Oxford Lane Capital Q2 FY25 Preview: Expecting Vibrant Deal Activity (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• 2025 faces 2 key macro scenarios. Real-time inflation data and industry forecasts suggest that the contained inflation, growth-constructive one is more likely.
• In such an environment, OXLC is poised to benefit from higher deal activity in the US CLO market, which would be accretive to subsequent net investment income growth.
• OXLC's valuations are at a lower than usual premium to NAV, making buys more acceptable for CLO investors.
• OXLC may fare mediocre vs the S&P 500, but it looks poised to outperform the broader CLO market, as represented by the JAAA CLO ETF.
• Going into Q2 FY25 earnings, I am expecting good prints and commentary on net new investment activity and hopefully management's take on potential deregulation policies and its impacts on spurring growth in the investments book of OXLC.

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