Interest rate fears are creeping back into the market again and this article discusses a sector that will benefit.
BDCs are currently yielding an average of 8.4% and higher interest rates will likely drive improved net interest margins and dividend increases.
More importantly, BDC pricing will likely head higher before any rate increases similar to early 2016 outperforming REITs and the S&P 500.
The buying has likely already started as BDCs have been rallying but still have higher relative yields as discussed below.
BDCs & Interest Rates
BDCs & Interest Rates
BDCs & Interest Rates
Interest rate fears are creeping back into the market again and this article discusses a sector that will benefit. BDCs are currently yielding an average of 8.4% and higher interest rates will likely drive improved net interest margins and dividend increases. More importantly, BDC pricing will likely head higher before any rate increases similar to early 2016 outperforming REITs and the S&P 500. The buying has likely already started as BDCs have been rallying but still have higher relative yields as discussed below.