Oxford Lane Capital Derives 97% of Income From Riskiest CLO Tranches as Credit Cycle Turns
Oxford Lane Capital Corp. generated $114.3 million of its $117.8 million investment income from CLO equity tranches in the latest reporting period. The closed-end fund's concentration in the most junior debt positions exposes shareholders to full loss potential if underlying loan defaults accelerate. CLO equity absorbs first losses before senior tranches take hits.
ViaNews Editorial Team (Finance)•