Oxford Square Capital Corp (OXSQ) offers a big 15.5% yield, but you need to be a brave contrarian if you’re going to invest. This business development company (BDC) invests in syndicated bank loans and both equity and debt tranches of collateralized loan obligations (CLO); and the shares have been dragged sharply lower because of its exposure to underperforming market segments including healthcare, software and high yield credit in general. This article provides a background on the company, analyzes its portfolio and finally concludes with our opinion on whether it’s worth risking some of your capital on this huge yield with significant share price appreciation potential.
4 Big Dividends That Have Gotten Less Expensive: Energy Transfer (ET), New Residential (NRZ), Ventas (VTR), Oxford Square (OXSQ)
The market continues to reach new all-time highs, and our investment portfolios do too. However, a handful of popular big dividend paying equities have gotten particularly less expensive in recent weeks. This week’s Weekly provides a brief update on all four of them, and whether we believe they are worth investing or avoiding altogether.
3 High-Income Plays That Just Sold-Off
If you like high income and attractively discounted prices, this article has 3 ideas for you to consider. The ideas range from equity CEFs to bonds to high-yield BDCs, but they all have two things in common: (1) high income, and (2) attractively discounted prices. Without further ado, here is the list...
Members Mailbag: Oxford Square’s 11.5% Yield
We recently received an inquiry from one of our members about BDC Oxford Square Capital (OXSQ). It’s tempting considering its huge 11.5% yield, its discounted price-to-book, and its very low market beta. However, investors need to be aware of several very important things, including the vast difference between its price and total return, the very strong relationship between OXSQ’s price-to-book value and credit spreads, and how big hedge funds, including Citadel and Millennium, are trading in and out of this name regularly.