Oxford Square Capital: High-Yield BDC Offers Lofty Income with Significant Credit and Dividend Risks
Overview
Oxford Square Capital Corp. (OXSQ) is a BDC focused on providing capital to U.S. middle-market firms through investments in syndicated senior secured loans and CLO tranches. The company, externally managed by Oxford Square Management, seeks to deliver high risk-adjusted returns to shareholders via attractive interest income and cash distributions, with a business model that passes most income through as monthly dividends. Known for a high current yield (recently near 19%), OXSQ offers investors exposure to leveraged corporate credit—balancing high income against risks inherent in sub-investment-grade lending and CLO equity exposure.