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Strategies & Market Trends : Value Investing

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To: Sergio H who wrote (47940)	5/14/2012 2:30:49 PM
From: tytthus	3 Recommendations of 78670

a big problem during the credit crisis for the BDC was mis-matched duration of their debt and investments. most of their leverage came from rather short term credit facilities, while their assets were multi-year (generally) investments. most BDCs have been diversifying the liability side of their balance sheets since 2009. adding preferred and convertible debt and longer term back and unbacked debt. they wind up paying more than the credit facilities, but they'll be caught less flat footed when the next crisis hits.

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