OXLC - Still Bearish On Oxford Lane Capital's Insane Yield
2024-01-23 07:30:08 ET
Summary
- Oxford Lane Capital, a fund investing in riskier assets, may not be an ideal opportunity for investors due to its unsustainable financial performance.
- OXLC has consistently paid out more capital than it brings in, relying on new investor funds to cover payouts for existing investors.
- Despite a difficult year from an interest rate perspective, Oxford Lane Capital's default rates remained low, but the bleeding for the company is expected to continue.
Oxford Lane Capital overview
I have never been the kind of investor who has prioritized yield over total returns. But then again, there are all sorts of people out there with all sorts of different investment objectives. Retirees, for instance, are certain to gravitate toward income producing assets, and that just makes sense. There's nothing wrong with having a different taste when it comes to investing. Having said that, not every high yielding prospect is going to be an ideal opportunity for investors. A great example of this can be seen by looking at Oxford Lane Capital ( OXLC ), a fund that invests its capital into riskier assets, mostly into CLOs (collateralized loan obligations)....
Still Bearish On Oxford Lane Capital's Insane Yield