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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: research1234 who wrote (52657)	10/29/2013 11:47:05 PM
From: Elroy	Respond to of 78774

I think BDC's went bad when their short term debt rates skyrocketed. Really? The BDCs don't operate (as far as I know) the short term Repo market. PSEC - for example - says that they benefit from rising rates as their debt is fixed rate, whereas their loans are often floating rate (thus benefiting from rising rates). I would think if short term rates skyrocketed the BDCs could just not borrow - as long as their existing loans are on schedule their yield should be fine.