Prospect Capital (PSEC) and the general BDC sector has always offered an intriguing high-yileld investment opportunity, yet a very confusing option. The company reported the following FQ4 results: Reports Q4 (Jun) earnings of $0.26 per share, $0.01 better than the Capital IQ Consensus of $0.25; revenues fell 2.9% year/year to $193.04 mln vs the $188.85 mln Capital IQ Consensus.Since June 30, 2016 (in the current September 2016) quarter, the co has completed new and follow-on investments of $173.8 million, sold $10.2 million of three investments, and received repayments of $40.3 million, resulting in net investments of $123.3 millionNAV on June 30, 2016 stood at $9.62 per share, an increase of $0.01 in comparison to $9.61 at March 31, 2016.The biggest issue is that interest income continues to fall. For Q2, the number fell $16 million from last year. The stock trades below the listed $9.62 book value trading at $8.47, but the complex financials make the story difficult for investors. As well, the weak interest income questions whether Prospect Capital can keep paying the dividend yield of over 11%. The interesting part of the FQ4 results is the acknowledgement of investing $68.8 million in loans from OnDeck Capital (ONDK). When a company that regularly invests in high risk loans decides to utilize the OnDeck platform to originate loans, my interest is to invest directly in the company developing the online lending platform of the future. Disclosure: Long ONDK