Collateralized loan obligation closed-end funds can be tight-lipped about their internal mechanics adding to an already elevated level of anxiety about the asset class. In the recent weeks, however, news flow has been coming hard-and-fast. Just in the last two weeks, the Oxford Lane Capital Corp (OXLC) has communicated three key pieces of information: Its latest NAV estimate, the unwinding of the $40m repo and a repurchase program for its preferreds. In this article we take a look at these developments in the context of the fund's preferred stocks.
Our takeaway is two-fold. Firstly, our