Oxford Lane Capital Corp. 6.75% Notes due 2031

News & Events

2025-05-23 06:26:31 ET

Summary

• OXLC's common stock is risky and trades at a premium, but its baby bonds offer compelling yield with lower volatility and risk.
• OXLCG and OXLCL baby bonds provide yields of 8.79% and 8.61% to maturity, both trading below par and rated BBB by Egan-Jones at IPO.
• These baby bonds are the safest publicly traded OXLC instruments, offering returns comparable to the common stock, but with restricted leverage and greater stability.
• Switching from OXLC common stock to its baby bonds is a smart move for investors seeking higher risk-adjusted returns and income consistency.

All retail investors like CLO equity CEFs and companies like Oxford Lane Capital Corp. ( OXLC ) are always hot, even though they charge high fees and typically provide low risk-adjusted returns. We're not big fans of their common stock, but we like their fixed-income products. Today we will examine 2 of the baby bonds the company has to offer:

- the 8.76% exchange-traded debt security ( OXLCG )...

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