Contradictions Unveiled: Oxford Lane Capital's Q4 2025 Earnings Call on Share Buybacks, CLO Yields, and Market Strategies

Share repurchase program, CLO yield projections, investment strategy and market attractiveness, pricing dynamics and investment strategy, and differentiation from peers and investment strategy are the key contradictions discussed in Oxford Lane Capital Corporation's latest 2025Q4 earnings call.



Net Asset Value Decline:
- Oxford Lane Capital Corp.'s net asset value per share stood at $4.32 as of March 31, 2025, compared to $4.82 in the prior quarter.
- The decline was primarily due to net unrealized depreciation on investments of approximately $187.7 million and net realized losses of $8.5 million.

Yield Decline Across CLO Equity and Debt Investments:
- The weighted average yield of Oxford Lane's CLO debt investments decreased to 15.9%, down from 16.6% as of December 31.
- The weighted average effective yield of CLO equity investments decreased to 15.9%, down from 16.1%.
- This was partly attributed to a decrease in U.S. loan prices, leading to a decline in median U.S. CLO equity net asset values.

CLO Market Activity and Investment Strategy:
- CLO new issuance for the quarter totaled approximately $49 billion, reflecting a $11 billion decline from the previous quarter.
- Oxford Lane remained active, investing over $520 million in CLO equity debt and warehouses, lengthening the weighted average reinvestment period of its CLO equity portfolio.
- The company's primary investment strategy focused on opportunistic and relative value trading to lengthen the weighted average reinvestment period, aiming to mitigate risks and maximize long-term total returns.

Share Repurchase Program:
- Oxford Lane issued approximately 60.7 million shares of common stock, raising net proceeds of approximately $300.5 million.
- The company has not disclosed any information about share repurchases under its program.