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SIVBP - Ares: 40 Big-Yield BDCs Silicon Valley Bank Fallout
SVB Financial Group Depositary Shs each representing a 1/40th interest in a share of 5.25% Fixed-Rate Non-Cumulative Perpetual Preferred Stock Series A
2023-03-25 09:09:26 ET
Summary
Ares Capital is an attractive 11.2% yield BDC but currently faces market-cycle risks, including fallout from the recent Silicon Valley Bank failure.
We review Ares (including its industry exposures and risks) and then compare it to 40 other BDCs, including four with particularly heavy venture-capital industry exposure: Hercules, TriplePoint, Horizon, and Trinity.
We conclude with our strong opinion about investing in BDCs right now, especially Ares Capital and VC-focused BDCs in particular.
SVB Financial Group Depositary Shs each representing a 1/40th interest in a share of 5.25% Fixed-Rate Non-Cumulative Perpetual Preferred Stock Series A