MAIN STREET CAPITAL CO. WKN: A0X8Y3 ISIN: US56035L1044 Kürzel: MAIN Forum: Aktien Thema: Hauptdiskussion

Business development companies have tumbled in recent weeks and now offer some of the highest yields in the stock market. For investors with tolerance for risk and volatility, BDCs offer plenty of income and capital appreciation potential. Despite their names, BDCs generally aren’t incubators of start-ups or newly public companies. Instead, they tend to make secured, high-rate loans to smaller companies valued at less than $5 billion that have typically been taken private in leveraged buyouts. They pass nearly all their income to investors. Their structures allow them to avoid corporate taxes, similar to how real estate investment trusts do, but their dividends are usually taxed as ordinary income for individual investors. Ares Capital, the largest, with a $14 billion market value, while other sizable BDCs include Blue Owl Capital, Blue Owl Technology Finance, Blackstone Secured Lending, FS KKR Capital, and Morgan Stanley Direct Lending Fund. The group, however, has fallen on hard times. The VanEck BDC Income change-traded fund is down 15% since mid-September to under $14—it hit a new 52-week low on Friday—and now yields almost 12%. Many individual BDCs now yield more than 11%, with the depressed FS KKR yielding 19.5%. With yields like that, the group is worth a look, especially given that most now trade for considerably less than the value of their assets. BDC stock prices are volatile because the market is dominated by individuals. Income-oriented mutual funds shy away from the sector due to a rule that requires them to include BDC fees in their own fee calculations. The timing of the BDC selloff may provide a clue to what has spooked investors. It began in mid-September when the Federal Reserve cut its key short rate by a quarter point to a range of 4% to 4.25%. The vast majority of BDC loans float at a yield premium above short rates, making their returns vulnerable to lower short rates. That prompted concerns about widespread dividend cuts over the next year if the Fed cuts short rates by another percentage point, as the markets now expect. The BDC dividend-cut issue is a real risk, notes KBW analyst Paul Johnson, who cites the prospect of lower rates and tighter spreads on new loans amid keen competition to make them. “Only a handful of BDCs will not have to reduce dividends over the next year,” he wrote recently. The best guess is that BDC dividends on average could drop by a percentage point or more over the next year. That would leave them with still-ample payouts. The BDC selloff could also be flashing a warning sign about the health of the $1 trillion private credit market, which has mushroomed in recent years. The market is a focus of alternative-asset managers such as Blackstone, KKR, and Apollo Global Management. What makes the BDC drop somewhat perplexing, however, is that other parts of the high-yield credit markets remain strong, unlike the situation in April when everything sold off

Key Points Business development companies, or BDCs, have experienced a 15% decline since mid-September, with the VanEck BDC Income ETF now yielding almost 12%. The selloff began after the Federal Reserve cut its short rate by a quarter point, raising concerns about potential dividend cuts if rates fall further. Despite risks like leverage and high fees, the current discounts to net asset value and high yields present a potential buying opportunity for investors.

Vielen Dank. Leider kann man ohne Registrierung/ Abo nicht viel von dem Bericht lesen. Könntest du bitte einen ganz kurzen Abriß darüber geben, was man als positives Zeichen sieht? Danke dir!

Trump hat mit seinen Spielchen grad erst begonnen..... Würde vielleicht noch bissel warten wie sich die Situation entwickelt

Beste für Einstieg. Die hoodler flippen natürlich aus. Die trader sehen billige Einstiege. So muss das auch

Trump Ist king

Das amerikanische Anlegermagazin Barron's, das ich seit mehreren Jahren abonniert habe, schweigt sich gewöhnlich über BDCs aus. Aber jetzt gibt es einen ausführlichen und positiven Artikel: https://www.barrons.com/articles/income-yield-bdc-business-development-companies-6a6b6f6c

Trump ist wieder auf dem besten weg einen dicken Zollkrieg anzufangen....dann wissen wir ja wohin die Reise geht....

Trump muss einfach weg. Der Typ nervt

Der beste man ungelogen. Konnte gut rein zwar nicht wie im April aber da war ich eh noch nicht im Markt

Größere Korrektur.... Bin da bei dir. Denke wir sind schon mitten drin und es wird weiter runter knallen. Vor allem nach den heute "the best man der USA" wieder mit Zöllen droht.

Total übertrieben hier bei Main Street

Kann man bald günstig zu kaufen 😜

Ende Oktober ist oft ein Mehrmonats-Tief bei amerikanischen Werten. Die nächsten 20 Tage werden wahrscheinlich eher durchwachsen sein.

Kacke ey

Geht direkt auf 40 bald