MRCC - Monroe Capital Offers 15% Yield Due To Portfolio Credit Issues
I have recently been purchasing shares of higher-quality Business Development Companies ("BDCs") with risk-averse balance sheets prepared for rising interest rates and/or a potential economic downturn. However, I have not purchased shares of Monroe Capital (MRCC) since 2016 for the reasons discussed in this article.
High-yield investments, including BDCs, have been declining since early September potentially for a few reasons including investors expecting higher yields and fear of an economic slowdown and/or higher interest rates. However, MRCC has declined more than the others and is now below its January/February 2016 lows (discussed next):