Oxford Lane Capital (OXLC) trades at a deep discount to NAV. OXLC's estimated NAV per share dropped 10% month-over-month, highlighting ongoing risks in CLO equity structures and the fund's leveraged profile. Total return for OXLC is consistently far lower than its headline distribution yield, with long-term IRRs in the 4–7% range despite high payouts.
Diversify your portfolio with Risk-On (OXLC) and Risk-Off (DX). DX (Agency MBS) is a low-credit-risk interest rate play. OXLC (CLO Equity) is a pure credit-risk high-yield bet.
Oxford Lane Capital Corporation (OXLC) Q2 2026 Earnings Call Transcript
Oxford Lane Capital Corporation offers a super high yield but faces ongoing net asset value (NAV) erosion and principal risk. OXLC invests in CLO equity tranches, making it highly sensitive to interest rates, credit risk, and market volatility, especially in non-zero rate environments. Recent reverse split and distribution cuts highlight challenges and reinforce concerns about long-term capital preservation despite attractive income.
Oxford Lane Capital (OXLC) offers a 28% yield but suffers from severe long-term price erosion, making it unsuitable for robust income generation. OXLC invests almost entirely in risky CLO equity tranches, resulting in volatile returns and significant principal decay over time. Even when re-investing distributions, OXLC has produced a negative total return since IPO.
I aim to inform investors about collateralized loan obligations (CLOs) and their fundamentals. I will analyze some of the most popular CLO symbols to provide actionable insights. The article explores the structure and investment potential of CLOs for retail 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 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.
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 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.
OXLC common stock is a technical swing trade idea, not a long-term investment, targeting a quick mean reversion to premium pricing. The stock is currently trading at a rare discount to NAV, with historical data showing rapid rebounds to premium levels favored by retail traders. Recent stock offerings and repurchase programs suggest management aims to maintain premium pricing, creating short-term trading opportunities.
What defines distribution coverage? OXLC puts out a few different numbers, and these have changed a bit over time. We dive into some of them and tell you why we believe a distribution cut is coming.