@Investment4Life no. BDCs get their loans at a fixed interest rate, no matter what the current interest rate is. That's why they are called BDCs. And they finance projects for which no one would get a loan from a bank
@Dividenden_Monteur Quote from Finanzentdecker: "In addition, the BDCs generate regular income by granting loans to the companies in which they invest. These loans have variable interest rates. Repayments are then made in the form of regular interest payments, profit distributions or company shares, for example
@Watzeklicker I don't believe that, I know that. How else did BDC's make money between 2009 and 2021 while paying 0 interest? As I said, this is risk capital for which no bank will open its wallet, Best example $HTGC who lent a loan at 12% interest to $BMY for a cancer study. @Investment4Life 10-K Filling page 51, how do you arrive at 30%? I see almost 100% split between equity and debt loans
@Dividenden_Monteur Well, all the sources I've found so far contradict your statement. In addition, they don't grant the loans at the market interest rate. Especially if no bank will grant a loan, the risk premium is correspondingly higher. I am very much of the opinion that you are completely wrong. Especially as the demand for credit in the period you mentioned is likely to have been significantly higher.
@Watzeklicker okay then believe it đ The BDCs will continue to pay special dividends as long as their NII is correct. Regardless of whether the key interest rate is 0 or 5.
