FS Credit Opportunities (FSCO)

The fund invests across both secured and unsecured debt, including floating-rate and fixed-rate instruments. This gives it flexibility to position for different interest-rate and credit-market conditions, although the below-investment-grade focus means the portfolio carries elevated credit risk compared with traditional high-quality bond funds. FSCO’s strategy is designed for investors seeking exposure to private and opportunistic credit rather than a conventional core fixed-income allocation.

A defining feature of FSCO is its emphasis on situations where credit selection and structuring may matter more than broad market exposure. The fund can allocate to opportunistic credit, special situations, and capital-structure solutions, which may include lending or investing in parts of a company’s debt stack where managers believe risk-adjusted returns are attractive. As a closed-end fund, its shares trade on an exchange and can move at a premium or discount to net asset value. For investors, FSCO represents a vehicle for accessing higher-yielding corporate credit strategies within a listed fund structure.