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BDCs Sport Lofty Yields, But the Risks Are Growing. Time to Steer Clear.

Por: MarketWatch Business November 26, 2022

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The bullish case for BDCs has been that they allow individual investors to invest side by side with institutions in the booming market for “private credit,” and benefit from what have been historically low loan losses. Most loans have floating rates tied to short-term interest rates. This has allowed BDCs to capitalize on the sharp rise in rates to a recent 4% from near zero at the start of 2022. A high percentage of loans go to companies... + full article



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