OXLC 23%: The American Pie In The Sky

Trapping Value
Investing Group Leader
(9min)

Summary

  • OXLC's NAV has dropped sharply recently.
  • Massive share issuance continued despite previous buyback announcements.
  • The fund's high headline yield is unsustainable, with a likely distribution cut and potential reverse split looming due to declining NAV and payout coverage issues.
  • Most investors relying on distributions have seen poor real returns, as price decay and payout cuts erode income, making OXLC unattractive versus safer alternatives.
  • Conservative Income Portfolio members get exclusive access to our real-world portfolio. See all our investments here »
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Oxford Lane Capital Corporation (NASDAQ:OXLC) is a fascinating fund to follow. As far as CLO funds go, it has indeed performed far better than the rest. Yet, that is not the only perspective that investors should focus on. What they should focus on is

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This article was written by

Trapping Value
45.54K Followers

Trapping Value is a team of analysts with over 40 years of combined experience generating options income while also focusing on capital preservation. They run the investing group Conservative Income Portfolio in partnership with Preferred Stock Trader. The investing group features two income-generating portfolios and a bond ladder.

Trapping Value provides Covered Calls, and Preferred Stock Trader covers Fixed Income. The Covered Calls Portfolio is designed to provide lower volatility income investing with a focus on capital preservation. The fixed income portfolio focuses on buying securities with high income potential and heavy undervaluation relative to comparatives. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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