs focus exclusively on private credit; PSBD's flexibility lets it rotate between markets based on relative value and gives it access to the secondary BSL market when M&A deal flow slows. As of year-end 2025, PSBD held 264 investments across 205 portfolio companies, with roughly 95-96% of the portfolio in senior secured debt and an average position size of ~$5M. PSBD is externally managed by Palmer Square Capital Management, a Kansas City-based alternative asset manager with ~$36.2B in AUM, whose large CLO platform provides deal flow visibility across the bank loan market. PSBD earns income by borrowing at lower rates and lending at higher rates, with a predominantly floating-rate portfolio tied to SOFR. PSBD funds itself through two revolving credit facilities and a CLO it issued in 2024, running leverage of roughly 1.5x debt-to-equity. The manager charges a 1.75% base fee on net assets and a 12.5% incentive fee above a 6% hurdle — below typical BDC peer fees of 15-20%. As a regulated investment company, PSBD distributes at least 90% of taxable income to shareholders via a base quarterly dividend plus supplemental dividends from excess earnings.