Not all distribution yields are created the same. In business development companies (BDCs), the headline number is just the starting point. What matters is how that distribution is generated and whether it is supported by current earning power. Over time, any gap between the two shows up somewhere. In our latest piece, we break down five underlying mechanics to evaluate how a distribution is funded. Swipe through for a quick breakdown or read the full article here: https://lnkd.in/dNm4YjBR #PennantPark #DirectLending #CoreMiddleMarket #YourCoreMiddleMarketPartner #AssetAllocation
Evaluating Distribution Yield in BDCs
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