HRZN

Update: 40 Big-Yield BDCs, Silicon Valley Bank Warning

As mentioned in our previous note, BDCs are like banks, only riskier. Not only are BDCs facing increasing stress due to slowing economic growth and increasing interest rates (i.e. the tradeoff between higher floating rate interest payments received and higher default risk on loans), but some BDCs (such as those focused on venture capital) are dramatically over-exposed to fallout from the Silicon Valley Bank mess. In this note, we share updated data on 40 BDCs, and then dive deeper into 4 specific venture-capital-focused BDCs—and how we expect them to fare in light of the SVB mess—buyer beware!

Horizon BDC: 9% Yield, Paid Monthly, Attractive Growth and Income Combo

Many income-focused investors concentrate their nest eggs in the same subset of market sectors. Considering a few high-income investments in non-traditional high-income sectors can unlock tremendous value and opportunity. Horizon Technology Finance Corporation (HRZN) is a business development company, that pays a big monthly dividend, and offers an attractive combination of growth and value by focusing on development stage companies. In this report, we analyze the company’s income and growth profile, dividend prospects and finally conclude with whether the company’s stock offers an attractive balance between risks and rewards.