BDC Shuffle: The Stock To Drop And The Stock To Shop

Jul. 20, 2025 9:15 AM ET, , , , 19 Comments1 Like
Roberts Berzins, CFA
10.74K Followers

Summary

  • BDCs have performed unexpectedly well this year.
  • Despite the growing uncertainty in the system and high probabilities for incremental base rate cuts, the BDC index is up on a YTD basis.
  • This is not the right setup for being aggressive here.
  • In the article I share two BDCs - one is a buy, the other should, in my view, be avoided.
Coins moving from one stack onto another

Richard Drury

The private credit and business development company (BDC) segments have experienced a huge roller-coaster ride this year. Going into 2025, the overall picture seemed relatively acceptable, with no clear growth catalysts ahead but no obvious impediments either. Yet, when we got hit by a major tariff announcement

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