CSWC Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: CSWC's historical return surface indicates likely positive returns over longer holding periods, suggesting undervaluation amid promising sector investments. Stable dividends enhance attractiveness amid low macro tailwinds.




Bearish Case: Predominantly high put volume and mean-reverting price signals potential downside pressure. Elevated implied volatility (63.5%) in long-term puts highlights market concerns, reflecting macroeconomic threats.




Potential Outcomes:
1. Smooth recovery (35%): Driven by stable dividends and mean reversion.

2. Mild downturn (50%): Macro uncertainty persists with hesitant market sentiment.

3. Severe drop (15%): Economic headwinds sap performance.




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January 24, 2025


Capital Southwest Forecast

CSWC        Capital Southwest
















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