PNNT - PennantPark Investment: 12% Yielding BDC

2024-02-11 09:15:00 ET

Summary

• The Fed is not expected to lower interest rates until later in 2024, benefiting the BDC industry.
• PennantPark Investment Corp. is a BDC based in Miami that specializes in direct and mezzanine investments in middle market companies.
• PNNT's portfolio consists of a mix of debt and equity investments, with a focus on business services and healthcare/education/childcare industries.

Looking for a way to play high interest rates?

The Fed seems to be digging in its heels on waiting to lower interest rates until later in 2024, contrary to what many Wall Street pundits had been predicting.

One sub-sector that has benefited greatly from higher interest rates is the BDC industry due to the fact that most of these companies lend money at floating rates but peg their borrowings at fixed rates....

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