RBC downgrades Palmer Square Capital BDC, citing tighter credit spreads

RBC Capital downgrades U.S. corporate financier Palmer Square Capital BDC PSBD.N to "sector perform" from "outperform"

Brokerage also trims PT to $13 from $15, which is still a 4.9% upside to stock's last close

Rating and PT cut citing tight credit spreads that leave few attractive liquid credit opportunities for the lender

"While PSBD augmented its share repurchase program, utilization could be limited by PSBD's leverage, which at 1.53x, is among the highest in our coverage," brokerage says

6 of 6 brokerages rate the stock "hold" their median PT is $13 — data compiled by LSEG

As of last close, PSBD down 18.49% YTD