Top Heavy BDCs

This article in InvestmentNews on business development companies (BDCs) sounded promising - and made its way around email inboxes last week - but ultimately didn't provide much new information.  The article's title states that BDC sales are on a tear, but sales in BDCs are top heavy.  According to the article's table, two firms Franklin Square and CNL, accounted for 93% of all BDC sales in the third quarter, and Franklin Square alone accounted for 63% of sales.  Sponsors may be rushing to offer BDCs, but they better have a plan to take sales away from Franklin Square, because its dominance is unrelenting.

The following sentence/paragraph at the end of the article needs clarification:

BDCs invest in the debt and equity of small to mid-market companies, with the instruments ranging from the senior secured level to below investment grade or “junk,” an asset class typically not available to retail investors.

All BDCs invest in debt, and to a much lesser extent equity, of non-rated, small and middle-market private companies.  Whether the debt is senior secured or unsecured subordinated debt, it's debt from companies below investment grade.  Senior secured debt issued by a "junk" company is still considered "junk" debt.

Finally, what's up with Corporate Capital Trust's 149% payout?  I guess I have some homework.