OXLC Stock Recent News

The stock market is extremely volatile, with multiple economic indicators signaling a weak economy. This includes an unprecedented decrease in consumer spending of 0.1%, combined with fears of rising interest rates and inflation staying above the 2% target.

My bet on the United States economy continues to pay off — monthly! Oxford Lane Capital Corp. has outperformed its best comparison, and the market indices. This "income catalyst" can play a vital role in your retirement portfolio.

GREENWICH, Conn., May 17, 2024 (GLOBE NEWSWIRE) -- Oxford Lane Capital Corp. (NasdaqGS: OXLC) (NasdaqGS: OXLCM) (NasdaqGS: OXLCP) (NasdaqGS: OXLCL) (NasdaqGS: OXLCO) (NasdaqGS: OXLCZ) (NasdaqGS: OXLCN) (the “Company”) today announced the following net asset value (“NAV”) estimate as of April 30, 2024.

Oxford Lane Capital offers a high-yield distribution of 19%, which is well covered by core net investment income. OXLC's NAV is challenging to estimate due to the difficulty in quantifying variables that affect CLO pricing. The Fund's premium to NAV is currently low at 1.6%, making it an attractive investment for income investors.

Fixed-income portfolios with primarily shorter term bonds and term preferred stocks have reinvestment risk. Reinvestment risk is the risk that when your bonds mature that interest rates will be lower so you must reinvest that money at lower yields. This lowers your income. In my opinion the best fixed-income securities for safety and yield are term preferred stocks issued by closed end funds (CEFs) that invest in CLOs.

Don't Be An April Fool - Buy These Income Investments

I enjoy building my own pizza, just as I'm crafting a custom retirement recipe with a bond ladder and my choicest ingredients. A custom-built bond ladder is a retirement powerhouse, mitigating interest rate risk and regularly releasing capital for reinvestment. We discuss three bond issuers with up to 20% Yield-to-Maturity.

Preferreds were slightly lower this week and over February, with caution required for stocks trading above "par". The fixed-income version of the "beta anomaly" shows that the yield differential between bonds and preferreds may be too low. We highlight recent issuances from HOV and MITT.

Oxford Lane Capital and Eagle Point Credit have been able to sustain positive total returns despite price declines due to their high distributions. OXLC and ECC focus on providing high levels of sustainable income through investing in the equity debt level tranche of collateralized loan obligations. However, the equity level tranche is the riskiest of the totem pole structure.

The Fed is expected to cut rates at some point in 2024, we will see investors develop FOMO to lock in high yields from quality fixed income. 2024 is set to be the year of income, and high-quality bonds are well-positioned to offer significant total returns. We discuss two investment-grade baby bonds with up to 7% yields.