Reported 16 days ago
Prospect Capital Corp. saw its shares decrease by over 16% after announcing a 25% dividend cut, marking its first reduction in seven years. This adjustment is aimed at shifting investments towards safer loans and responding to recent Federal Reserve rate cuts. As the private credit fund contends with scrutiny over borrower practices and credit ratings, analysts note that the cut to 4.5 cents per share may help maintain its investment-grade status. The firm's net investment income also fell by 28% year-over-year, further impacting investor confidence.
Source: YAHOO