FSCO: Discount Narrowing But The Fund Could Deserve A Premium

2025-03-02 10:03:24 ET

Summary

• FS Credit Opportunities Corp. has seen strong performance since coming to the public stage, outpacing its peers quite handily.
• FSCO's diversified credit strategy, leveraging both public and private credit, aims for high current income and capital appreciation, with significant exposure to floating rate assets.
• The fund's discount has narrowed massively, but I believe they could become a fund that trades at a premium regularly like its peers and more complex cousin funds.

Written by Nick Ackerman, co-produced by Stanford Chemist

FS Credit Opportunities Corp. ( FSCO ) is a closed-end fund with an inception date that goes back to December 2013. However, it only became a publicly listed CEF in November 2022, spending much of its existence as a private fund. They focus on senior loan exposure but are a bit unique from their other publicly traded CEF senior loan peers, with their private credit exposure comprising nearly 60% of the fund's invested capital....

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