Business Development Companies rally nearly 10% in early August, led by strong earnings and sector resilience.

Business Development Companies (BDCs) saw a strong performance in the first week of August, with average returns close to 10%. Higher-risk BDCs like TCPC, CION, and OTF led the gains, supported by solid Q2 earnings and a median NAV return of 1.7%. Despite slightly lagging in price year-to-date, BDCs have outperformed other credit sectors in total NAV, showing sector strength and market inefficiency. Key players FDUS and OTF reported strong quarterly results, fueling the rally and indicating good underlying fundamentals for investors to watch going forward.