After the 2008 financial crisis, large corporations benefitted from bank consolidations, leaving small and medium-sized businesses without support. The Business Development Company sector emerged to provide debt financing to these neglected companies. BDCs are required by law to distribute 90% of their profits, resulting in high yields for shareholders. The financial landscape has also changed, with credit cards now offering impressive cash back rewards and incentives, making them attractive to consumers looking for value in their financial products.
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.
The Business Development Company sector emerged as a vital financing alternative for small and medium-sized businesses that larger banks abandoned following the 2008 financial crisis.
Registered BDCs distribute 90% of their profits to shareholders, which often results in attractive double-digit yields, fulfilling investors' appetite for high returns.
Post-2008, credit cards now offer extraordinary rewards, including up to 6% cash back and travel incentives, highlighting a competitive financial services market.
#banking-consolidation #business-development-companies #financial-crisis #credit-cards #investment-returns
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