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Stock impact report

BDC leverage reform grows divide between large and small players [Reuters]

Goldman Sachs BDC, Inc. (GSBD) 
Last goldman sachs bdc, inc. earnings: 2/20 05:32 pm Check Earnings Report
US:NYSE Investor Relations: goldmansachsbdc.com
Company Research Source: Reuters
BDC leverage reform grows divide between large and small players - Reuters 5 Min Read NEW YORK, May 20 (LPC) - A legislative change that has doubled the leverage cap for Business Development Companies (BDC) is set to fuel further bifurcation between larger and smaller platforms, as many start to get approval to increase debt on the balance sheet. Larger BDCs benefit from their management of bigger asset pools to attract a lower cost of debt funding compared with smaller rivals, handing them an advantage when pricing on individual transactions. “There are several BDCs managed by firms that pay a huge amount of fees to Wall Street banks every year, so those banks are going to be there for the BDCs from a funding perspective. There are benefits to having affiliations with a larger platform,” said Meghan Neenan, managing director and North American head of non-bank financial institutions at Fitch. BDCs, which lend to middle market companies, favor the use of leverage because of the lower Show less Read more
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