Oxford Square Capital Corp. 5.50% Notes due 2028 (OXSQG) fair value

ACCE thesis

Oxford Square Capital Corp. (OXSQG) is the 5.50% notes due 2028 issued by a closed-end investment company that lends to lower middle-market companies, so the instrument is a fixed-coupon debt claim on a BDC portfolio rather than an equity stake. The notes are structurally senior to the fund's common equity, which is the main reason to look at them, but that protection depends on the health of a loan book that the reported data does not let us check. The data we have is thin: the score is 39/100, there are no earnings multiples or margins to anchor a view, and the reported 50.6% ROE reflects the fund's leverage and the way BDCs report income rather than operating strength. The name is not in any index, which limits forced buying or selling as a support or a drag. A deeper look would need the portfolio's non-accrual rate, the notes' yield to maturity against the current coupon, and the fund's asset coverage ratio relative to the regulatory minimum.