In the Margins

BDC halts redemptions

April 12, 2016

By The Wall Street Journal

Business Development Corporation of America, a $2.5 billion fund, said in a securities filing last month that it is halting redemptions for the quarter after the fund’s pre-established limit was hit. Non-traded business development companies, or BDCs, typically only allow investors to cash out every three months; this appears to be the first time one has bumped up against internal restrictions that limit the amount of shares a fund is able to redeem at one time. Read the original story from The Wall Street Journal.