OXLC: Deeply Misunderstood 26% Yielding Cash Machine

  • OXLC offers a massive 26% yield, but this comes at the cost of steadily eroding principal and NAV over time. The fund invests in CLO equity tranches, making it highly sensitive to credit risk and interest rate volatility, amplifying both gains and losses. Despite positive total returns over ten years, OXLC significantly underperforms broad market indices like the S&P 500 and charges a hefty fees.