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Baby bonds provide accessible entry into the highest tier of the corporate capital structure. Known for their steady CD-beating interest payments, these securities can offer substantial capital upside if purchased at today's deeply discounted prices. Baby bonds are a must-have in a diversified portfolio, and we are building a custom maturity ladder at HDO.
You need income, but first, you need to understand what you're investing in. I often invest against the grain and unlock massive income doing so. Years of positive total return and massive income help prove our Income Method is highly applicable and successful.
Oxford Lane Corporation's baby bond is misunderstood and offers great value. These bonds have an 8.93% yield to maturity and a relatively short maturity of 1/31/2027. Given the massive coverage (extremely low leverage) of OXLC's bonds, the yield is extremely high relative to the bond's safety.
Oxford Lane Capital Corporation (OXCL) Q2 2024 Earnings Conference Call November 1, 2023 9:00 AM ET Company Participants Jonathan Cohen - Chief Executive Officer Saul Rosenthal - President Bruce Rubin - Chief Financial Officer Joe Kupka - Managing Director Conference Call Participants Mickey Schleien - Ladenburg Matthew Howlett - B. Riley Jonathan Cohen Thanks very much.
We review CEF market valuation and performance through the third week of October and highlight recent market action. All CEF sector NAVs were down on the week, while only three sectors managed to tighten. Investor should not take CEF performance against benchmarks at face value.
Oxford Lane Capital operates as a fund that allocates capital to riskier prospects, primarily collateralized loan obligations (CLOs). The company has a high yield of 19.5% but has significantly underperformed the S&P 500 over the past ten years. Distributions have exceeded net investment income and realized gains, leading to the need for capital inflows from stock issuances to sustain the payouts.
Collateralized loan obligations, or CLOs, are complex and challenging for retail investors, and even many writers and commentators, to understand and explain. Oxford Lane Capital Corporation and Eagle Point Credit were the first two funds to introduce CLOs to the retail investing community. I like the CLO asset class and own a lot of it via closed-end funds.
Oxford Lane Capital Corp is attracting investors based on its high reported yield. The investment securities underpinning OXLC's performance, collateralised loan obligations, are complex and risky. Management fees are high and misaligned with shareholder interests.
I have identified several high yield investment opportunities for my income compounder portfolio during the recent market downturn. The income compounder method allows for continuous growth and reinvestment of distributions to generate a growing income stream for retirement. I highlight three high yield CLO-based investments in my IC portfolio: Eagle Point Credit Company, Oxford Lane Capital Corp, and Carlyle Credit Income fund.
We review the CLO Equity CEF sector, which got a new addition recently with CCIF. The sector's valuation has deflated recently, though most funds continue to trade at premiums. CLO Equity CEF returns have beaten nearly all other credit CEFs over the longer term; however, they lag the yields of the funds.