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Strategies & Market Trends : 50% Gains Investing

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To: IRWIN JAMES FRANKEL who wrote (94066)9/15/2010 9:11:02 PM
From: CrossyRead Replies (1) of 118717
 
re: BDCs

that is an interesting segment indeed and right now I'm trying to learn the ropes there. Some of the BDCs even have access to cheap SBA credit lines, some do not.

To my knowledge, all BDCs share a REIT like tax advantage. They don't pay taxes on their profits but have to distribute 90% of these in any year. Clearly, they belong into an IRA account. This structure allows the "collection" of interest on mezzanine loans - UNTAXED - by investors til the IRA is tapped.

BDCs might even take some of the lending market away from banks.

rgrds
CROSSY
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