Public business development companies (BDCs) like ARCC and OBDC are currently trading at significant discounts to their book value, reflecting ongoing risk aversion despite stable internal performance. This has created a roughly 20% valuation gap between public BDCs and their private counterparts, similar to valuation differences seen between public and private real estate investment trusts (REITs). Due to unresolved valuation discrepancies and notable risk factors, business development companies are rated as a Hold, suggesting investors should remain cautious amid sector volatility.
Certain high-yield investments like midstream MLPs and business development companies (BDCs) pay distributions taxed as ordinary income, which can lose about 24% to federal taxes for investors in the 24% tax bracket. Placing these investments inside ...
The Federal Reserve has kept interest rates steady in 2026 after cuts in 2025, leaving investors cautious about future moves amid persistent inflation. Publicly traded business development companies (BDCs) like Ares Capital and Main Street Capital st...
