Ares Capital: Monitoring Portfolio Risks Closely

PM ImagesAres Capital (NASDAQ:ARCC) is a strong BDC with a long history of offering investors a relatively stable dividend yield. More recently, some concern has arisen over the likely impact of rate cuts on its net investment income (NII). Furthermore, there is growing concern over potential increases in non-accruals at BDCs such as ARCC. While ARCC has historically managed its portfolio prudently, recent trends suggest a potential rise in defaults among underlying portfolio companies. This phenomenon  ...