A Warning for BDC Investors скачать в хорошем качестве

A Warning for BDC Investors

My Portfolio & Connect:   / dividendbull   There's been a lot of conversations going on about how lower interest rates are going to negatively impact business development companies. From what I've been reading, a lot of investors are pretty confident that we're going to see widespread dividend cuts across this sector. The reason for this is because most BDCs hold an overwhelming amount of floating-rate debt. The amount of interest these BDCs earn from this debt depends on interest rates. When rates go up, they earn more income from their portfolios. When rates go down, which is what we're heading toward, investment income falls. There's no doubt that business development companies are going to enter a more difficult environment. As the Feds cut interest rates, we will likely see dividend coverage fall, and there are likely to be cuts among this category of investments. Knowing this, a number of people are suggesting that now is the time to rotate out of BDCs and instead use those proceeds to buy other investments, like covered call funds and closed-end funds. In this video I want to take a look at this Armageddon that's apparently coming for business development companies. Dividend Bull PO Box 6913 Chandler, AZ 85246