Core Viewpoint - FS Credit Opportunities (FSCO) is a closed-end fund that offers a diversified portfolio of credit instruments, providing significant income and capital appreciation potential despite its relatively short history since inception in November 2022 [1][2] Fund Overview - FSCO has achieved a price return of over 38% and a total return approaching 70%, supported by a high dividend yield of approximately 11.7% [1] - The fund's advisor is FS Global Advisor, with a management fee of 1.5% of average gross assets [1] Portfolio Strategy & Financials - FSCO's portfolio includes diverse credit investments across various industries, with the largest exposure in consumer services (15%), followed by healthcare equipment & services (14%) and commercial & professional services (11%) [3] - Total assets amount to $2.15 billion, spread across 82 portfolio companies, with approximately 81% structured as senior secured debt, reducing investment risk [4] - The investment portfolio has grown from $1.9 billion at the end of 2020 to $1.93 billion at the end of 2023, with net assets of $1.37 billion and a strong asset coverage ratio of 5.28x [5] Valuation & Outlook - FSCO currently trades at a discount to NAV of nearly 14%, but this discount is expected to decrease with potential interest rate cuts, which would benefit the fund's portfolio [6][7] - The NAV per share has increased from $6.56 at launch to $6.92, indicating healthy earnings generation [5][6] Interest Rate Impact - Future interest rate cuts are anticipated to create favorable conditions for FSCO's portfolio, potentially increasing the volume of borrowers and enhancing NAV growth [7][8] - FSCO holds $715 million in debt with an effective borrowing cost of 6.23%, which could decrease with lower interest rates, allowing for greater earnings retention [8] Dividend Information - The current monthly dividend is $0.06 per share, yielding 11.7%, with a coverage rate of approximately 107% based on last year's net investment income [11] - While the fund has a history of dividend increases, future raises may slow due to the impact of lower interest rates on net investment income [12] Conclusion - FSCO is well-managed with growing NAV and fully covered distributions, making it an attractive option for income-oriented investors despite the risks associated with below investment grade debt [13]

Distribution Announcement - FS Credit Opportunities Corp. announced a monthly distribution of $0.06 per share for August 2024, payable on August 30, 2024 [1][3] Financial Performance - The current annualized distribution rate is 10.1% based on the Fund's net asset value (NAV) and 11.1% based on market price as of July 31, 2024 [2] - The monthly distribution has been fully covered by the Fund's net investment income throughout 2024 [2] - The Fund has generated an estimated total return of 9.5% on NAV and 22.7% on market price year-to-date through July 31, 2024 [2] Fund Overview - FS Credit Opportunities Corp. manages approximately $2.3 billion in assets, focusing on event-driven credit, special situations, private capital solutions, and other non-traditional credit opportunities [3] - FS Investments, the parent company, manages over $75 billion in assets and serves a diverse client base including institutional investors and individual investors [6]

One of our largest positions on the taxable bond side has been with FS Credit Opportunities (NYSE:FSCO), a relatively new listed closed-end fund ("CEF") from FS Investments. Prior to November 2022, the fund was unlisted, providing only quarterly liquidity to shareholders up to 5% of shares. The conversion from a quarterly liquidity to intraday liquidity vehicle allowed investors to sell out late in 2022 when bonds were falling precipitously as rates rose and investors positioned for recession. As a listed C ...

A recent insight from Voya Investment Management suggests that rate cuts have been delayed in the second quarter of 2024 but not derailed. Many income investors like me are wondering if and how "higher for longer" rates will affect investments in credit funds that offer senior secured loans, corporate bonds, and related securities that generate high yield income. Last month, we highlighted the silver lining for bond investors in this environment: For those worried they missed out on the opportunity to alloc ...

Month Ex-Date Record Date Payable Date June June 21, 2024 June 21, 2024 June 28, 2024 The Fund pays regular monthly cash distributions to common shareholders at a level rate that may be adjusted from time to time. The amount of monthly distributions may be affected by numerous factors, including changes in portfolio and market conditions. Shareholders should not use the information provided here in preparing their tax returns. The Fund will send a Form 1099-DIV to shareholders for the calendar year that wil ...

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K Date of Report (Date of earliest event reported): April 22, 2024 FS CREDIT OPPORTUNITIES CORP. (Exact name of Registrant as specified in its charter) Maryland 811-22802 46-1882356 (State or other jurisdiction of incorporation) 201 Rouse Boulevard Philadelphia, Pennsylvania 19112 (Address of principal executive offices) (Zip Code) (Commission F ...

PHILADELPHIA, April 8, 2024 /PRNewswire/ -- The Board of Directors of FS Credit Opportunities Corp. (the Fund) (NYSE: FSCO) announced the monthly distribution for April 2024. The distribution of $0.06 per share will be paid on April 30, 2024. Further information on the distribution is summarized in the charts below. The current annualized distribution rate equates to an annualized distribution yield1 of 10.1% and 12.1%, respectively, based on the Fund's net asset value (NAV) and market price as of March 31, ...

PHILADELPHIA, March 11, 2024 /PRNewswire/ -- The Board of Directors of FS Credit Opportunities Corp. (the Fund) (NYSE: FSCO) announced today an increase to the monthly distribution for March 2024. The March distribution will be paid on March 28, 2024 at $0.06 per share, representing an increase of approximately 5.3% over the February distribution. Further information on the distribution is summarized in the charts below. "Based on FS Credit Opportunities Corp.'s continued strong performance, we are pleased ...

• When a Shareholder sells their Shares, the Shareholder may receive less than their purchase price and the then-current net asset value, or NAV, per Share. • Shares of closed-end funds frequently trade at a discount to NAV and this creates a risk of loss for investors who purchased Shares at the time of listing on the New York Stock Exchange (the "Listing"). This risk is separate and distinct from the risk that FSCO's NAV will decrease. • FSCO's distributions may be funded from unlimited amounts of offerin ...

Philip Thurston/E+ via Getty Images Back in the day, in my eternal quest for the perfect wave in my teens and 20s, the old surfer in me longed for those warm, sunny days when I could leisurely travel the world (or at least my local beaches) looking for the right setup. I always liked right-hand point breaks where I could tuck into the barrel of the wave and travel on down the line, riding from the trough to the peak and back down again, gaining speed and momentum. This analogy could be applicable to my sear ...