PFFA: High Income, But NAV Erosion Remains A Risk If Rates Continue To Rise

Pennant Park Floating Rate Fund's (PFFA) high income distribution is at risk of erosion if interest rates continue to rise, according to analysts at Seaport Global Securities.

The firm downgraded the company's stock to 'Neutral' from 'Buy', citing concerns about the company's exposure to interest rate risk.

PFFA is a business development company that invests in middle-market companies across various industries.

The company's income distribution is sensitive to changes in interest rates, as it borrows funds to invest in its portfolio companies.