BDC Weekly Review: Bond Issuance Remains An Income Headwind

We take a look at the action in business development companies through the second week of September and highlight some of the key themes we are watching. BDCs declined amid rising yields, Fed rate hike expectations, and geopolitical tensions. Recent bond issuances by ARCC, CSWC, OCSL, and OTF highlight sector-wide net income headwinds from refinancing at higher rates. The turnaround in Fed expectations drove the rise in short-term interest rates, supporting net income in Q3.