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Market Impact: 0.35

Private Credit Payouts Shrank All Year. The Fed's First Hike Since 2023 Changes the Math

Source: 247wallst.com

Monetary PolicyInterest Rates & YieldsCredit & Bond MarketsInvestor Sentiment & Positioning

The Federal Reserve has reversed its policy course for the first time in three years, a shift that could affect quarterly distributions from business-development-company (BDC) income ETFs. Lower policy rates would likely pressure the floating-rate income earned by private-credit lenders, creating a potential headwind for ETF investors relying on BDC dividend yields.

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