News and Analysis
BDCs look to adjust dividends in wake of Fed cuts
- David Brooke
- +Anna Russi
•4 min read
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With the Federal Reserve cutting the benchmark rate by 25bps last month, markets are now having to learn to adapt to the dovish era.
For business development companies (BDCs) that provide floating rate loans to US mid-market companies, that might require somewhat of a big adjustment for management teams and their investors.
Blackstone was the first to signal of what might be in store for the BDC market. Last month, the private credit giant announced it will reduce its quarterly dividend per share from $0.22 to $0.20 for its non-traded BDC Blackstone Private Credit Fund (BCRED).
