BDCs
Are BDC Discounts Telling Us Something Deeper About Private-Credit Risk?
Cheap BDCs may not simply be bargains. Public markets may be signaling deeper questions about private-credit marks, dividend durability, and borrower stress.
Drift Research Team
BDCs
Discounts to NAV Explained: When the Market Stops Trusting the Marks
A BDC discount to NAV is not just a cheap valuation. It can be the market questioning the loan book, the dividend, the marks, or the cycle.
BDCs
Private Credit Refinancing Wall: How Maturing Debt Becomes PIK, NAV Losses and Defaults
The refinancing wall is the chain from maturing debt to higher interest cost, amendments, PIK, NAV pressure, non-accruals, and weaker BDC dividends.
BDCs
PIK Income Explained: When Income Is Not Cash Yet
PIK income is income before cash arrives — and one of the places private credit can look healthier on paper than it feels underneath.
BDCs
Non-Accrual Loans Explained: When Private-Credit Income Stops
A non-accrual is the moment a lender admits expected interest no longer deserves to count as ordinary income. For BDC investors, that changes the dividend math.
BDCs
Floating-Rate Loans Explained
Floating-rate loans can boost BDC income when rates rise, but the same mechanism can pressure borrowers and create future credit stress.
BDCs
What Is NAV? BDC Book Value, Discounts and Premiums
NAV is the BDC investor’s trust gauge: a way to judge whether the reported value of the loan book still deserves belief.
BDCs
How BDC Dividends Actually Work
A BDC dividend is the last payment in a chain that begins with a private borrower. Here is how cash becomes income, coverage and, finally, a shareholder distribution.
BDCs
What Is a Business Development Company (BDC)?
BDCs are not just high-yield stocks. They are public gateways into private credit, where the dividend is only the output of a deeper lending machine.
Private Credit
What Is Private Credit? Why Wall Street Keeps Pouring Money Into Private Lending
Private credit quietly became a $2 trillion market while most retail investors focused on stocks. Here’s how it works and why institutions love it.