Ares Capital and Main Street Capital hold floating-rate portfolios yielding over 10%, positioning them to capture higher income if the Federal Reserve resumes rate hikes. Ares reported a portfolio yield of 10.3% at cost in its second-quarter 2026 earnings release, while Main Street's lower-middle-market debt carried a weighted-average effective yield of 12.6% in the same period. Both business development companies reported non-accrual rates below the 2.8% sector median, with Ares at 2.4% of amortized cost and Main Street at 1.1% of portfolio fair value. Ares held roughly $6 billion in liquidity and core earnings of $0.47 per share covered its $0.48 quarterly dividend, while Main Street's distributable net investment income of $1.04 per share supported its regular monthly dividend and a $0.30 supplemental. The Federal Reserve has held the federal funds rate steady at 3.50% to 3.75% throughout 2026 after cutting rates three times in 2025.
Ares Capital CorporationFloating-rate portfolio yields 10.3%, positioned to benefit if Fed resumes rate hikes.
Main Street Capital CorporationFloating-rate portfolio yields 12.6%, positioned to benefit if Fed resumes rate hikes.
Ares Management LP
FS KKR Capital Corp
NVIDIA Corporation