OXLC Stock Recent News

OXLC's 11% distribution cut was driven by falling short-term rates, falling NAV, rising leverage costs, and sector-wide income pressures, making the move unsurprising. OXLC's common shares now trade at a rare 15% discount, presenting a tactical opportunity but not a long-term strategic hold. We prefer CLO CEFs like EIC and XFLT for their lower fees and favor OXLC bonds over common shares for defensive investors.

Oxford Lane Capital Corporation (NASDAQ:OXLC ) Q1 2025 Earnings Call July 23, 2025 9:00 AM ET Company Participants Jonathan Cohen - CEO & Interested Director Bruce Rubin - Corporate Secretary, Chief Accounting Officer, Treasurer & CFO Joseph Kupka - Managing Director of Oxford Funds, LLC Conference Call Participants Erik Zwick - Lucid Capital Markets, LLC Operator Good morning, and thank you all for attending the Oxford Lane Capital Corp. Announces net asset value and selected financial results for the first fiscal quarter and declaration of distributions on common stock. My name is [ Brika ], and I will be your moderator for today.

OXLC's Q2 2025 report revealed an 11% dividend cut and a 1-for-5 reverse stock split, reflecting ongoing NAV per share declines. The dividend cut was justified, as payout exceeded portfolio yield, but I question if the reduction was sufficient for long-term sustainability. Despite falling NAV, fixed-income holders (baby bonds and preferreds) remain well-covered, with asset coverage ratios far above regulatory minimums.

OXLC reported its results and gave investors the news they did not want to hear. The fund cut its distribution and announced a reverse split. GAAP NII of $0.16 per share quarterly ($0.64 annual) is closer to a sustainable payout, hence the new $0.96 annual distribution may still be at risk.

GREENWICH, Conn., July 23, 2025 (GLOBE NEWSWIRE) -- Oxford Lane Capital Corp. (NasdaqGS: OXLC) (NasdaqGS: OXLCP) (NasdaqGS: OXLCL) (NasdaqGS: OXLCO) (NasdaqGS: OXLCZ) (NasdaqGS: OXLCN) (NasdaqGS: OXLCI) (NasdaqGS: OXLCG) (“Oxford Lane,” the “Company,” “we,” “us” or “our”) announced today the following financial results and related information:

Nuveen AA-BBB CLO ETF is a relatively new CLO fund from Nuveen. The low expense ratios and high-quality underlying assets are a plus. We tell you how the big picture is looking for ominous for ECC and OXLC.

Welcome to history class; it's time to learn a few details you may have missed in our prior articles on Oxford Lane Capital. Credit risk is essential to a credit-exposed investment. We collect marvelous income from wondrous holdings.

OXLC's RIC structure forces high payouts but erodes NAV, making long-term buy-and-hold strategies risky and often unprofitable. Recent total returns have been strong (14.5% annual), but long-run returns are mediocre due to persistent NAV decline and high management fees. OXLC's debt notes and preferred shares offer better risk-adjusted returns than common stock, with less exposure to NAV erosion and steady income.

OXLC offers a massive 26% yield, but this comes at the cost of steadily eroding principal and NAV over time. The fund invests in CLO equity tranches, making it highly sensitive to credit risk and interest rate volatility, amplifying both gains and losses. Despite positive total returns over ten years, OXLC significantly underperforms broad market indices like the S&P 500 and charges a hefty fees.

My strategy targets 7-10% yields to balance income growth and dividend safety for early retirement. Oxford Lane Capital (OXLC) offers a tempting 26% yield, monthly payouts, and recent distribution increases, appealing to income-focused investors. Despite these attractive features, I avoid OXLC due to concerns about the sustainability of its high yield and risk of income reduction.