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Consider Selling BDCs Due To Lower Rates? Here's Why It's A Bad Idea
Seeking Alpha· 2025-12-31 14:15
Core Viewpoint - Since mid-2024, investor sentiment towards Business Development Companies (BDCs) has shifted due to the Federal Reserve's decision to reduce monetary tightening, leading to concerns about the impact of lower base rates on BDC net investment income [1] Group 1: Investor Sentiment - The change in investor sentiment towards BDCs is attributed to the Federal Reserve's monetary policy adjustments [1] - Investors are increasingly aware that lower base rates will negatively affect the net investment income of BDCs [1] Group 2: Industry Context - The article highlights the experience of Roberts Berzins in financial management and his contributions to enhancing the liquidity of capital markets in Latvia [1] - Berzins has been involved in developing financing guidelines for state-owned enterprises and frameworks for private capital investment in affordable housing [1]