- Rising interest rates increase the risk of return on closed-end funds because of a decline in held-assets value and a higher cost of capital.
- Oxford Lane has a history of strong and consistent earnings growth, with upcoming ‘first-time’ payments that counter the rising interest rates.
- The company has also hedged against the rising interest rates with forward yield curves.
- Oxford also holds float-rate CLOs that will increase its cash flows with rising interest rates.
- Adding Oxford to your portfolio will not only result in steadily growing monthly dividends but is also likely to add value to your portfolio in the form of capital appreciation.
For further details see:
Oxford Lane Capital: My Favorite CEF For 2022