Home Dividends Analysis Dividend Quick Picks Summary SaaS-related fears have driven significant discounts in BDCs, especially those with higher SaaS exposure. Market concerns center on AI disruption, weak SaaS recovery rates, and skepticism around leveraged SaaS LBOs. I believe SaaS default fears are overblown; established SaaS firms with strong moats and cash flow are more resilient. In this article I elaborate on 2 SaaS-heavy BDCs, which, in my view, present compelling investment opportunities. cagkansayin/iStock via Getty Images The fear of software-as-a-service or SaaS companies getting disrupted by the AI is, arguably, the main driver for the BDC discounts. In February this year, when Anthropic announced its new AI tools for the Claude "Cowork" AI Analyst’s Disclosure: I/we have a beneficial long position in the shares of OTF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions.…