Bar chart of the highest current yields among the business development companies this site tracks.

Private & Real Assets

Private Credit & Hard-Money Lending

Private credit is lending to borrowers who never issue a public bond — mid-sized private companies, developers, small businesses. The income is interest, and it arrives the same way a bond coupon does. What differs is the plumbing: the loans are not rated, not listed, not priced daily, and usually cannot be sold before they mature.

Interest from lending Truly passive Ordinary income Credit risk
Median BDC distribution yield (35 tracked) 12.30% Median of the listed BDCs in our universe
US high-yield index 7.08% ICE BofA effective yield · Aug 21, 2026
US investment-grade index 5.43% ICE BofA effective yield · Aug 21, 2026
High-yield spread 270 bp Option-adjusted spread over Treasuries
30-year mortgage rate 6.65% Freddie Mac survey · Aug 20, 2026

Data as of Aug 21, 2026.

The tiles above are not one measurement repeated. Where a median BDC figure appears it is a forward distribution yield computed from our own rows — the last regular distribution annualised over the current price — while the credit figures are ICE BofA index effective yields and option-adjusted spreads, and the mortgage figure is the Freddie Mac primary market survey rate. Every published series here is read from FRED, and the date above is the newest observation among them; the BDC median moves instead with our daily quote pipeline. Numbers built on different bases should be read one at a time, not lined up against each other.

Every private-credit product on this page is the same mechanism as a savings account: somebody borrows your money and pays you interest for it. The difference is who the borrower is, whether anybody else will buy the loan off you, and what happens if they stop paying.

Two ways to reach it

One is a stock you can sell this afternoon. The other is a loan you own until it matures.

Where the money comes from

A private loan pays interest because a borrower agreed to pay it. That is the whole mechanism — the same one behind certificates of deposit, corporate bonds and promissory notes. What changes as you move from a bank deposit toward a private loan is not the mechanism but the three things wrapped around it: who is on the hook, whether anyone else will buy the claim from you, and what recourse exists when the payment does not arrive.

The public end of that spectrum is visible and priced every second. The private end is negotiated one deal at a time and carried at par until something forces a write-down. Both print a percentage; they are not the same kind of number.

What sits under the label

The public-market comparison

Before reading any private quote, this is what liquid, daily-priced credit pays today.

Open bonds →

Use the rows below as a measuring stick. They are what a large, diversified, daily-priced pile of loans pays right now, so a private deal offering something similar is offering it without the daily price, the diversification or the exit. One thing to watch: the two spread lines are not yields. A spread is only the extra a lender is paid above a government bond, so it is a much smaller number than the yield rows above it and the two cannot be read down the same column.

Each row below is one published series: the label, the value, the date of that series' own latest observation, and the provider it came from. They are not points on a single scale. The index lines are effective yields — what a whole index of corporate bonds yields to maturity — the spread lines are option-adjusted spreads over Treasuries, which is the extra a lender is paid rather than the total, and the mortgage line is a weekly survey of quoted rates. The caveat that matters most: each row carries its own observation date, so two rows can be a week apart even though they sit in the same list.

Investment-grade corporate bonds 5.43% Aug 21, 2026 · FRED
High-yield corporate bonds 7.08% Aug 21, 2026 · FRED
Investment-grade spread over Treasuries 0.81% Aug 21, 2026 · FRED
High-yield spread over Treasuries 2.70% Aug 21, 2026 · FRED
30-year fixed mortgage 6.65% Aug 20, 2026 · FRED

Index yields are ICE BofA effective yields; the two spread series are option-adjusted spreads over Treasuries, shown here in percent. The 30-year mortgage rate is the Freddie Mac primary market survey — the rate a conventional borrower is quoted, and the number a private mortgage borrower is implicitly measured against. All redistributed via FRED: the corporate and high-yield series are ICE BofA index data, the mortgage series is the Freddie Mac survey.

Series identifiers, in the order shown: BAMLC0A0CMEY, BAMLH0A0HYM2EY, BAMLC0A0CM, BAMLH0A0HYM2, MORTGAGE30US.

Listed business development companies

A research screen, not a recommendation. The distribution yield shown is a forward figure — the last regular distribution annualised over the current price — and it says nothing on its own about whether that distribution holds.

Full screen →

How to read a row: the company lends money, the distribution yield is what one year of the current payment would be as a percentage of today's share price, and the annual figure is the same payment in dollars per share. What would mislead: the biggest yield in the column is not the best row. A BDC has to pay out almost everything it earns, so a large distribution describes the structure rather than the outcome, and the yield rises on its own whenever the share price falls.

Listed BDCs by research score — forward distribution yield, not trailing
Ticker Company Price Distribution yield (forward)The last distribution, annualised, over today's price. Annual rate (forward)What one share is on track to pay over a year, at that rate. Pays Income scoreOur own research screen, and the order this table is in. Not a rating.
GAIN Gladstone Investment Corp. $16.49 5.82% $0.96 Monthly 75.20
MAIN Main Street Capital Corporation $58.54 5.43% $3.18 Monthly 67.00
CSWC Capital Southwest Corporation $25.21 9.21% $2.32 Monthly 58.30
GLAD Gladstone Capital Corporation $19.84 9.07% $1.80 Monthly 57.00
ARCC Ares Capital Corporation $19.93 9.63% $1.92 Quarterly 55.30
HTGC Hercules Capital, Inc. $17.59 10.69% $1.88 Quarterly 53.00
SLRC SLR Investment Corp. $12.60 9.84% $1.24 Quarterly 51.10
BBDC Barings BDC, Inc. $9.45 11.01% $1.04 Quarterly 50.90
OCSL Oaktree Specialty Lending Corporation $13.15 10.34% $1.36 Quarterly 50.90
GBDC Golub Capital BDC, Inc. $13.11 10.07% $1.32 Quarterly 50.50
TSLX Sixth Street Specialty Lending, Inc. $18.98 9.96% $1.89 48.40
MFIC MidCap Financial Investment Corporation $9.68 12.82% $1.24 Quarterly 46.20

Prices as of Aug 25, 2026.

A short list of the business development companies we track, ordered by our own income score and then by yield, highest first. The ticker links to that company's page; price comes from the daily quote pipeline; the distribution yield and annual rate are forward figures — the last regular distribution multiplied by the number of payments a year, divided by today's price — and not the cash actually paid over the last twelve months; “Pays” is the payment frequency and the income score is our own research screen, not a rating. The caveat to carry away: a forward yield assumes the next distribution matches the last one, which is precisely the assumption a deteriorating loan book breaks.

What a BDC actually is

A business development company is a listed vehicle that lends to mid-sized private companies. It is a closed-end investment company regulated under the Investment Company Act of 1940, and it exists because Congress wanted a route for ordinary capital to reach smaller US businesses. Most of what it holds is senior secured, floating-rate loans to firms that file nothing publicly.

Its distribution is therefore mostly interest income passed through, which is why it is taxed as ordinary income rather than at qualified-dividend rates for most holders. And because a BDC that elects regulated investment company treatment has to distribute the large majority of its taxable income, the payout is a feature of the structure rather than a signal about the portfolio.

The failure modes are leverage and non-accruals. A BDC may carry roughly a dollar of debt per dollar of equity, so a modest fall in loan values is a larger fall in net asset value; and when portfolio loans stop paying they are placed on non-accrual, income falls, and the distribution loses its cover. The full BDC page works through both.

What can go wrong
A business development company lends to private, unrated, mid-sized borrowers and is permitted to do it with borrowed money. Three things break it. Non-accruals: a portfolio loan stops paying, net investment income falls, and the distribution loses its cover. Leverage: the asset-coverage rule lets a BDC carry roughly a dollar of debt for every dollar of equity, so a modest fall in portfolio value is a larger fall in net asset value. Floating rates: most direct lending is priced over a short-term benchmark, so investment income falls when short rates fall and borrower interest burdens rise when they climb. Add an external manager paid base and incentive fees, share issuance below NAV, paid-in-kind interest booked as income without cash arriving, and a market price that can sit well above or below NAV. Distributions are declared by the board and can be cut.
How it is taxed
US tax, in general terms: interest is ordinary income taxed at marginal rates, with none of the qualified-dividend treatment that applies to many common stocks. BDC distributions are mostly a pass-through of interest and are mostly taxed the same way, though a portion can be reclassified as qualified dividend, capital gain or return of capital once the year closes. Private-loan interest and origination points are ordinary income to the lender. This is a description, not tax advice.

Where private credit is researched and accessed

SEC EDGAR

Business development companies file 10-Ks and quarterly schedules of investments here, which is where loan-level marks, non-accruals and PIK income appear.

The schedule of investments is the loan-by-loan detail no summary page carries

Visit SEC EDGAR ↗
Cliffwater

An investment adviser that publishes the Cliffwater Direct Lending Index and runs interval funds holding directly originated corporate loans.

Index methodology and quarterly index reports are public

Visit Cliffwater ↗
Yieldstreet

An alternative-investment platform offering private credit, legal finance and real estate deals, most restricted to accredited investors.

Most offerings have no secondary market and lock capital until the deal repays

Visit Yieldstreet ↗
Percent

A marketplace for private credit transactions, mostly short-duration asset-backed deals, open to accredited investors.

Accredited-investor verification is required before any deal is visible

Visit Percent ↗

Listed on this page for research. A plain link is not a sponsorship, and nothing here is a recommendation to open an account or fund a loan.

Private credit — frequently asked

What is private credit?
Lending to borrowers who do not issue public bonds — mid-sized private companies, property developers, small businesses — through loans that are negotiated directly rather than traded on an exchange. The income is interest. What distinguishes it from a bond fund is not the mechanism but the plumbing: the loans are not rated, not listed, not priced daily, and generally cannot be sold before they mature.
How can an ordinary investor get exposure to private credit?
The listed route is a business development company, a 1940 Act vehicle that holds a portfolio of loans to private firms and trades on an exchange like a stock, or a fund that holds a basket of them. Off-exchange routes include non-traded and interval funds, private credit funds sold under securities exemptions, crowdfunding platforms, and direct lending against real property. The further from the exchange, the less liquidity and the less price transparency.
Is a BDC the same thing as a private credit fund?
Not quite. A BDC is a specific regulated structure under the Investment Company Act of 1940 with defined asset tests, leverage limits and shareholder protections, and the listed ones trade continuously. A private credit fund is a private placement with its own terms, lock-ups and capital calls, usually restricted to accredited investors. The underlying loans can look similar; the wrapper does not.
Why compare private lending to the high-yield index?
Because it is the closest liquid reference point. The ICE BofA US High Yield index effective yield shown on this page is what a diversified, daily-priced portfolio of sub-investment-grade corporate credit yields right now, and the investment-grade index is the same for rated borrowers. A private loan that pays a similar rate is paying it without the daily price, the diversification, or the exit.
How is private credit income taxed in the US?
Interest is ordinary income, taxed at marginal rates rather than at qualified-dividend rates. BDC distributions are largely a pass-through of interest earned by the fund and are mostly taxed as ordinary income too, though a portion can be qualified dividend, capital gain or return of capital, and the split is reported after the year ends. This is a general description, not tax advice.
What is the main way private credit goes wrong?
The borrower stops paying and there is no market to sell into. In a BDC that shows up as non-accruals, falling net investment income and a distribution that loses its cover, amplified by leverage. In a direct loan it shows up as a foreclosure project. In both cases the problem is invisible in the price until it is not, because private loans are carried at par until something forces a write-down.

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