Russia lowered its benchmark interest rate by half a percentage point for the second consecutive time https://t.co/ei2RDDd51i ...

Core Viewpoint - The article discusses the current state of Business Development Companies (BDCs), highlighting a seven-stock BDC portfolio with a yield of 13.5% that is expected to recover as the market stabilizes. Despite concerns over unemployment and economic slowdown, small businesses are reportedly thriving due to AI advancements [1][4]. Economic Overview - Small business profits are increasing, contradicting unemployment reports that suggest a slowdown. The Atlanta Fed's GDPNow estimates growth solidly over 3% [2]. - The current economic environment is characterized as an efficiency boom rather than a recession, driven by small businesses adopting AI to enhance operations [4]. BDC Market Dynamics - The BDC industry is competitive, with more losers than winners. Selecting individual BDCs is preferable to buying a fund that includes underperformers [6]. - Lower interest rates can reduce financing costs for small businesses, increasing demand for loans, which is beneficial for BDCs [7]. Specific BDC Analysis - **Sixth Street Specialty Lending (TSLX)**: Offers a 9.4% yield, focuses on companies with enterprise values between $50 million and $1 billion, and has a growing portfolio. It primarily deals in first-lien debt, with 96% being floating-rate [8][10][11]. - **Gladstone Investment (GAIN)**: Provides a 10.8% yield, focuses on lower-middle-market companies, and has a higher equity exposure than typical BDCs. Its supplemental distributions are variable [13][19][20]. - **Crescent Capital BDC (CCAP)**: Yields 12.3%, has a diverse portfolio of 187 companies, and is significantly affected by Fed rate changes due to its floating-rate debt [21][24]. - **Trinity Capital (TRIN)**: Offers a 13.5% yield, has a growth-focused portfolio of 178 companies, and is diversified in its investment types [25][28]. - **FS KKR Capital (FSK)**: Yields 14.5%, is one of the largest BDCs, and has a diversified portfolio but has faced challenges due to bad loans and a recent dividend cut [29][33]. - **Goldman Sachs BDC (GSBD)**: Yields 14.7%, has faced quality issues leading to a dividend cut, but is becoming more aggressive in deal-making [35][38]. - **BlackRock TCP Capital Corp. (TCPC)**: Offers a high yield of 19.6%, but has struggled with a significant loss since early 2023 and recently cut its dividend [39][42][43].

Japan’s 10-year government bond yield hit the 2% milestone for the first time since 2006 after the Bank of Japan raised its benchmark interest rate to the highest in 30 years https://t.co/NCEFdqaqgR ...

日本央行将基准利率从0.5%上调至0.75%，利率水平创30年来新高，这也是2025年1月以后，日本央行11个月来再次进行加息。加息决定获一致通过。日本央行预计实质利率将维持在极低水平，如果经济和物价走势符合预期，并随着经济和物价的改善，将继续加息。即使在利率变动后，货币环境依然宽松，支持经济。日本央行维持日本经济评估，尽管存在一些疲软，日本经济已温和复苏，预计核心通胀继续温和上升。 ...

The Bank of Japan raised its benchmark interest rate to the highest level since 1995, as broadly expected by market participants https://t.co/wgGHy5ljCP ...

The Bank of Russia is set to make a second straight half percentage-point cut to its key interest rate, offering only limited relief to the slowing economy amid uncertainty over whether an upcoming tax hike could stoke inflation https://t.co/9sgasAqTHe ...

Mexico’s central bank lowered its benchmark interest rate by a quarter point, the latest in a series of cuts aimed at sparking economic growth despite worries over stubborn inflation https://t.co/BymDAqxY7f ...

Three European central banks delivered interest rate decisions today that matched what economists were expecting: Here's your Evening Briefing https://t.co/KQxwYNdEeA ...

Eurozone ECB deposit facility rate as of Dec. 18 stands at 2.00%, in line with expectations of 2.00%, unchanged from the previous 2.00%. ...

🇬🇧 NOW: The Bank of England cut its interest rate by 25 bps to 3.75%, matching expectations. https://t.co/0D5fsLE7Si ...