Golub Capital BDC

-5.42%

1. Interest Rate Risk: Since Golub Capital provides financing primarily through loans, its income and profitability are highly sensitive to changes in interest rates.

2. Economic Risk: Golub Capital’s business is highly dependent on the health of the broader economy. In particular, its ability to originate, acquire and manage loans is influenced by the strength of demand for credit and by the availability of investors to purchase its debt securities offerings.

3. Credit Risk: Since Golub Capital is a lender, it is exposed to credit risk, or the risk that borrowers may not honor their debt obligations and may fail to repay the principal and interest.

4. Competition: Golub Capital faces intense competition from other providers of capital, including commercial banks, institutional investors, and specialty lending and investment firms.

5. Regulatory Risk: Golub Capital is subject to changing regulations and policies that could affect its business in the future. A variety of federal and state regulations and laws, such as regulations of the U.S. Securities and Exchange Commission (SEC) and state consumer-protection laws, govern its lending and other activities.