2024-05-08 07:49:21 ET
Summary
- The private credit and BDC space has become an attractive place where yield chasing investors can deploy capital.
- While these markets are booming, there are some clear risks involved.
- By incorporating a set of defensive criteria in the BDC selection process, investors can de-risk their investments, while accessing yields that are in line with the average.
- In this article, I elaborate on two such examples (BDC names), which yield around 11% and have a defensive structure in place.
Since the moment when the Fed decided to combat the inflation with several interest rate hikes in a quite rapid fashion, the private credit space started to flourish. The overall reason for this could be explained by the dynamics that are macro specific and private credit player specific....
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2 BDCs Yielding Above 11% That Have Below Average Risk Profile