Oxford Lane initiated with a Buy at Clear Street

Clear Street initiated coverage of Oxford Lane (OXLC) with a Buy rating and $21.50 price target Near-term headwinds persist as tight loan spreads pressure collateralized loan obligation equity yields and compress net asset values, the analyst tells investors in a research note. The firm added that, however, Oxford Lane’s scale, liquidity, and diversified positioning leave it well-positioned to benefit from a potential rebalancing of the loan market in 2026, when M&A recovery could drive wider spreads without triggering a default cycle.