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    Section 18

    The 300% Asset Coverage Test: The Leverage Rule Behind Every BDC and Interval Fund
    Regulatory & Compliance

    The 300% Asset Coverage Test: The Leverage Rule Behind Every BDC and Interval Fund

    TL;DR: The asset coverage test is the single most important leverage constraint you will find in a business development company (BDC) or interval fund prospectus. Under Section 18 of the Investment Company Act of 1940...

    Jeff Barnes, MBA·Aug 15, 2026·12 min read
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