Credit quality concerns overshadow 13% yield in investments

Concerns about credit quality and economic uncertainty are affecting investments in small-cap business development companies (BDCs). Investors are advised to be cautious, especially with those having lower borrower earnings. Despite a high yield of 13%, the current economic climate raises red flags for potential investors. Analysts suggest that the risks may outweigh the benefits in this sector. The article emphasizes the importance of thorough research before making investment decisions. It also notes that past performance does not guarantee future results.