BDC Stock Price Declines
Business Development Companies ("BDCs") got hammered this month along with other higher-yield credit-related investments for many of the reasons discussed below. It is important for investors to understand that BDCs are mostly retail-owned and many of the investors manage their own accounts potentially reacting out of fear.
- BDCs are considered "small-cap" and if an investor is looking to reduce exposure they might sell (regardless of quality).
- BDCs are part of the "financial sector" and if an investor is looking to reduce exposure they might sell