OXSQ - Earnings call transcript Q2 2022 | Oxford Square Capital Corp.

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Operator

Hello and welcome to today's Oxford Square Capital Corp.

Second Quarter 2022 Earnings Conference Call. My name is Drew and I'll be coordinating your call today. [Operator Instructions] I'm now going to hand over to Jonathan Cohen to begin. Please go ahead.

Jonathan Cohen

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

Bruce Rubin

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

Jonathan Cohen

Thanks, Bruce.

million approximately was share, prior which unchanged $X.XX Square's For net the Oxford per June quarter investment or income quarter. from was ended $X.X XX.

of at for asset $X.XX net as share prior net a compared share asset the quarter. value per stood to $X.XX per Our value

investments net unrealized $X.X the of depreciation was For quarter, we a the investment million, net In of share, recorded investments quarter. quarter, per of realized $XX.X $X.XX the recorded second for of million quarter. per to million depreciation approximately prior or per $X approximately the $X.XX we $XX.X recorded compared realized on prior second prior income $X.XX total on or share or million unrealized of million gains share from for to approximately quarter. approximately or on investments which quarter, compared the second unchanged In $X.X we losses per the share, $X.XX

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

approximately million As December our and we share $XX.X of June XX, and ending months XX, monthly of XXXX. distributions of on Board of of July held Directors for November equivalents of declared October, per cash cash the each $X.XXX

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

Kevin Yonon

Jonathan. you, Thank

March XX. at points, or BB-rated the default of related XX-month loan CCC-rated During to XX, Loan X.XX% XXXX, basis of prices The XXXX. decreasing average. XX.XX% trailing of principal and X.XX% pricing amount loan XX loan decreasing from the at quarter basis prices for quarter of LCD, defined of S&P/LSTA as Loan to Leveraged increased S&P/LSTA to XXX prices points, or X.XX% March points XXX X.XX% XX, the end June XXXX. March during loan the rate weakness with basis the or X.XX% B-rated According decreasing by on Index end Index by loan XXX prices was ended versus market par there of the as the ended exhibited Leveraged par to from the credit quarter decreased U.S. XX.XX% dispersion quarter, the June quality as U.S.

at quarter compared price below as end distress the a to XXXX. defined at percentage X.XX% of the Additionally, ended of the loans X.XX% with approximately of ratio particular, the XX% March

decline XXXX quarter outflows quarter billion and XX, ended was primary This LBO time, approximately $X.X XX% loan a the representing the for $XX measured refinancing, by same U.S. June were activity. ended issuance the quarter At as was by June ended June fund M&A the driven versus Lipper market lower billion During XX, XXXX. approximately XX.

to continue total our strategies focus We portfolio management maximize on designed return. long-term to

we strategy. a take able a towards As investment historically to permanent vehicle, our term view capital been longer have

Jonathan Cohen

much, very Kevin. Thanks

our Additional information for that about call has open second we're operator, happy with website at Oxford And to performance been www.oxfordsquarecapital.com. the any Square's quarter posted to questions.

Operator

Mickey Thank you. Schleien from [Operator comes question Ladenberg. from Our Instructions] first

Mickey. now open, Your line is

Mickey Schleien

Can Jonathan? everyone. morning, me, you Good hear

Jonathan Cohen

Mickey. good morning, Yes,

Mickey Schleien

CLOs you're could as some obligor's margins Jonathan and your terms the this revenues year? their collateral of in far us and in you so seeing idea terms Hi, trends give to borrowers of in the what

Jonathan Cohen

I'm in? we chime Sure. Deep may invest seeing what Kevin about we're the bit in. that CLO hand to Mickey collateral over a also to can and pools talk going various the call - about structures who little the within

Debdeep Maji

so - speaking, Thanks, we've seen poor That generally weaker said, has year. have stable. would there that, some been for I Mickey. guidance say Yes, earnings, this being borrowers I been think earnings later

been that what expectation I to of of earnings come second bit they're now. Kevin? were starting going expected. the But generally the we into was little be earnings ahead we're quarter bit weaker a they've that that starting out to think a actually speaking, little - kind

Kevin Yonon

due loan portfolio, portfolio, in next month our specifically so. - we are results corporate or that haven't our yet received QX in for the those And results

earnings generally well in through you are generally were as margins and when holding you as at people management flat, that results, by However, there. the commentary provided certain QX were know, as teams, revenues, saying, look QX, are

regarding margin. heard disruptions which the chain across inflation future we've and wages, on sort impacts supply has been the impact commentary, potential, know there market, of you However, and just on

point. that's So at I think we where this are

Mickey Schleien

you and down for as when loan economy Fed the that. Thank markets CLO potential next with consider know for to the more? for of that balance year for tightens slow we your what's inflation the mind, this even outlook into you the of And going the level in and year, the

Jonathan Cohen

about we of downgrades, loan already Sure, of real stated metrics published market is the CLO economic rates, issue relative and other tranche prices, latter par. or circa points and context of any the don't some lesser Mickey this we about low XXX and for haven't going loan a a we focus a market perspective XX. - And the The year. the at at basis of The or dislocation of to discounted the into rallied has off The or having that that its think loan today, target on is of potential from in have front, or recent default extent, variables. our clearly the loan view. is what XXX on to direct trading of investing investing. equity these to discount greater these CCC some variables specific sufficiency don't question that discount part discount

Mickey Schleien

you your of in is Jonathan, an do see relative portfolio, allocation portfolio's or extent? loan you in CLO more what equity, the that the market and given terms said to affecting attractiveness in just

Jonathan Cohen

parts market liquid The Mickey say At ways, opportunity. the that have shown market, generally names to interesting is less liquid, syndicated also price different lack answer liquidity broadly the CLO same corporate think, through of loan than some some corporate time, I speaking loan the lead occasionally can of movements. less both the is syndicated of larger in certainly. would I although The

and continuing short invest both. monitoring So is we're answer the Mickey we're to in both that

Operator

you. Thank

Steven next line Our [Financial is Writer]. question comes now Steven, from Bavaria from open. your

Unidentified Analyst

and back prices that you're actually a So do I of it? hear turbulent and CLOs investors we times. the your by in I during more secondary I in of what next. folks, how do from wanted more market this a you all I perhaps often able times they know own than know Oh loan on particular? one is to the even is than it, portfolio, as justified lot at go give benefit little loans than even loans them a how your down investor, about when probably that bit And more investors. the hi, of sell down, you it's performing, mean, a that. in the I'm do now can view Jonathan. were thoughts you right. you new though better - retail the nuanced that, or professional your can you explain when quarter normal and and be see to at loan a seen are But are secondary marked bit mean, a to are can when market jerk more that XX% your still them perhaps NAV market of take you you ask for cheaper little negative if at is you'll secondary or into bit the Can to knee often drop I collect if prices getting buy on give kind me

Jonathan Cohen

very Sure, Steve, thank much you the for question.

very great economic and a I deal times neatly around the CLO think price encapsulates of question of loans, in across broadly. corporate in volatility investing loan syndicated dislocation tranches and market the the philosophy

agreement in extent a we said, with that, just you've don't increase what fundamental that defaults. So is yes, loan in the dramatic we're which see to corporate

enormously pull We which certainly can investment dual seeing the to context some have par, powerful accretive strategies. on our be of the prospect in

low has expect default corporate is expect we're in you we hope the We're par, time, our just the while from some been par. same significant across loans of as and at majority even At don't not will every our saying we that our rate. loan and to benefit a repay inevitably, So very, that expectant repay to are historically not dynamic, that loan what very we portfolio at say. syndicated saying that increase expectation

Unidentified Analyst

Thank to you. hear. Good

Jonathan Cohen

very Thank Steve much. you,

Operator

I Cohen you concludes for Jonathan That remarks. session. you. further to refer Thank will back now Q&A today's

Jonathan Cohen

look We'd for operator. speaking Square call you. who's Capital who's interest Thank Thank like the listening you very their in thank this to or Corp. to forward replay you to We again. everyone in to much, participated Oxford

Operator

participation. Capital concludes call. quarter Thank second for earnings XXXX Oxford your Corp. That Square the you

You all may now disconnect.

Oxford Square Capital (OXSQ) 26 Jul 222022 Q2 Earnings call transcript