BDC Above-NAV Issuance Premium
StrategyLong
BDCs issuing above NAV (rare for high-quality BDCs); accretive to book value
Source: etftrends.com
BDC Buzz
ToolsTool
BDC Buzz; deep-dive BDC research; primary retail source for BDC analysis
Source: etftrends.com
BDC Capital Raise Dilution Trade
StrategyShort
BDCs issue equity below NAV destroys book value; short on dilutive raises
Source: etftrends.com
BDC Discount-to-NAV Trade
Income StrategyLong
BDCs at discount represent value if portfolio quality robust; due diligence required
Source: etftrends.com
BDC Dividend Sustainability
Income StrategyLong
Filter BDCs by NII covering dividend; avoid those funded by ROC
Source: etftrends.com
BDC Floating-Rate Tailwind
Income StrategyLong
BDCs lend at floating rates while borrowing fixed; rising rates expand spread; ARCC MAIN well-positioned
Source: etftrends.com
BDC Index Trade
Income StrategyLong
VanEck BDC Income ETF (BIZD); UBS ETRACS Wells Fargo BDC ETN (BDCS); diversified BDC exposure
Source: etftrends.com
BDC PIK Income Quality Filter
StrategyAvoid
High Pay-In-Kind (PIK) income suggests stressed borrower; avoid BDCs with >25% PIK
Source: etftrends.com
BDC Premium-to-NAV Trade
Income StrategyAvoid
BDCs trading premium-to-NAV often have credit issues hidden; sell at premium
Source: etftrends.com
BDC Recession Hedge
Income StrategyHedge
Short cyclical/lower-tier BDCs into recession; default risk concentrated in mid-market lending
Source: etftrends.com
BDC Reporter
ToolsTool
BDC Reporter; institutional-grade BDC research; portfolio company analysis
Source: etftrends.com
BDC Sector Concentration
Income StrategyHedge
BDCs concentrated in cyclicals (energy retail industrial); diversify across BDCs to mitigate
Source: etftrends.com
BDC Special Dividend Strategy
StrategyLong
BDCs paying special dividends signal undistributed taxable income; capture before ex-date
Source: etftrends.com
BDC vs Bank Stock Pair
HedgingHedge
Long high-quality BDC / short bank ETF; both lend but different beta to credit cycle
Source: etftrends.com
BDC vs CEF Cross-Hedge
StrategyLong Or Short
BDC vs senior-loan CEF spread; both float-rate income; trade relative discount cycles
Source: etftrends.com
Equity-Hedged BDC
HedgingHedge
Long BDC basket + short SPY for market-neutral income; isolate BDC alpha
Source: etftrends.com
High-Yield BDC Investing
Income StrategyLong
Business Development Companies (ARCC MAIN HTGC FSK GBDC); 8-12% yield; direct lending to mid-market
Source: etftrends.com
Internally-Managed BDC Premium
Income StrategyLong
Internally-managed BDCs (MAIN) lower fee drag; structural alpha vs externally-managed
Source: etftrends.com
Mezzanine/Equity BDC Trade
Income StrategyLong
BDCs with mezzanine and equity components; higher yield; greater volatility
Source: etftrends.com
SBA-Licensed BDC
Income StrategyLong
SBA-licensed BDCs (HRZN PNNT) access SBIC debentures at favorable rates; structural advantage
Source: etftrends.com
Senior Secured BDC Focus
Income StrategyLong
BDCs focused on senior secured lending (top of cap stack); lower yield but lower default loss
Source: etftrends.com
An encyclopedia of publicly documented strategies for education. YCAI does not recommend, endorse, or trade any of these. Not investment advice.