February 15, 2012

BDCs Make Sense Here

As the economy continues to heal, business development companies (BDCs) can potentially add significant value to a portfolio. These firms, which loan money to mid-sized businesses, are quite sensitive to the overall business environment – which explains their swoon in the middle of last year. But even as their stock prices rise along with employment and consumer confidence, their yields are still attractive, as this article shows .

Disclosure: I, and my firm's clients, own the following mentioned stock: FSC.

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