BDC Weekly
Private credit redemptions are exposing the gap between income, liquidity, and trust. For BDC investors, the lesson is not to abandon the sector. It is to separate strong public credit machines from fragile liquidity promises.
BDC Weekly
Many BDCs now trade below NAV, but that does not make every discount a bargain. The market is sorting lenders by funding access, dividend cushion, NAV trust, and credit stress.
BDCs
NII coverage ratio helps BDC investors see whether a dividend is being earned, stretched, or supported by conditions that may not last.
BDCs
BDCs and REITs both turn assets into income. But one lends to businesses. The other owns or finances real estate. The machines are not the same.
BDC Weekly
The first Drift BDC Weekly: higher rates still support income, but the cost of money is now testing borrower quality, funding costs, dividend cushion, and trust.
ARCC
ARCC still looks like one of the strongest public BDCs. That is exactly why Q1 matters: the benchmark private-credit machine now has less dividend cushion than the brand suggests.
HTGC
HTGC is still an income story. It is also a trust story: a map of where venture-backed growth companies are still getting oxygen after the easy-money era.
BDCs
Cheap BDCs may not simply be bargains. Public markets may be signaling deeper questions about private-credit marks, dividend durability, and borrower stress.
BDCs
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
The refinancing wall is where old cheap-money assumptions run into today’s higher cost of capital. For BDC investors, it is a test of borrower survival, NAV trust, and dividend durability.
BDCs
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-accruals show when a loan has stopped producing normal income. For BDC investors, they are one of the clearest warning lights for credit stress, NAV pressure, and dividend risk.
The Drift is published by Drift Research LLC for informational and educational purposes only. Nothing published here constitutes personalized investment advice, financial advice, or a recommendation to buy, sell, or hold any security. All investments involve risk, including possible loss of principal.