Higher interest rates can create problems for income investments. But some lenders have a business model that can benefit when rates rise. Business Development Companies, or BDCs, often make floating-rate loans to middle-market businesses. When benchmark rates increase, the interest collected on those loans can increase as well. That makes the Federal Reserve’s December 8–9 […]
Fed Rates
Is Now When the Fed Pauses The Rate Hikes?
It is a confusing time to be an investor, especially if your primary investing goal is generating a stream of income. We are in bear market territory on the back of successive rate hikes as I write this but there is an almost total absence of real fear. As we saw in last Friday’s 658-point […]
This Could Be the Best Fed Rate Hike Trade in 28 Years
As expected, the Federal Reserve (Fed) raised rates in it June 15th meeting. Until then, the assumption was that the Fed would incrementally increase rates by 50 basis points (bps) at the next handful of meetings. However, after the hot consumer price index (CPI) number the week prior, the Fed was pushed into a more […]







