Trends with Benefits Trends with Benefits #74: Accessing the BDC Market with Kipp deVeer

  • Ed Lopez
    Ed Lopez
    Head of ETF Product


In this episode, Ed speaks with Kipp deVeer, CEO Ares Capital Corporation about how investors can better understand the potential income opportunities and risks of investing in BDCs.

In this episode of Trends with Benefits, Kipp deVeer, CEO of Ares Capital Corporation joins me to talk about the income potential of business development companies (BDCs). It’s an area we’ve seen increased interest in particularly given the current average yields of BDCs relative to the low yields and interest rate risk currently plaguing traditional fixed-income.

With average yields over 8%, BDCs, at first glance, may strike some as too good to be true so I wanted to dig in to help understand what goes into a BDC’s ability to produce these kinds of yields. Kipp walks through the basics of BDCs– explaining everything from what BDCs are to breaking down their capital structures, how they operate and how to evaluate them.

We discuss how BDC portfolios are largely structured with floating rate loans and the potential benefits and risks associated with rising interest rates. Understanding the markets BDCs are actively lending into is important and Kipp describes the ‘middle markets’ and some of the trends in banking that have supported the growth of the BDC space and that have allowed companies like Ares to become key source of lending to these companies.

GET THE POD Subscribe to Trends with Benefits

Important Definitions & Disclosures


Please note that Van Eck Securities Corporation (an affiliated broker-dealer of Van Eck Associates Corporation) may offer investments products that invest in the asset class(es) discussed in this podcast.

The views and opinions expressed are those of the speaker(s) but not necessarily those of VanEck. Commentaries are general in nature and should not be construed as investment advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. Any discussion of specific securities/financial instruments mentioned in the commentary is neither an offer to sell nor a solicitation to buy these securities. Fund holdings will vary. All indices mentioned are measures of common market sectors and performance. It is not possible to invest directly in an index. Information on holdings, performance and indices can be found at

All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future performance.

Van Eck Associates Corporation