BDC Outlook: Rate Cuts, Tariffs, and Dividends

Video Description

The Business Development Company (BDC) sector offers attractive yields (often exceeding 10%). However, it is asset sensitive, meaning lower rates will impact their earnings. In this interview with Mike Petro, Portfolio Manager from Putnam Investments, we tackle the biggest questions about the sector's future: How will coming rate cuts affect your dividends? We also discuss Base versus Supplemental dividends, the impact of tariffs, and key metrics like ROE, and non-accrual rates to help you identify the most resilient BDCs. (recorded Oct 2nd 2025) ➡️ Join Armchair Insider to receive my Portfolio (it's free): https://armchairinsider.beehiiv.com/subscribe ❤️ Love Income Investing? Check out our Community: https://armchairincome.link/insider ✏️ LINKS FROM TODAY'S EPISODE: ➡️ My Favorite Dividend Tracker, Snowball: (Create a Free Account, and the 10% Discount will appear under "Subscribe"): https://armchairincome.link/snow ➡️ My #1 Research Tool: Seeking Alpha ($30 Coupon +Free Trial): https://armchairincome.link/SeekingAlpha ➡️ Daily Income News, BDC & Preferred Share Coverage from Systematic Income Investing by ADS Analytics (Exclusive $33 Armchair Rate vs $39 on their website) https://armchairincome.link/systematic Previous Interview with Mike Petro (Introduction to BDC’s): https://youtu.be/JWCbD4BQadM?si=d-2N_KhRdlHBHOHN&list=PLnz-9sqOVpmgZl1faPfKF_Xcce9u03Lhz PBDC Fund Fees Explained: https://www.franklintempleton.com/investments/capabilities/etfs/pbdc-acquired-fund-fees-expenses ======================================= Timestamps: 00:00 Introduction 00:31 How would interest rate cuts affect BDC's? 04:18 How do tariffs affect BDC's? 07:28 Will PBDC switch from quarterly to monthly distributions? 08:45 What differentiates good BDC's from bad BDC's? 12:21 Does the yield represent the actual income? 14:29 Which BDC's do you expect to hold for the long term? 18:12 MAIN is trading at a huge premium, have you considered taking profits? 21:00 Current BDC valuations and the recent dip in BDC prices 23:18 Which metrics do you use to compare BDC's? 28:30 PBDC versus BIZD (Comparing BDC funds) 33:52 Mike's outlook for the BDC sector ======================================= 🤓 DETAILED INFORMATION: ✅ Seeking Alpha: My #1 source of income investment information. I've been a subscriber for more than 7 years and my favorite feature is the collection of analysis articles for any given stock or fund. https://link.seekingalpha.com/R42XQZ/4G6SHH/ ✅ Snowball Portfolio Tracker: Keep track of your stocks, ETFs, CEFs, MLPs, etc in one easy-to-use place. View upcoming dividend payouts, daily/monthly/yearly income. Subscribe to the Free Account, and the 10% Discount will appear: https://armchairincome.link/snow (or enter "armchairincome" for the Promo Code) ------------------------------------------------------ The information on this Youtube channel and the resources available, are for educational and informational purposes only, and should not be construed as financial advice. No information provided by the channel should be considered as a recommendation that any particular security or investment is suitable for any specific person. Always do your own research before investing. Some links provided above may be associated with affiliate programs. If so, use of those links will not incur any additional cost to the user (and will, in many cases, provide a benefit to the user) and may result in a referral commission to this channel. Examples of companies with affiliate links offered on this channel include Snowball, and Seeking Alpha. The content of this channel represents the presenter’s opinions, which may not reflect those of the companies with which the channel has an affiliate relationship. If any episodes on this channel are sponsored, there will be a verbal disclosure during the video, and a written disclosure in the description of that video, identifying the sponsor. All opinions and views mentioned in this video or corresponding reports constitute our judgments as of the date of publication and are subject to change at any time. Information within this material is not intended to be used as a primary basis for investment decisions and should also not be construed as advice meeting the particular investment needs of any individual investor. Trading signals produced by Armchair Income are independent of other services provided by Armchair Income or its affiliates, and positioning of accounts under their management may differ. Please remember that investing involves risk, including loss of principal, and past performance may not be indicative of future results. Armchair Income, its members, officers, directors and employees expressly disclaim all liability in respect to actions taken based on any or all of the information provided here. AI music made by Suno #armchairincome #seekingalpha #snowball #ad #IncomeInvesting #HighYieldInvestments