BDCs and middle-market credit can solve rising-rate puzzle episode artwork

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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This episode was published on February 18, 2022.

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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,...

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