Oxford Square Capital

OXSQ

Market cap $153M

Oxford Square Capital Corp. is a CEF regulated as a BDC, uniquely blending CLO equity and leveraged loans. OXSQ's portfolio is heavily exposed to software company loans, a sector facing margin pressures from AI-driven in-sourcing trends. The fund is highly leveraged (1.2x debt/equity), with recent performance mediocre except after major credit spread blow-ups.

In the article I list all monthly-paying BDCs. This list is then reduced to a handful of BDCs. These remaining BDCs, in my view, are the one with the strongest prospect to generate durable income without permanent NAV decay.

Oxford Square Capital is rated sell due to persistent NAV erosion, declining earnings, and an unsustainably high dividend yield. OXSQ trades at a 34.85% premium to NAV, driven by a 23.6% yield that exceeds net investment income and accelerates NAV decline. Rising debt, shrinking portfolio yield, and heavy software/CLO equity exposure amplify OXSQ's risk profile amid high-interest rates and market uncertainty.

Oxford Square Capital (NASDAQ:OXSQ) advertises a headline yield north of 21%, and the math checks out at the surface.

Oxford Square Capital Corp. (OXSQ) Q1 2026 Earnings Call Transcript

GREENWICH, Conn., April 29, 2026 (GLOBE NEWSWIRE) -- Oxford Square Capital Corp. (NasdaqGS: OXSQ) (NasdaqGS: OXSQG) (NasdaqGS: OXSQH) (the “Company,” “we,” “us” or “our”) announced today its financial results and related information for the quarter ended March 31, 2026.

GREENWICH, Conn, April 22, 2026 (GLOBE NEWSWIRE) -- Oxford Square Capital Corp. (NasdaqGS: OXSQ) (NasdaqGS: OXSQG) (NasdaqGS: OXSQH) announced today that it will hold a conference call to discuss first quarter 2026 earnings on Wednesday, April 29, 2026 at 9:00 AM Eastern time. The toll free dial-in number is 1-800-715-9871, access code number 2511724. There will be a recorded replay of the call available for 30 days after the call. If you are interested in hearing the recording, please dial 1-800-770-2030. The replay pass-code is 2511724#.

Oxford Square Capital Corp. (NASDAQ:OXSQ) advertises a yield above 22%, but the data tells a different story.

Oxford Square Capital Corp. (NASDAQ:OXSQ) offers an annualized yield of roughly 23% at a share price around $1.87.

Oxford Square Capital Corp. (NASDAQ:OXSQ) carries a yield around 22%, but that number rests on two income streams, one of which is visibly cracking.