Leading middle market business development company Ares Capital (NASDAQ:ARCC) has seen its stock getting hammered from its February highs, even though it continues to benefit from a hawkish Fed. Accordingly, ARCC has declined nearly 25% through its recent lows, as the market de-rated it to account for the value compression within its portfolio companies. Management is confident that its relatively low leverage (targeted debt/equity: 0.9x to 1.25x) and its ample liquidity of $4.7B should proffer it more opportunities in the dislocated debt financing market.