- Interest rates are finally starting to rise and this article discusses a sector that will benefit.
- HTGC is currently yielding 11.2% and higher interest rates will likely drive improved margins and dividend increases.
- More importantly, BDC pricing will likely head higher before additional rate increases similar to early 2016 outperforming REITs and the S&P 500.
- The buying has likely already started as BDCs have outperformed the general markets and other higher-yield investments but still have higher relative yields as discussed below.
For further details see:
Positioning For Higher Rates With This 11.2% Yielding Investment