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Dip is tasty; it makes the chips even better. I love dips in the market even better, as they help to grow my income. Stop letting fear govern your portfolio; be informed and brave. You can massively boost your income with a small capital investment.
CLO equity prices are facing pressure from rising risks and default expectations. CLO equity is still generating strong cash flows for patient investors. Our CEF rotation strategy can deliver alpha during volatile market conditions.
OXLC's recent "at-the-market" stock offering raised over $500 million, increasing outstanding shares by 29%, affecting stock dynamics and presenting a shorting opportunity. Extraordinary trading volume in Oxford Lane Capital Corp. (OXLC) presented a profitable trading opportunity, particularly through its 8.75% Notes due 06/30/2030. OXLCI, with an 8.39% yield-to-call, and 8.6% yield-to-maturity is currently the most appealing OXLC-issued security.
Predicting market outcomes is challenging; my recommendations are based on historical data and probabilities rather than certainties. I reviewed my 2025 picks: 67% of Buy ratings and 78% of Hold ratings delivered positive alpha, outperforming many experts. Midstream energy and covered call income funds have shown strong performance, while recent market corrections impacted some picks.
Collateralized loan obligation CEFs offer high yields but come with significant leverage, volatility and higher risk, making them less appropriate for all income investors. Baby bonds and preferred offerings from CLO CEFs provide safer, more stable income, balancing risk-reward when it comes to seeking income. We have new offerings in the space since our last update, leading to greater diversification potential and increasing the viability of setting up a ladder of maturities.
GREENWICH, Conn., March 11, 2025 (GLOBE NEWSWIRE) -- Oxford Lane Capital Corp. (Nasdaq: OXLC) (NasdaqGS: OXLCP) (NasdaqGS: OXLCL) (NasdaqGS: OXLCO) (NasdaqGS: OXLCZ) (NasdaqGS: OXLCN) (NasdaqGS: OXLCI) (NasdaqGS: OXLCG) (the “Company”) today announced the following net asset value (“NAV”) estimate as of February 28, 2025.
Closed-end funds are ideal for investors prioritizing steady cash income over capital gains, benefiting from buying at discounts and institutional leverage terms. Distribution "coverage" is critical. But it can be complicated trying to determine what is actually sufficient versus insufficient coverage.
The Magnificent Seven stocks led a bull run from late 2022 to 2024, but 2025's market correction reveals vulnerabilities, offering opportunities in high-yield CLO equity funds. CLO equity funds, like SPMC, CCIF, and OCCI, provide high-yield income uncorrelated to stock market performance, making them attractive during market downturns. SPMC, new in 2024, has increased distributions thrice, showing strong performance and resilience, yielding about 14% despite broader market selloffs.
Oxford Lane Capital Corporation's new baby bond, OXLCG, offers a 7.95% annual interest with quarterly distributions and matures on 02/29/2032, callable from 02/28/2030. OXLCG is trading at $24.62, yielding 8.49% to maturity and 8.58% to call, making it an attractive fixed-income investment. Oxford Lane Capital Corp. maintains a strong dividend history and has a capital structure within regulatory leverage limits, ensuring creditor confidence.
Oxford Lane Capital has outperformed the market YTD, showing resilience during volatility, making it a strong buy for aggressive income investors. OXLC's dividends are robust, with a forward yield of 21.51%, and recent changes ensure distributions are from net income, not return of capital. The fund's premium has decreased, offering a better entry point for investors, though it remains volatile and unsuitable for conservative investors.