- BDCs generate income by lending to, and investing in, private companies that tend to be rated below investment grade or unrated, and are generally difficult to access.
- BDC valuations, as represented by the MVIS U.S. Business Development Companies Index, have completely recovered to pre-pandemic levels.
- Many BDCs actually stand to benefit from a rise in base interest rates thanks to these floating rate loans paired with the fixed low rate debt that BDCs issued over the last year.
For further details see:
Position For Rising Rates With BDCs As Credit Concerns Abate