PSEC is lending money at an amount plus LIBOR. Interest rates are going to rise, so net interest income will rise as well. Pretty simply.
Interest rates are going to move lower from here. I do not see the fed moving on rising rates for at least 3 to 5 years... Maybe longer.
Wrong, Bernaske is on his way out and will be retired next year. Very powerful people are really upset with the artifically low interest rates and the Feds QE programs.