A spike in volatility and drop in energy prices has created a buying opportunity for Franklin Square’s business development company (FSIC), said the company’s CEO Michael Forman. Forman added that FSIC is a portfolio of senior secured loans to middle market American companies. He said FSIC holds about 140 positions and yields a hefty 9.1% after the recent drop in BDC share prices. Forman said FSIC will do well in a period of rising rates because it invests in floating rate securities. Finally, Forman said credit markets were tighter last year and current investors are getting paid more for taking risks.
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