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At this point of the credit cycle, a lot of securities look cheap.
Business Development Companies (BDCs) are looking exceptionally cheap right now - trading at 82.7% of their net asset value and kicking off very high income of 10% to 17% at the same time.
Due to their structure as closed-end funds that pay high dividends, BDCs are designed to appeal to retail investors.
The problem is that investors often forget that high dividends come with a price - and that price is usually that the loans made by these companies are illiquid and high risk.