Why We Are Adding BDCs To Our Income Portfolios Right Now

Pavel Muravev Over the last several months we have continually highlighted both the richness of valuations across the income investment landscape as well as the disconnect between these valuations and a clearly slowing macrocycle. Over the last couple of weeks, however, we added a number of new BDC positions. Since BDCs tend to be higher-yielding / higher-beta securities, this move begs the question of why we are adding BDCs in an objectively expensive credit market. In this article, we dissect the reas ...