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These Firms Borrowed to Lend to Indebted Companies. It’s Going Badly [Yahoo! Finance News]

Golub Capital BDC, Inc. (GBDC) 
Last golub capital bdc, inc. earnings: 2/7 06:41 pm Check Earnings Report
US:NASDAQ Investor Relations: golubcapitalbdc.com/investor-resources
Bloomberg) -- Renowned as risk-takers, they raised cash by selling stock, multiplied the haul with borrowed money, then used it to lend to some of the country’s most indebted companies. If all went well, they would profit handsomely.But right now, the strategy is going badly for many business development companies -- key players in the $812 billion private credit market.Analysts and ratings companies are sounding alarms as a number of the firms -- often just called BDCs -- rush to shore up their finances or throw lifelines to their borrowers. One of the largest, Golub Capital BDC Inc., is among those raising funds at a time that may significantly dilute existing shareholders. And while the Federal Reserve and government announced programs to prop up struggling companies, BDCs may not benefit much. Many companies they finance, owned in part by private equity firms, don’t qualify under current rules.It’s a bruising time for the aggressive investment vehicles that swelled in recent years Show less Read more
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