The ABCs Of BDC Risk

There are multiple risks for your BDC investments now and three that specifically create risk for certain BDCs. Business development companies offer high yields but carry significant, often misunderstood risks, especially in falling interest rate environments. Volatile interest rates can damage BDC profitability and distributable income, causing dividend cuts and share price declines.

Seeking Alpha • Feb 23, 2026

Stay Ahead of the Game With FS KKR Capital (FSK) Q4 Earnings: Wall Street's Insights on Key Metrics

Besides Wall Street's top-and-bottom-line estimates for FS KKR Capital (FSK), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended December 2025.

Zacks Investment Research • Feb 20, 2026

Two 20%+ Yields That Have Entered Deep Bargain Territory

Recent AI and mega-cap growth volatility has impacted income-focused asset classes, underscoring the need for high-quality value and reliable current income streams. I structure my portfolio for an 8–9% yield by combining core dividend aristocrats, strategic yield enhancers, and a minor allocation to tactical high-yield trades. In this article I elaborate on two tactical trade picks, where I see dislocated, abnormally high-yielding (20%+) opportunities.

Seeking Alpha • Feb 10, 2026

Why BDC Dividend Cuts Aren't The Red Flag Investors Think

The market is signaling distress for BDCs, but the data tells a very different story. Dividend cuts for BDCs aren't what most investors think they are. Rare, well-covered double-digit yields trading at huge discounts to NAV are quietly flashing opportunity signals.

Seeking Alpha • Feb 9, 2026

High-Yield Carnage In 2026

Multiple mortgage REITs fell by over 10% on the day. The stock driving the bus of bad dropped 33% on Friday and is continuing lower today. Preferred shares and baby bonds have consistently outperformed on a risk-adjusted basis, prompting a portfolio shift towards these instruments for better yield and stability.

Seeking Alpha • Feb 3, 2026

Wall Street Warns About a Possible Private Credit Collapse. Should Investors Worry About These Ultra-High-Yield Stocks?

Some on Wall Street appear to be concerned about a potential private credit crisis. Worrisome signs can be found in a few ultra-high-yield BDC stocks.

The Motley Fool • Feb 2, 2026

2 BDC Value Creators For Durable NAV And High Income

2 BDC Value Creators For Durable NAV And High Income

Seeking Alpha • Feb 2, 2026

Ares Capital Vs. FS KKR: Buy The Winner, Avoid The Outsider

Ares Capital is the BDC sector's gold standard, while FS KKR Capital faces persistent discounts and capital erosion. ARCC's highly diversified portfolio of 587 companies and lower non-accruals (1.0%) signal superior credit quality versus FSK's 224 companies and 2.9% non-accruals. Both ARCC and FSK are sensitive to falling interest rates, but ARCC's portfolio structure and credit policy provide greater resilience.

Seeking Alpha • Feb 1, 2026

FS KKR: Investing In The Bonds Looks Better Than Trading The Bottom Now

FS KKR Capital stands out in the BDC sector with $13.09B in assets and diversified holdings across 23 industries. FSK's over-the-counter bonds, all rated Baa3 by Moody's, offer yields up to 6.76%—among the highest in the BDC universe. Core credit metrics are solid: 3.56% average net income/assets, 189% asset coverage ratio, and 2.9% non-accrual loans.

Seeking Alpha • Jan 28, 2026

Two 12%+ Dividends Going From Bargains To Buys

Investors are currently adopting a more conservative stance, favoring high-quality value and durable income. However, this rotation coupled with lower interest rates echoes a bit 2022's system-wide yield compression (when high-quality income was overcrowded due to a desparate search-for-yield activity). So, finding double digit dividends that are backed by strong fundamentals has become more difficult.

Seeking Alpha • Jan 23, 2026