SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Elroy who wrote (52656)10/29/2013 9:29:51 PM
From: research1234  Read Replies (1) | Respond to of 78774
 
I think BDC's went bad when their short term debt rates skyrocketed.



To: Elroy who wrote (52656)10/29/2013 11:59:46 PM
From: Spekulatius1 Recommendation

Recommended By
Jurgis Bekepuris

  Respond to of 78774
 
>>How does the BDC sector go belly up?<<

It's a confluence of several factors like their own financing costs going up, the loans that they madd going bad and in some cases they bump against leverage limits, which forces them to dilute their shareholders at the bottom.
Last not least, the investors those BDC throw in the towel and sell those shares cheaper than the poorer fundamental conditions warrant.