- We take a look at the different features of Business Development Companies and compare them to other popular leveraged credit vehicles - loan CEFs.
- BDCs have a number of advantages to loan CEFs such as higher yields, higher historic returns, looser leverage covenants, more stable NAVs and other advantages.
- For these reasons, BDCs can play a higher-yielding role in barbell income portfolios.
- We also highlight FDUS - a strong performer in the sector, trading at a high dividend yield and decent valuation.
For further details see:
The Risk/Reward Of BDCs In Income Portfolios