Buy the dip in BDCs says Wells

|By:, SA News Editor

Declines in the sector in response to Russell's decision to exclude BDCs from its indices are due to technical, not fundamental reasons, says analyst Jonathan Bock. "We believe select BDCs offer compelling return opportunities in this low rate, low credit loss environment. In our view, those risk/return elements are unaffected by whether or not the BDCs are included in Russell Indices."

Among Wells' highest rated names: American Capital (ACAS), Ares Capital (ARCC), Golub Capital (GBDC), Medley Capital (MCC), and TCP Capital (TCPC).

Related ETFs: BDCL, BDCS, BIZD