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1) interest rate rising. they are leverage 2x so they take your $100, borrow another $100, and invest $200 in BDCs (simplified explanation). That way they get twice as much yield. However, they pay interest on what they borrow so you really don't get twice the earnings but is a nice return for sure ... 18% right now? However, as interest rate rise, cost of borrowing rises increasing cost which raises fear.
2) BDCs haven't faired well for a good period of time and maybe oversold. When their value goes down 10% the leverage effect has more like 20% down. Sounds bad, but as I said BCD are on the oversold side ... i.e., low. So when they go up 10% it's more like a 20% rise ... IMO there is some upside coming. But people sell low so I can buy low and I'm happy for that.
3) It's indexed. Unlike us who can chose to hold a stock for sunnier days (unless we are on margin and face a margin call), they have to buy and sell based on the index to keep it all balanced. It is how they are set up-- nothing can be done about that.
Don't fret on ups and downs -- they happen. So play it that way and buy low, collect that sweet DIV, and sell high ... then wait for another LOW here or elsewhere and play it all again. There are always opportunities ... but some are certainly better then others 
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