OFS Credit Company, Inc. (1XK)
XFRA 
Summary
1XK Chart
OCCI: The Double-Digit Yield May Not Be Worth The Risk (Rating Downgrade)
OCCI's high 23.3% yield is enticing, but persistent NAV declines and poor earnings signal increasing risk in the current high-rate environment. The fund's heavy exposure to below-investment-grade CLOs and reliance on costly preferred stock financing heighten vulnerability to defaults and further losses. Dividend coverage has weakened, and a cut appears likely if earnings don't improve, undermining the fund's core income appeal for investors.
OCCI: Income Investors Should Seriously Consider CLO Equity Despite Perceived Risk
Despite market volatility, CLO equity tranches offer high-yield income and portfolio diversification with relatively low risk, making them a compelling investment option. OFS Credit Company Inc. is recommended for its strong distribution coverage, stable NAV, and recent low-cost investments in new CLOs. Active management in CLOs allows for portfolio adjustments during economic downturns, potentially outperforming other asset classes in a recession.
OCCIM & OCCIN: Puppies Of A Lesser Dog
Our previous articles on OCCI have consistently held a bearish view due to its history of value destruction. The fund has recently hit new lows, comparable to the depths of the COVID-19 market crash. We look at the secondary securities, or puppies as we like to call them.
OFS Credit Company, Inc. (1XK) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
When is the next earnings date?
Has OFS Credit Company, Inc. ever had a stock split?
OFS Credit Company, Inc. Profile
| XFRA Exchange | US Country |
Overview
OFS Credit Company, Inc. operates as a part of OFS Advisor, focusing on the investment in and management of credit-focused strategies. The entity is structured as a fund, aiming to pool resources to invest in a diversified portfolio of credit instruments. By leveraging the expertise of OFS Advisor, OFS Credit Company, Inc. seeks to offer its investors exposure to a range of credit markets, implementing a strategic approach to achieve favorable returns through both interest income and capital appreciation.
Products and Services
- Credit Investment Funds
These are funds specifically focused on investing in various credit instruments, including but not limited to high-yield bonds, leveraged loans, and structured credit products. The objective is to generate returns through interest income and, in some cases, capital appreciation by taking strategic positions in credit markets. OFS Credit Company, Inc. utilizes its affiliation with OFS Advisor to identify and manage these credit investment opportunities.
- Managed Accounts
OFS Credit Company, Inc. offers managed account services for individuals and institutions seeking personalized investment management in the credit markets space. This service includes portfolio customization according to the specific risk and return objectives of the client, leveraging the extensive knowledge and resources of OFS Advisor to tailor each investment strategy.
