Is an externally managed BDC... BDC's have already done well during the interest rate hikes... I can well imagine that BDC's will fall again in the coming years when the interest rate is back towards 2%. I'm invested in BDCs myself and have already taken profits, but at the moment I'm only going in with a savings plan or small tranches.
Topic shareholder,... read regularly yes,... believe everything no, sometimes especially if you stay tuned you can also find good articles
Topic shareholder,... read regularly yes,... believe everything no, sometimes especially if you stay tuned you can also find good articles
•
22
•
7Lun
@Tabularasa yes, it's a bit ambivalent about interest rate cuts, of course I've already thought about the fact that bdcs could then perform worse. On the other hand, there are also companies that postpone their planned investment to the future due to high interest rates, if it can be postponed. So falling interest rates would also ensure that a) the bdcs themselves can borrow money more cheaply and b) more companies take out loans from bdcs.
The only thing more problematic would be an environment in which the borrowing companies go bankrupt.
The only thing more problematic would be an environment in which the borrowing companies go bankrupt.
••