Gary Hargreaves posted a short article on the Sandbox page relative to CLO exposure by a few companies that I follow to some degree so I am just posting the link for others that may have missed Gary’s post. The article is 6 weeks old, but still may be of interest.
The article is short and not detailed for the most part, but it does highlight some history and touches on Oxford Square (OXLQ), Prospect Capital (PSEC) and Saratoga Investment (SAR).
The bottom line is be cautious with what you own–dig a little deeper to find out who owns equity ‘tranches’ of CLOs (the riskiest tranches)–don’t chase the juicy yield some of the common shares pay, without understanding some of the risks.
Here is the article in the BDC Reporter