BDC picks ahead of upcoming earnings

|By:, SA News Editor

With BDC earnings set to begin rolling in this week, a new report from JPMorgan expects them to show increasing originations in H1 and says the companies are well-positioned for a rising rate environment. Those rated Overweight by the JPMorgan team include:

Apollo Investment (AINV +0.5%) - reporting Thursday - has its price target boosted to $9 from $8.50.

Ares Capital (ARCC +0.1%) - reporting Tuesday - has had a portfolio yield which has declined thanks to a focus on higher-quality investments, but it's a move which should bode well for shareholders in the longer term.

Solar Capital (SLRC +1.4%) - reporting Tuesday - is more conservatively run with a distribution (7.3%) at the lower end, and thus maybe more suitable for conservative investors.