Quick BDC Market Update
As mentioned in previous articles, I was expecting Business Development Company ("BDC") pricing to pull back from recent highs for various reasons including profit-taking and a partial return to "risk-off" mode. Clearly the potential for additional or renewed lockdowns related to COVID-19 is a concern driving markets lower, including BDCs that are now yielding around 13% including New Mountain Finance (NMFC) which is discussed in this article.
I'm expecting volatility through July until BDCs start to report Q2 2020 results (see dates at the end). Many BDCs will likely