BDC Shuffle: The Stock To Drop And The Stock To Shop

Jul. 20, 2025 9:15 AM ET, , , , 21 Comments
Roberts Berzins, CFA
10.77K Followers

Summary

  • BDCs have performed unexpectedly well this year.
  • Despite the growing uncertainty in the system and high probabilities for incremental base rate cuts, the BDC index is up on a YTD basis.
  • This is not the right setup for being aggressive here.
  • In the article I share two BDCs - one is a buy, the other should, in my view, be avoided.
Coins moving from one stack onto another

Richard Drury

The private credit and business development company (BDC) segments have experienced a huge roller-coaster ride this year. Going into 2025, the overall picture seemed relatively acceptable, with no clear growth catalysts ahead but no obvious impediments either. Yet, when we got hit by a major tariff announcement

This article was written by

10.77K Followers
Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ARCC, BXSL, FDUS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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