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1. Company Snapshot

1.a. Company Description

Oxford Lane Capital Corp.is a close ended fund launched and managed by Oxford Lane Management LLC.It invests in fixed income securities.


The fund primarily invests in securitization vehicles which in turn invest in senior secured loans made to companies whose debt is rated below investment grade or is unrated.Oxford Lane Capital Corp was formed on June 9, 2010 and is domiciled in the United States.

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1.b. Last Insights on OXLC

Oxford Lane Capital Corp.'s recent performance has been negatively impacted by persistent net asset value (NAV) erosion and principal risk. The company's investment in CLO equity tranches makes it highly sensitive to interest rates, credit risk, and market volatility. Despite a high yield, OXLC's long-term capital preservation is concerning. A recent 1-for-5 reverse stock split and distribution cuts highlight challenges. Additionally, high incentive fees have resulted in minimal net economic returns for investors compared to distributions paid.

1.c. Company Highlights

2. Oxford Lane Capital Corp. Earnings Report: A Closer Look

Oxford Lane Capital Corp. reported a GAAP total investment income of $128.3 million for the quarter ended September, up $4.3 million from the prior quarter. The company's core net investment income was $120 million or $1.24 per share, missing analyst estimates of $2.46. The weighted average yield of CLO debt investments was 17.4%, up from 16.9% in the prior quarter, while the weighted average effective yield of CLO equity investments was 14.6%, down from 14.7%. The net asset value per share decreased to $19.19 from $20.60 in the prior quarter.

Publication Date: Nov -24

📋 Highlights
  • NAV Decline: Net asset value per share fell to $19.19 from $20.60 in the prior quarter.
  • Investment Income Growth: GAAP total investment income rose by $4.3M to $128.3M, driven by $124.6M from CLO equity and warehouse investments.
  • Core NII Outperformance: Core net investment income reached $120M ($1.24/share), significantly higher than GAAP NII of $81.4M ($0.84/share).
  • CLO Yield Shifts: CLO debt yield increased to 17.4% (up from 16.9%), while CLO equity yield dipped to 14.6% (from 14.7%).
  • Share Activity: Net share repurchases of 500K (value $6M) after issuing 700K shares for $14.5M and repurchasing 1.2M shares for $20.5M.

Investment Portfolio Performance

The company's investment portfolio is primarily composed of CLO equity, debt, and warehouses. During the quarter, Oxford Lane invested $145.2 million in these assets and received $173.5 million from sales and repayments. The U.S. loan market performance was steady, with the loan price index decreasing to 97.06% from 97.07% in the prior quarter. The company's participation in over 25 resets and refinancings aimed to lengthen the weighted average reinvestment period of its CLO equity portfolio.

Valuation and Dividend Analysis

Oxford Lane Capital Corp.'s current P/B Ratio is 0.61, indicating that the stock may be undervalued relative to its book value. The company's Dividend Yield is 40.27%, suggesting an attractive income opportunity for investors. The Board of Directors declared monthly common stock distributions of $0.40 per share for January, February, and March 2026.

Market Outlook and Investment Strategy

According to Jonathan Cohen, the company is selective and discerning in its investments, taking advantage of compelling opportunities in the primary and secondary markets. The pipeline has changed over the past 9-12 months, with a shift in focus from the primary market to the secondary market due to macroeconomic factors and a repricing wave. As of September 30, Oxford Lane Capital Corp. had $366 million in new investments yet to make their first payments.

Earnings Growth and Estimates

Analysts estimate next year's revenue growth at 37.7%. The actual EPS came out at $1.24, relative to estimates at $2.46, indicating a challenging quarter for the company. The company's focus on total return and active portfolio management aims to maximize returns for investors.

3. NewsRoom

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Want $4,000 per Year in Passive Income? Invest Just $2,500 in These High-Paying Dividend Stocks

Nov -30

Source: 247wallst.com

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Forget Market Speculation: My Dual-Pick Strategy For +15% Yield

Nov -20

Source: seekingalpha.com

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3 Closed-End Fund Buys In October 2025

Nov -14

Source: seekingalpha.com

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OXLC: I Shrink, Therefore I Am

Nov -11

Source: seekingalpha.com

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Oxford Lane Capital Corp. 6.75% Notes due 2031 (NASDAQ:OXLCL) Trading Down 0.3% – Here’s What Happened

Nov -04

Source: defenseworld.net

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Oxford Lane Capital Corporation (OXLC) Q2 2026 Earnings Call Transcript

Nov -03

Source: seekingalpha.com

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Don't Be A Seller: This CLO Fund Is Trading At A 2020 Crisis Price - OXLC

Oct -30

Source: seekingalpha.com

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Oxford Lane Capital Corp. Schedules Second Fiscal Quarter Earnings Release and Conference Call for November 3, 2025

Oct -21

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.30%)

6. Segments

Investment and Related Activities

Expected Growth: 7.3%

Growing demand for collateralized loan obligations and increasing investor appetite for credit investments drive Oxford Lane Capital Corp's growth. The company's expertise in originating and investing in debt securities positions it for continued expansion.

7. Detailed Products

Collateralized Loan Obligations (CLOs)

Oxford Lane Capital Corp. invests in Collateralized Loan Obligations (CLOs), which are securities backed by a pool of loans, providing a diversified portfolio of debt investments.

Corporate Debt

The company invests in corporate debt securities, including bonds and loans, to generate income and capital appreciation.

Equity Investments

Oxford Lane Capital Corp. invests in equity securities, including common stocks and preferred stocks, to generate long-term capital appreciation.

Real Assets

The company invests in real assets, including real estate investment trusts (REITs) and infrastructure investments, to generate income and diversify portfolios.

Structured Credit

Oxford Lane Capital Corp. invests in structured credit products, including mortgage-backed securities and asset-backed securities, to generate income and capital appreciation.

8. Oxford Lane Capital Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Oxford Lane Capital Corp. is moderate, as there are alternative investment options available to investors, but the company's unique investment strategy and diversified portfolio mitigate this threat to some extent.

Bargaining Power Of Customers

The bargaining power of customers is low, as Oxford Lane Capital Corp. is a business development company that provides financing to small and medium-sized businesses, and these customers have limited negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as Oxford Lane Capital Corp. relies on a diverse range of suppliers for its investment activities, but the company's scale and reputation give it some negotiating power.

Threat Of New Entrants

The threat of new entrants is high, as the investment management industry is highly competitive and new entrants can easily enter the market, posing a threat to Oxford Lane Capital Corp.'s market share.

Intensity Of Rivalry

The intensity of rivalry is high, as Oxford Lane Capital Corp. operates in a highly competitive industry with many established players, and the company must continually innovate and differentiate itself to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.62%
Debt Cost 9.56%
Equity Weight 81.38%
Equity Cost 9.56%
WACC 9.56%
Leverage 22.88%

11. Quality Control: Oxford Lane Capital Corp. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 5.6

Quality: 8.5

Yield: 10.0

Momentum: 6.5

Volatility: 9.7

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Bain Capital Specialty Finance

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Value: 7.2

Growth: 6.3

Quality: 8.0

Yield: 10.0

Momentum: 2.5

Volatility: 9.3

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A-Score: 7.1/10

Value: 6.5

Growth: 4.3

Quality: 7.1

Yield: 10.0

Momentum: 5.0

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Great Elm Capital

A-Score: 6.7/10

Value: 7.0

Growth: 7.3

Quality: 6.2

Yield: 10.0

Momentum: 3.0

Volatility: 6.7

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Oxford Lane Capital

A-Score: 5.6/10

Value: 5.3

Growth: 2.7

Quality: 7.0

Yield: 10.0

Momentum: 0.5

Volatility: 8.3

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Rand Capital

A-Score: 5.6/10

Value: 7.8

Growth: 5.6

Quality: 3.8

Yield: 10.0

Momentum: 2.0

Volatility: 4.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.95$

Current Price

14.95$

Potential

-0.00%

Expected Cash-Flows