EPISODE · Feb 18, 2022 · 11 MIN
BDCs and middle-market credit can solve rising-rate puzzle
from The NAVigator
Chris Oberbeck, chairman and chief executive officer at Saratoga Investment Corp., says that the structure of business-development companies -- which allows assets to increase in value when interest rates rise, while keeping liabilities fixed, thereby raising spreads -- makes them particularly attractive to investors looking for better real yields in a rising-rate environment. Oberbeck explains, generally, how BDCs will be able to weather the first rate increase, whenever it happens, with much less impact than most income investments will experience.
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BDCs and middle-market credit can solve rising-rate puzzle
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