FS Credit Opportunities Corp. (FSCO)

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The reason for my previous (skeptical) stance on FSCO was that I saw a clear case for FSCO's valuation converging closer to that of discounted BDC level. The thesis has worked out so far. Yet, given the Q3 details and FSCO's weak portfolio properties, I remain confident that there is still some decent downside left.

FS Credit Opportunities Corp (FSCO) presents a compelling opportunity as its discount to NAV has narrowed, making current entry points attractive. FSCO's portfolio is primarily composed of senior secured first-lien loans, offering a diversified approach to floating rates and limited exposure to riskier sectors like discretionary and software. The fund's high turnover rate and active management mean holdings frequently change, but investors must rely on FSCO's management due to limited transparency in private credit.

Many small businesses are finally hitting the “unpause” button after several weeks of uncertainty. The government shutdown ending is huge for them.

We review the CEF market valuation and performance through the third week of October and highlight recent market action. Closed-end fund NAVs rose on the week, but discounts widened, signaling investor anxiety despite strong markets. The CLO Equity CEF sector continues to struggle, with NAVs down about 20% year-to-date, driven by credit spread tightening and rate cut expectations.

PHILADELPHIA , Oct. 22, 2025 /PRNewswire/ -- FS Credit Opportunities Corp. (NYSE: FSCO) today announced that it will release its financial results for the third quarter ended September 30, 2025, on Monday, November 24, 2025, after the market close. The Company will also post an earnings presentation with financial information, which will be accessible after the market close on Monday, November 24, 2025, on the FSCO website under the Investor Relations section at: https://www.futurestandard.com/investments/fs-credit-opportunities-corp.

FS Credit Opportunities Corp. has managed recent private credit (and BDC) stress well. Even with First Brands loans in place, the market has treated FSCO well. This raises the question of whether FSCO is fairly valued.

The manic market just dumped business development companies (BDCs), again. These three dividend stocks paying up to 11.7% are poised to bounce back when sanity returns.

PHILADELPHIA , Oct. 8, 2025 /PRNewswire/ -- The Board of Directors of FS Credit Opportunities Corp. (the Fund) (NYSE: FSCO) announced the monthly distribution for each of October, November and December 2025. The distribution of $0.0678 per share will be paid on October 31, November 28, and December 31, 2025.

FS Credit Opportunities Corp., Inc. (FSCO) Q4 2023 Earnings Call Transcript

Last Friday's jobs report confirmed what we contrarians have been discussing for months now—thanks to AI, employers no longer need to hire more employees to grow.

PHILADELPHIA , Sept. 8, 2025 /PRNewswire/ -- The Board of Directors of FS Credit Opportunities Corp. (the Fund) (NYSE: FSCO) announced the monthly distribution for September 2025.

FSCO delivers strong total returns with a 33.1% one-year total return and a 10.8% yield, making it attractive for income-focused investors. The fund's defensive portfolio—primarily senior secured loans and floating-rate assets—supports both capital appreciation and income stability, even in volatile markets. Despite trading at a premium to NAV, FSCO's consistent performance and dividend coverage justify its valuation, with potential for further premium growth if performance persists.

PHILADELPHIA , Aug. 7, 2025 /PRNewswire/ -- The Board of Directors of FS Credit Opportunities Corp. (the Fund) (NYSE: FSCO) announced the monthly distribution for August 2025. The distribution of $0.0678 per share will be paid on August 29, 2025.

PHILADELPHIA , Aug. 6, 2025 /PRNewswire/ -- FS Credit Opportunities Corp. (NYSE: FSCO) today announced that it will release its financial results for the second quarter ended June 30, 2025, on Monday, August 25, 2025, after the market close. The Company will also post an earnings presentation with financial information, which will be accessible after the market close on Monday, August 25, 2025, on the FSCO website under the Investor Relations section at:  https://www.futurestandard.com/investments/fs-credit-opportunities-corp.

FS Credit Opportunities Fund targets high and stable income, focusing on private credit investments similar to business development companies (BDCs). FSCO's 11.3% distribution yield is competitive with BDCs, making it appealing for income-focused investors seeking credit-driven exposure. FSCO offers key advantages, but the main differences to BDCs should not be ignored.