OFS Credit (OCCI)

CLOs are investment vehicles that hold portfolios of corporate loans, typically senior secured loans made to below-investment-grade borrowers. The cash flows from those loan portfolios are distributed through different layers of securities, each with its own risk and return profile. OFS Credit’s strategy includes exposure to floating-rate credit instruments, CLO equity, CLO debt and other structured credit investments. It may also invest in more traditional corporate credit assets such as leveraged loans and high-yield bonds, as well as opportunistic credit situations involving stressed, distressed or long/short credit strategies.

As a closed-end fund, OFS Credit has a fixed pool of publicly traded shares rather than continuously issuing and redeeming shares like an open-ended mutual fund. Its market price can trade above or below the value of its underlying portfolio, depending on investor demand, credit conditions and expectations for income distributions.

For investors, OCCI offers a specialized route into CLO and leveraged credit exposure. The shares are tied to the performance of corporate credit markets, loan default trends, interest rates, financing costs and the manager’s ability to select and manage structured credit assets.