3 SBIC & Commercial Finance Stocks to Watch Despite Industry Concerns

With interest rates coming down, the Zacks SBIC & Commercial Finance industry is expected to face margin compression and lower investment income as the majority of loans are tied to floating rates. Asset quality remains at risk as prolonged high rates may strain borrowers’ ability to repay.Meanwhile, lower rates are likely to drive demand for personalized financing, aiding investment income to some extent. Demand for refinancing is expected to improve. Regulatory changes offer funding flexibility and suppor ...