BDCs function like closed-end lenders: they raise capital, lend it to private companies at floating interest rates, and are legally required to distribute at least 90% of taxable income to maintain their tax-advantaged status. This structure makes BDC income highly predictable in its sourcing, if not its magnitude.
BofA Securities is the investment banking and capital markets division of Bank of America, one of the largest financial institutions in the United States. The division provides a comprehensive range of services. These include equity and debt underwriting, mergers and acquisitions advisory, sales and trading, research, and capital markets solutions to corporate, institutional, and government clients worldwide. As a major player on Wall Street, BofA Securities competes with other bulge-bracket investment banks and maintains significant market share across various financial services sectors.
The aftermath of the 2008 banking crisis led to large corporations benefiting from bank consolidations while smaller businesses faced significant losses, highlighting a major shift in the lending landscape.