OXSQG - REITs Continue To Underperform BDCs

• REITs continue to underperform BDCs over the longer and short term.
• For the same amount of income with less risk, it's better to invest 50% less capital in BDCs at 8.3% compared to equity REITs at 3.1% to 3.6%.
• BDCs have minimal investments in cyclical sectors, stronger credit performance than many private equity/debt funds during recessionary periods, maintaining and often improving dividend coverage while others are cutting.
• BDCs will likely continue to outperform REITs for the reasons discussed in this article including improved balance sheets and widening net interest margins.
• Also discussed are using ETFs and ETNs in these higher-yield sectors to improve diversification but also taking into account yield and total returns.

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