Ares Capital: The Investment Attractiveness Has Increased Despite The Share Price Run Up

Hiroshi Watanabe Late December last year, I issued an article comparing the largest BDC - Ares Capital (NASDAQ:ARCC) - with the second largest one, FS KKR Capital (FSK). While I was bullish on both BDCs, I preferred allocating slightly more in FSK due to the following reasons: FSK traded at a discount to NAV, while ARCC had an embedded premium. FSK's share price had been under the pressure for quite some time due to a notable build-up of non-accruals, which according to the Management was set to change. FS ...