KBRA takes issue with concerns on BDC valuation

Bond rater says level 3 valuations vary only slightly and reasonably from one BDC to another.

KBRA has concluded, after the study of a large sample of investment portfolios of business development companies, that the valuation of assets is rigorous, reasonable and remarkably consistent throughout the industry.

This conclusion is in contrast to a Bloomberg report earlier this year that made the case (anecdotally) that “fund managers… are often valuing their loans more generously than others do.”

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