Sixth Street Specialty Lending: I Expect Another Dividend Cut

TSLX cut its dividend in May. But I expect another cut in the quarters to come. TSLX's NII barely covers its dividend, with only a $0.01 per share margin, signaling a risk of further cuts. Rising debt costs and a 70 bps spread drop pressure TSLX's NII, while stable NAV and strong diversification offer some support.