How To Navigate BDC Investing In Lower Interest Rate Environment

While lower yields are generally accommodative for most asset classes, when it comes to BDCs, things are different. The relationship here between the level of interest rates and cash flow generation is positive - i.e., the lower the interest rates, the lower the net investment income result. Analyst's Disclosure: I/we have a beneficial long position in the shares of FDUS, KBDC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am n ...