Ares Capital: Attractive For Income Investors Yielding 9.6% Heading Into A Lower Rate Environment

PM Images One of the big questions is what will happen to business development corporations (BDC) when the Fed starts its rate-cutting cycle. BDCs have become increasingly popular during the rate-hiking cycle as they generate larger returns for their shareholders and higher yields from their distributed income compared to risk-free assets. I think many of the popular BDCs will do well in a lower-rate environment, especially Ares Capital (NASDAQ:ARCC), often called the gold standard in the BDC realm. Rat ...