OXSQ - Earnings call transcript Q3 2021 | Oxford Square Capital Corp.

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Operator

Hello, and welcome to the Oxford Square Capital Corp.

Third Quarter of 2021 Earnings Conference Call. My name is Elliot, and I will be coordinating your call today. [Operator Instructions] I will now hand over to our host, Jonathan Cohen. Jonathan, please go ahead when you're ready.

Jonathan Cohen

much. very Thanks and everyone, the Square Oxford Good welcome Corp. Capital morning, to earnings XXXX quarter conference third call. by our Managing Saul our today joined I'm Rosenthal, Officer, Manager. Kevin Portfolio Chief President, and Yonon, and our Director Financial Rubin, Bruce Bruce, could a forward-looking statements? call disclosure regarding open you the with

Bruce Rubin

will Corp., the Today's included and any call forward-looking regarding attention the in other this of At so these law. that forward-looking this release statements projections was available performance. please that, Capital I'll and do differ update back Jonathan. this to We Jonathan. To reflect presentation in do our to to factors unauthorized of call is respect those statements the events among our for release our conference in morning. to SEC cause recorded. your Replay Square recent Oxford required you filings, form this that refer to obtain indicated www.oxfordsquarecapital not to unless information. issued that rebroadcast please of SEC in com. future from With is call projections. undertake our current copies visit at Today's latest press property that direct An to important of Sure, for could this financial by actual website views company's disclosure press our prohibited. the with Please conference customary turn the the ask is replay call XX-days. audio being strictly morning's forward-looking the be is call point, note information includes that results things, materially and filings most with We

Jonathan Cohen

Bruce. you, Thank

million income This was expense. was and CLO per Oxford offset investment to quarter. per income or interest and higher $X.XX. increase net principally value investment net at income per share September in our higher Square’s per prior For driven the income, our $X.X compares the net approximately million approximately That ended value XX, of interest in asset $X.XX $X.XX investment of $X.XX for quarter stood share, net by asset share net partially or share by $X

or compared the $X.X on approximately compared quarter. investments we $X.XX share, million to per had share the of $X.X in third in approximately share, approximately million quarter. net to realized total third approximately $X.XX net of of net prior income operations $X.XX prior million, assets $XX.X million share in investment In $X.X $X.XX or increase for prior the recorded million approximately for quarter, $X.X to realized investments $X.X $X.XX as per quarter. net of million recorded $X.X unrealized we for prior quarter, assets the investments quarter third or per of compared the net or operations we the quarter of a $X.XX total, to appreciation per million from unrealized per per For gains for a net the or on of quarter. on $X.X the we share appreciation increase a In share, million of third XXXX, from or gains In recorded compared approximately

During repayments approximately of the approximately third investment purchases of million. activity quarter, of $XX.X million, $X.X our consisted and

against of each for On October September cash Directors million. XXXX, of $X.X cash $X.XXX XXXX. purchases share we per equivalents of approximately were Board ending months February the and of million, XX, As March distributions held declared of unsettled approximately monthly and $XX.X there of of XX, January, which our

discuss to market. Kevin be our payment information date the I'll and Yonon, manager our the press turn loan was Additional that, release can details to record found morning. this that over issued regarding in With call portfolio

Kevin Yonon

you, Thank Jonathan.

X above loan by increased September quarter XX, prices XX XXXX. prices as post The on at global default that end of June rated Leveraged According prices rated the the this XX increased S&P/LSTA versus just financial S&P/LSTA of XX.XX% basis points, the principal as X.XX%. quarter Loan basis for defined the by XX.XX% Loan increased increased of quarter, quarter Leveraged XXXX, average. modestly market bond loan rated is and starting par XX, quarter of the loan June U.S. XX to XX. points. Index as basis During loan CCC rate ended XX Note, LCD, points crisis B Index ended of X.XX% increased to the the rate of trailing to basis at points the strengthened prices, from low. September XX-month BB the the par U.S. amount after during

Additionally, into the the below below years par in the a X.XX%, ratio of in percentage nearly defined as loans quarter price June of seven XX% and level a distress approximately levels lowest XXXX. at with

all September market Moreover, year-to-date XXX During bringing strong of was continued by XXX This XXX issuance billion, and primary approximately the bringing inflows approximately September approximately was quarter total total $XX.X refinancing, approximately LBO outflows quarter ended billion during during billion $XX U.S. versus XX, XXXX. as approximately primary XXXX. M&A inflows for issuance XX, year-to-date measured driven to ended billion market to activity. by were fund the of billion Lipper loan versus $X.X billion

total a strategies to strategy. a investment view to have historically take management portfolio as capital on longer-term focus to we And our towards maximize permanent long-term designed return. continue vehicle, able been We our

Jonathan Cohen

much, Oxford been open happy With the we're Kevin. know website very has quarter operator, www.oxfordsquarecapital.com. up our Thanks Square at call third posted additional for questions. performance to to that, that Capital We about any Corp. information

Operator

is Mickey, Mickey [Operator Schleien you. Ladenburg. your question comes Thank Instructions] Our from line now open. first from

Mickey Schleien

we're seen that we CLO as grown have the know, inflation markets in everyone. all rates time. Yes, dramatically good loan And not over generation. and experiencing a morning, Jonathan,

understand should on perform So, I be think it now? for assets thesis your such us inflation to would helpful how these during periods, what as is

Jonathan Cohen

different sectors you in, invested operations businesses CLO inflation throughout of throughout we for economy, in. Mickey. manifests we the have the are don't the a that structures itself answer. economy, throughout Sure, We the ways throughout single myriad are question. the that Thank invested in the of Obviously,

for as of this answering question. borrowing, for there's LIBOR CLO it within and floating they're We CLOs the But extent borrowing factors, assets of constructively on may invest I some plus, basis. it think of that pools our effect also basis. things that how that on all also the the So pools, exists And protection. underlying on operationally that equity inflationary businesses, be purpose many answer of assets and ultimately, is no know, LIBOR you single all are is inflation protection us a exposure these more would to plus I are loans plus depends element as at we our on a denominated so in, collateral expressed rate, LIBOR know, provide do the collateral these in environment. the the the adequate manifested

in invest. we that of So, specific But there think I as the most other for that we or inflationary panacea sort we in invest are have don't is inflationary aware we mind trends. sector in sectors. Certainly, of a in trends

Mickey Schleien

us at for yield that, Jonathan. I understand time wanted move in portfolio declined increased. you help cash you that effect Could that the that equity Thank to portfolio yields that dynamic? in of CLO noticed same on, your the I the

Jonathan Cohen

Mickey. Sure,

assets. meant been are portfolio, the that the than across So cash actual from returns And yield be most to yield is essentially has total to and as this that a certainly substantially we as the we're investments. you in effective effective expecting holding result capture continues know, cases, these lower receiving of these

quarter, of somewhat yield across terms this have why each portfolio, specific I don't for reasons reason positions. varies specific the effective across of trended may that. In the down Oxford have a Square’s It

Mickey Schleien

the ratio to for form conditions, under in market the current your target equity what's fund? Johnson, leverage of the debt

Jonathan Cohen

back, are equity Mickey, raise ratio standing at several having debt X.XX. months So, the of we to a a at moment capital affected debt

comfortable of availability can I think within that we consensus and and cost given general that importantly, given and of given certain operating figure, holding, we environment range the we're the moderate that duration the leverage in within the marketplace. most economic is assets obtain that range, we're in, the that the are that

Mickey Schleien

describe plans, you any, Jonathan. to Thank question, asset limit? down to if back you, reduce your ratio the statutory funds the last My non-qualified could

Jonathan Cohen

Mickey. Sure,

know, tranche essentially the repaid, deals Oxford tranche And of As et also, CLO at all Square. those of non-qualified reset, are our are within CLO strategy Square I investments is are of current know, our you strategy. part Oxford refinanced, They you as largest a part positions. is investing time. that think that roll called, assets that probably over off the cetera,

and sales we where we will opportunistic it's think continue Although, appropriate. to and affect have

Mickey Schleien

over So, off and roll you maturity, get limit. investments the to come expect to them those XX% eventually to down time, as

Jonathan Cohen

where appropriate. to we current thinking, although, again, is certainly believe opportunistic most I making not it's think sales, That our opposed we're

Mickey Schleien

you Thank morning. understand. are Those for time. this all questions my your I for

Jonathan Cohen

you very much, Mickey. Thank

Operator

to I Mr. show call now I turn the questions. Cohen. over no will further back

Jonathan Cohen

call, Alright, and much. operator, this seeing to I'd like And very for to to to thank much. you speaking you their look you listened everyone soon. forward certainly interest their we very Thanks and thank participation. who

Operator

This concludes today's call.

for disconnect and you we lines, now joining. thank may You your

Oxford Square Capital (OXSQ) 26 Oct 212021 Q3 Earnings call transcript