Company: OXLCZ
Filing Date: 2025-05-20
Form Type: N-CSR
Source: 0001213900-25-045605
Chunk: 3

Company: Oxford Lane Capital Corp.
Filing Date: 2025-05-20
Form: N-CSR
Chunk 3
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 Portfolio Review As of March31, 2025, we held equity investments in 243 different CLO structures, and debt investments in 15 different CLO structures. For the year ended March31, 2025, net investment income, calculated in accordance with GAAP, was approximately $270.9million, or $0.80 per weighted average common share. For the year ended March31, 2025, we recorded a net increase in net assets resulting from operations of approximately $48.5million, or $0.30 per weighted average common share (inclusive of realized and unrealized gains and losses). For the year ended March31, 2025, we made additional investments of approximately $1.7billion, and received approximately $426.4million from sales and repayments of our CLO investments. Market Overview and Opportunity The broader corporate loan and CLO equity markets exhibited strength for the calendar year 2024, which was mainly driven by increased technical demand, tightening spreads, and a resilient credit environment. During that period, the Morningstar LSTA U.S. Leveraged Loan Index increased from a price of 96.23% as of December 31, 2023, to 97.33% as of December31, 2024. CLO new issuance for the year 2024 totaled approximately $202billion, and reset and refinancing activity totaled $300billion, setting respective annual volume records. The increase in U.S. loan prices led to an approximate 8 -pointincrease in median U.S. CLO equity net asset values for the year. While the momentum from 2024 continued early in Q1 2025, trade policy uncertainty led to widening spreads, meaningful loan ETF outflows, and generally volatile markets. The Morningstar LSTA U.S. Leveraged Loan Index closed the quarter at 96.31% as of March31, 2025. Despite the volatility, the 12 -monthtrailing default rate for the Loan Index was 4.3% as of March31, 2025, compared to 4.7% at the end of 2024 when including traditional defaults and out -of-courtrestructurings, exchanges, and sub -parbuybacks. With this backdrop, we continue to see compelling opportunities and remain active in both the primary and secondary markets, while remaining cautious of potential headwinds from (i) policy uncertainty, (ii) interest rate expectations, and (iii) escalating geopolitical