FS Credit Opportunities Corp

FSCO

Market cap $1.28B

PHILADELPHIA, Jan. 12, 2026 /PRNewswire/ -- The Board of Directors of FS Credit Opportunities Corp. (the Fund) (NYSE: FSCO) announced the monthly distribution for January 2026. The distribution of $0.0678 per share will be paid on January 30, 2026.

FS Credit Opportunities is downgraded to hold due to weaker earnings and declining NAV momentum amid challenging debt markets. FSCO trades at a 12.48% discount to NAV, offering a 13.2% yield, but current net investment income no longer fully covers distributions. The portfolio is 80% first lien senior secured debt, mostly floating rate, making performance sensitive to interest rate trends and borrower health.

This Is How I'm Harvesting BDC Cash Flows For My Retirement. The double-digit yields, term 'private credit,' cases like First Brands and Tricolor are just some examples that introduce a high degree of skepticism. However, if done right, BDCs can bring a lot of value to the table for safe passive income investors.

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The reason for my previous (skeptical) stance on FSCO was that I saw a clear case for FSCO's valuation converging closer to that of discounted BDC level. The thesis has worked out so far. Yet, given the Q3 details and FSCO's weak portfolio properties, I remain confident that there is still some decent downside left.

FS Credit Opportunities Corp (FSCO) presents a compelling opportunity as its discount to NAV has narrowed, making current entry points attractive. FSCO's portfolio is primarily composed of senior secured first-lien loans, offering a diversified approach to floating rates and limited exposure to riskier sectors like discretionary and software. The fund's high turnover rate and active management mean holdings frequently change, but investors must rely on FSCO's management due to limited transparency in private credit.

Many small businesses are finally hitting the “unpause” button after several weeks of uncertainty. The government shutdown ending is huge for them.

We review the CEF market valuation and performance through the third week of October and highlight recent market action. Closed-end fund NAVs rose on the week, but discounts widened, signaling investor anxiety despite strong markets. The CLO Equity CEF sector continues to struggle, with NAVs down about 20% year-to-date, driven by credit spread tightening and rate cut expectations.

PHILADELPHIA , Oct. 22, 2025 /PRNewswire/ -- FS Credit Opportunities Corp. (NYSE: FSCO) today announced that it will release its financial results for the third quarter ended September 30, 2025, on Monday, November 24, 2025, after the market close. The Company will also post an earnings presentation with financial information, which will be accessible after the market close on Monday, November 24, 2025, on the FSCO website under the Investor Relations section at: https://www.futurestandard.com/investments/fs-credit-opportunities-corp.

FS Credit Opportunities Corp. has managed recent private credit (and BDC) stress well. Even with First Brands loans in place, the market has treated FSCO well. This raises the question of whether FSCO is fairly valued.