Business development companies (BDCs) were created by Congress in 1980 to give investors an opportunity to invest in private small and mid-sized U.S. companies typically overlooked by banks. Most BDCs are publicly traded with a highly transparent structure subject to oversight by the SEC, states and other regulators, providing investors with higher than average dividend yields (between 7% and 14% annually) by avoiding taxation at the corporate level. This allows them to pass along ordinary income and capital gains directly to the shareholder. BDCs are required to distribute at least 90% of taxable income to shareholders to avoid corporate income tax as well as maintaining conservative asset coverage ratios.
INDIVIDUAL BDC PROJECTIONS
- Best – Base – Worst Case Scenarios
- Portfolio Credit Issues
- Discussion of Recent Results
- Optimal Leverage Analysis
- Lower Yield Analysis
- Interest Rate Sensitivity Analysis
OTHER REPORTS
- Interest Rate Sensitivity
- BDC Portfolio Returns
- Quarterly Earnings Analysis
- BDC Buzz Positions
DIVIDEND COVERAGE
LEVELS REPORT
- Updated Weekly
- Rankings of Projected Coverage
- Running List of Changes and Reasons
BDC PRICING REPORT
- Yield – Based / Multiples / Total Return
- Suggested Buys
- General Market Trends
BDC RISK PROFILES
- Quality of platform and management
- Portfolio vintage analysis
- Exposure: industry sectors / structured products
- NAV stability / growth potential
- Reaching for yield / dividend coverage
SUGGESTED PORTFOLIOS
- Total Return
- Recommended Higher Yield
- High – Yield
- Risk Averse
OVERALL BDC RANKINGS
- Dividend Coverage
- Risk Profiles
- Pricing & Valuation
- Expected Returns
BDC Buzz Positions
- Current holdings & allocations
- Real-time announcements
- Potential upcoming purchases
- List of previous changes