Private credit has grown into a $1.5 trillion asset class, outpacing regional banks in middle-market lending. Three ETFs—VanEck BDC Income (BIZD), Putnam BDC Income (PBDC), and VanEck CLO (CLOI)—offer public investors access to this market with different risk and yield profiles. BIZD provides broad, passive exposure to business development companies with about 13.5% yield but includes weaker lenders. PBDC is actively managed, focusing on stronger lenders with a 12% yield but higher single-name risk. CLOI invests in senior AAA-rated loan tranches, offering steadier returns around 6% with lower risk. Investors can choose based on their income needs and risk tolerance, or combine funds for balance.
Main Street Capital (MAIN) is rated Buy with a fair value range of $56 to $62 and a base case of $58, offering a 10.5% price upside and an 8.34% forward yield. The company’s premium to book value is supported by a 120–150 basis points operating expen...
Samuel Smith compares two top Business Development Companies (BDCs), Main Street Capital and Capital Southwest, to determine which is a better investment today. Previously, he favored Capital Southwest, but this update revisits their strengths and ri...
Main Street Capital, known as a top-tier, internally managed business development company (BDC), benefits from a $99 million annual cost advantage over external peers, boosting shareholder value. However, its return on equity (ROE) dropped 61% year-o...
The VanEck BDC Income ETF (BIZD) cut its July distribution to $0.24 per share, half of April's $0.48, reflecting stress in its underlying business development companies (BDCs) due to rate cuts and spread compression. Key BDC holdings like Blue Owl Ca...
