Looking At Ares Capital's Financials Under Lower Interest Rates

JONGHO SHINAres Capital (NASDAQ:ARCC) operates as a business development corporation (BDC) lending into both distressed and middle-market businesses. It uses leverage to enhance returns. As with some BDCs, many of Ares' investment instruments contain floating rate clauses for both investments and debt. The two tend to increase and decrease with changing marketplace interest rates, but the movement is biased. In Ares' case, the return bias leans toward higher with higher rates and vice versa. The Chairma ...