More Worrying News For Business Development Company Investors As Moody’s Issues A Negative Outlook on BDCs

Following Moody’s downgrade of the business development company outlook to negative, Shepherd Smith Edwards and Kantas is helping investors pursue claims against brokers for unsuitable BDC recommendations. Their legal team investigates instances of overconcentration and failure to disclose risks, seeking to recover losses through arbitration for affected retail and accredited investors.

For investors of risky, high-yield non-traded business development companies( non-traded BDCs), credit ratings agency Moody’s decision to downgrade its outlook on BDCs from stable to negative is creating even more concerns over their involvement in the private credit market. Many investors were sold their non-traded BDCs by financial advisors, who have come under scrutiny over whether they conducted the proper due diligence before involving customers.