Oxford Square's 24% Yield Looks Attractive Until You See the NAV Collapse

Oxford Square Capital (OXSQ) yields ~24% annualized at today's price. The high yield is tempered by a track record of material distribution cuts, including a 48% reduction in 2020, signaling payout sustainability risk despite the headline yield. Managers should weigh the income level against distribution history and potential credit/portfolio stress when sizing exposure.

Analysis

Oxford Square Capital (OXSQ) yields ~24% annualized at today's price. The high yield is tempered by a track record of material distribution cuts, including a 48% reduction in 2020, signaling payout sustainability risk despite the headline yield. Managers should weigh the income level against distribution history and potential credit/portfolio stress when sizing exposure.