Investing in BDC Notes and Baby Bonds
I often take advantage of market dislocation such as this to invest higher up in the capital structure of Business Development Companies ("BDCs") including investment-grade Notes and Baby Bonds. S&P Global Ratings recently assigned and affirmed BBB- ratings to both Main Street Capital (MAIN) and Ares Capital (ARCC) taking into account issues related to COVID-19, oil/energy-related exposure and lower interest rates. Please see the details below.
S&P Global Rating for MAIN
On March 24, 2020, S&P Global Ratings lowered its issuer credit and senior