We continue to cover Business Development Companies, known as BDCs, in our recent articles in 2022. In the low yield environment, BDCs emerged in 2021 as an increasingly popular choice for income investors searching for attractive yields. BDCs offer retail investors exposure to privately-held firms, which often are also funded by venture capital firms. BDCs got walloped in the COVID Crash of 2020, due to uncertainty as to how their portfolio companies would handle the altered environment of lockdowns and sheltering in place.
As it happens, the majority of them did well, with their holdings weathering the storm, which became increasingly evident as earnings reports rolled in. Prospect Capital (PSEC) is one of the largest BDCs in the market, among the top 5 market caps for the industry. PSEC's non-accruals have steadily improved over the past 6 quarters, declining from 0.9% of assets in Q2 '20 to 0.4% in Q4 '21. Founded in 2004, NY-based Prospect Capital (PSEC) provides private debt and private equity to middle-market companies in the US, with a focus on sponsor-backed transactions and direct lending to established owner-operated companies.
Source: Seeking Alpha
Related Articles:
8% Yield, 21% Discount, Steady Dividends
Posted by D4L | Wednesday, March 09, 2022 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
In an attempt to put a lid on inflation, the Federal Reserve has stated that it intends to raise its benchmark federal-funds rate by 0.25% a...
-
If you have contemplated selling shares of some of the companies you own this year, you likely aren't alone. Considering how volatile th...
-
Dividend Kings, stocks with at least 50 consecutive years of dividend growth, are favorites of many income investors. High-dividend yields c...
-
Dividend growth stocks are among our favorite investment groups because you get so much bang for your buck. Not only do the companies pay di...
-
Readers may want to do a stock valuation on the stocks in their favorite sectors and wait patiently until they become cheap. Patience is a v...
-
This is a clear recipe for investors to follow, and will lead us quite naturally to two recent stock recommendations from Morgan Stanley’s a...
-
Dividend utility stocks might seem bad for your portfolio during high inflation and rising interest rates. However, the sector has done well...
-
Companies that have either been through past downturns or have the pricing power to offset the costs of inflation provide a crucial element ...
-
Dividend reinvestment plans, or DRIPs, can be effective ways to accumulate shares of high-quality companies for those with limited capital t...
-
Do you have the stomach for contrarian investing - betting against the crowd? Sometimes that's necessary in order to find value. Why buy...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.