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To: Sergio H who wrote (47924)5/14/2012 10:55:07 AM
From: MCsweet1 Recommendation  Read Replies (2) | Respond to of 78666
 
Sergio,

Some BDCs survived the credit crisis well - ARCC, for example. But all their stock prices got hit hard during the crisis. Even ARCC went from $16 to $4. Since these are very credit sensitive companies, it is clear to me that you don't want to own them going into a credit crisis. You may end up ok in the end, but why hold something that could go down 50%+?

It would be better to buy the more solid ones in the midst of the credit crisis, after they have gone down a lot.

MC