Oxford Square Capital Corp. Investor Presentation Quarter Ended December 31, 2025 Disclaimer "Company"). This presentation is neither an offer to sell, nor a solicitation of an offer to purchase, any securities of Oxford Square Capital Corp. ("OXSQ" or the This presentation and the summaries contained herein do not purport to be complete and no obligation to update or otherwise revise such information is being assumed. Nothing shall be relied upon as a promise or representation as to the future performance ...

Financial Data and Key Metrics Changes - In 2025, the company generated a GAAP return on equity of -0.7% and a total return on common stock of -15.2%, with cash distributions of $1.98 per share, representing 15% of the average stock price during the year [5][8] - The fourth quarter net investment income was $0.35 per share, down from $0.39 per share in the prior quarter, primarily due to declining SOFR and tightening loan spreads [7][8] - The company's NAV decreased to $13.31 per share as of December 31, down from $14.21 per share at the end of September [8][20] Business Line Data and Key Metrics Changes - The company experienced $147 million in paydowns within its CLO Debt portfolio during 2025, with realized capital gains of $0.12 per share from early repayments [5][6] - The fourth quarter net investment income, less realized losses, was $0.03 per share, compared to $0.26 per share in the prior quarter [18] - The company deployed approximately $45 million into new investments during the fourth quarter, with $26 million allocated to other credit asset classes [9] Market Data and Key Metrics Changes - The S&P UBS Leveraged Loan Index posted a 1.2% return for the fourth quarter and a 5.9% return for 2025, with the trailing 12-month default rate decreasing from 1.5% to 1.2% [14][15] - CLO new issuance rose to $55 billion in the fourth quarter, totaling $209 billion for 2025, surpassing the previous year's record [15] - The company's portfolio's default exposure was 32 basis points as of December 31 [14] Company Strategy and Development Direction - The company aims to actively manage its portfolio and seek opportunities across CLO Debt, CLO Equity, and other asset classes beyond CLOs [4][12] - The management believes that the current market environment presents a compelling opportunity for well-capitalized investors, with a focus on relative value and disciplined capital allocation [22] - The company plans to continue its share repurchase program, viewing its stock as undervalued [11][22] Management's Comments on Operating Environment and Future Outlook - Management noted that the CLO market faced challenging conditions in 2025, with factors such as reduced SOFR levels and loan spread compression impacting performance [4][5] - Looking ahead, management expressed confidence in healthy underlying borrower fundamentals and a disciplined approach to position the company well for future opportunities [5][22] - The company anticipates that increased new issue loan activity may help rebalance supply and demand in the loan market, potentially supporting CLO Equity [22] Other Important Information - The company completed the full redemption of its 7.75% Series B Term Preferred Stock and announced plans to redeem the 8% Series C Term Preferred Stock [10] - As of January month-end, the company had $85 million of cash and revolver capacity available for investment [20] Q&A Session Summary Question: Follow-up on realized losses due to underperforming managers - Management indicated that underperforming collateral managers faced credit issues and loan spread compression, leading to a rotation into better-performing CLOs and other asset classes [25][26] Question: Source of funds for redeeming Series C Term Preferred Stock - Management confirmed that the redemption would be funded through a combination of the new revolver and cash on hand, along with proceeds from CLO Debt repayments [27][28] Question: Expected changes in the balance sheet investment portfolio - Management stated that while redeeming EICCs may lower leverage, they expect the investment portfolio to remain stable in the near term [34] Question: Focus on alternative credit assets - Management clarified that investments in alternative credit assets are made across the Eagle Point platform, with dedicated teams managing these investments [36][37]

Financial Data and Key Metrics Changes - The company generated a GAAP return on common equity of negative 14.6% during 2025, which is slightly better than the market-wide assessment by Nomura Research, which estimated a median CLO equity return of negative 15% for the same period [6][17] - As of December 31, the company's NAV was $5.70 per share, down from $7.00 per share on September 30 [7] - The fourth quarter of 2025 saw a net investment income (NII) less realized losses of -$0.26 per share, compared to -$0.16 per share in the third quarter [16] Business Line Data and Key Metrics Changes - The company completed 10 resets and 3 refinancings of its CLOs in the fourth quarter, totaling 34 resets and 27 refinancings for the entire year [8] - Recurring cash flows from the portfolio increased to $80 million, or $0.61 per share, up from $77 million or $0.59 per share in the prior quarter [7] - The non-CLO portion of the portfolio was approximately 26% of the total investment portfolio at year-end [9] Market Data and Key Metrics Changes - The trailing twelve-month default rate decreased from 1.5% in September to 1.2% as of December 31, which is below the long-term average of 2.6% [22] - The S&P UBS Leveraged Loan Index posted a 1.2% return for the fourth quarter and a 5.9% return for the full year 2025 [21] - CLO new issuance volumes rose slightly to $55 billion in the fourth quarter, bringing the total to $209 billion for all of 2025, surpassing the previous year's record [22] Company Strategy and Development Direction - The company is focusing on increasing exposure to credit assets beyond CLO Equity, reflecting a strategic shift to maximize total return for shareholders [10] - The company plans to retain more capital for investments with attractive risk-adjusted returns, aiming for a stable or growing NAV over time [15] - A new joint venture was launched to invest in regulatory capital relief transactions, indicating a diversification strategy [12] Management's Comments on Operating Environment and Future Outlook - Management noted that while defaults remain below long-term averages, spread compression in the loan market and negative sentiment towards credit impacted financial performance [4] - The company anticipates continued spread compression and a similar credit environment to 2025, with no significant uptick in credit expenses expected [41][45] - Management expressed optimism about a robust pipeline of refinancings and resets of CLOs in the portfolio, indicating potential for future growth [24] Other Important Information - The company announced a $100 million common stock repurchase program to buy stock in the open market if it trades at a material discount to NAV [14] - The company redeemed its 8% Series F Term Preferred Stock, which was its highest cost of financing, and proactively repurchased $9 million of other securities at discounts [12][13] Q&A Session Summary Question: Impact of captive CLO equity funds on fee structures - Management acknowledged that CLOs without internal management fees could outperform those with fees, but noted that spread compression affects all funds [30][32] Question: Outlook for resets and refinances in 2026 - Management indicated that predicting the exact number of resets and refinances is challenging, but they have a robust calendar of investments planned [61] Question: Stock repurchase program and NAV stability - Management stated that the decision to use the repurchase program will depend on various factors, including share price and investment opportunities [50][52] Question: Trends in credit quality and expenses - Management expects credit quality trends to mirror those of the previous year, with no significant changes anticipated [45][46]

Financial Data and Key Metrics Changes - The company generated a GAAP return on common equity of negative 14.6% during 2025, which is slightly better than the market-wide assessment by Nomura Research, which estimated a median CLO equity return of negative 15% for the same year [5][6] - As of December 31, the company's NAV was $5.70 per share, down from $7.00 per share on September 30 [6] - The fourth quarter of 2025 saw a net investment income (NII) less realized losses of -$0.26 per share, compared to -$0.16 per share in the third quarter [6][17] - The company recorded a GAAP net loss attributable to common stock of $110 million, or $0.84 per share for the fourth quarter, compared to a GAAP net income of $0.12 per share in the prior quarter [18] Business Line Data and Key Metrics Changes - The company completed 10 resets and 3 refinancings of its CLOs in the fourth quarter alone, and participated in 34 resets and 27 refinancings throughout 2025 [8][9] - Recurring cash flows from the portfolio increased to $80 million, or $0.61 per share, up from $77 million or $0.59 per share in the prior quarter [6] - The non-CLO portion of the investment portfolio was approximately 26% at year-end, reflecting a strategic shift towards credit assets beyond CLO equity [9][10] Market Data and Key Metrics Changes - The S&P UBS Leveraged Loan Index posted a 1.2% return for the fourth quarter and a 5.9% return for the full year 2025 [21] - Total loan repayments reached $294 billion, or approximately 19% of the market in 2025, resulting in a twelve-month trailing prepayment rate of 21% [21] - The trailing twelve-month default rate decreased from 1.5% in September to 1.2% as of December 31, remaining below the long-term average of 2.6% [22] Company Strategy and Development Direction - The company is focusing on increasing exposure to credit assets beyond CLO equity, with a strategic initiative to maximize total return for shareholders [10][11] - A new joint venture was launched to invest in regulatory capital relief transactions, indicating a diversification strategy [12] - The company plans to retain more capital for investments with attractive risk-adjusted returns, aiming for a stable or growing NAV over time [16] Management's Comments on Operating Environment and Future Outlook - Management noted that while defaults remain below long-term averages, spread compression in the loan market and negative sentiment towards credit have impacted financial performance [4] - The company anticipates attractive opportunities for capital deployment in both CLO equity and other credit asset classes in 2026 [16] - Management expressed a cautious outlook on credit quality, expecting trends to mirror those of 2025, with continued spread compression [46] Other Important Information - The company announced a $100 million common stock repurchase program to buy stock in the open market if it trades at a material discount to NAV [15] - The company redeemed its 8% Series F Term Preferred Stock, which was its highest cost of financing, and proactively repurchased $9 million of other securities at discounts [12][13] Q&A Session Summary Question: Impact of captive CLO equity funds on fee structures - Management acknowledged that CLOs without internal management fees could outperform those with fees, but noted that spread compression affects all funds [30][32] Question: Outlook for resets and refinances in 2026 - Management indicated that predicting the exact number of resets and refinances is challenging, but they have a robust calendar of investments planned [63][64] Question: Dividend policy and potential for supplemental distributions - Management stated that while the new dividend policy is conservative, there is potential for supplemental distributions in the future if conditions allow [84]

Financial Performance - Net investment income per share was $008 in Q2 2025, compared to $013 in Q2 2024[7] - Distributions declared and paid were $0105 per share for each quarter from Q2 2024 to Q2 2025[7] - Net asset value was $206 per share at the end of Q2 2025, a decrease from $243 in Q2 2024[7] - Total fair value of investments was $2415 million in Q2 2025, down from $2521 million in Q2 2024[7] - Net assets were $1574 million in Q2 2025, compared to $1524 million in Q2 2024[7] Portfolio Composition and Activity - New investments were $0 million in Q2 2025, a significant decrease from $288 million in Q2 2024[9] - The portfolio consisted of 50% first-lien secured debt, 11% second-lien secured debt, 37% CLO equity, and 2% other investments as of Q2 2025[9] - The weighted average yield of total investments at current cost was 116% in Q2 2025, compared to 118% in Q2 2024[9] - 608% of the company's investments are in senior secured debt[22] Debt and Non-Accrual Status - Principal amount of debt outstanding was $1153 million in Q2 2025[7] - Total non-accrual investments at fair value were $50 million in Q2 2025[28]

Performance Overview - In May 2025, Volta Finance's net performance increased by +3.3%, bringing the cumulative performance from August 2024 to +10.7% [4][5] - The positive macroeconomic environment contributed to the recovery of investments in CLO Debt and CLO Equity, which had previously experienced volatility [4][5] Macroeconomic Context - The macroeconomic environment improved, with a 90-day tariff rollback from the U.S. towards China, leading to a sharp rise in both European and U.S. equity markets [5] - U.S. inflation rates decreased to 2.3% year-on-year, while euro-area inflation remained stable at 2.2% [6] - The U.S. Q1 GDP contracted by an annualized 0.3% due to pre-tariff stockpiling, while the Eurozone experienced a growth of +0.3% quarter-on-quarter [6] Credit Market Performance - Credit markets showed strong performance in May, with the European High Yield index tightening by around 50bps and closing at 300bps [7] - U.S. BBs returned +3% for the month, while U.S. High Yield returned +1.7% and Euro High Yield decreased by +1.3% [7] Loan Fundamentals - Default rates in the U.S. remained steady at 4.4%, but there was an increase in downgrades, with 12% of B- exposures downgraded to CCC by S&P [8] Cash Position and Investments - Volta Finance maintained a cash position of approximately 10% of its NAV at the end of May, having deployed €10.7 million into CLO debt tranches and two warehouses [9] - The cash flow generation remained stable at €28.1 million over the last six months, representing close to 21% of May's NAV on an annualized basis [9] Asset Class Performance - CLO Equity tranches returned +5.9% while CLO Debt tranches returned +2.8% during May [10] - The dollar reached a six-week low against the Euro at $1.15, with minimal impact on long dollar exposure [10] NAV and Share Information - As of the end of May 2025, Volta's NAV was €271.8 million, equating to €7.43 per share [11]

Group 1 - The article reviews Eagle Point Income Co (NYSE: EIC), a fund primarily investing in CLO Debt with a minor allocation in CLO Equity [1] - The fund has experienced a decline due to a recent cut in its distribution [1]

Performance Overview - Volta Finance's net performance for April 2025 was negative at -2.4%, bringing the performance from August 2024 to date to +7.1% [4] - The volatility in investments, particularly in CLO Debt and CLO Equity, was noted post-liberation day, affecting the valuation of underlying assets [4] Market Conditions - April 2025 was characterized by high market volatility due to macroeconomic and geopolitical events, including aggressive tariff policies announced by President Trump [5] - The U.S. stock indices experienced sharp declines, although there was a partial recovery by the end of the month following a 90-day tariff pause for non-retaliating countries [6] - The U.S. jobs report showed resilience with 177,000 jobs added, while GDP contracted by -0.3% in Q1 2025, leading to increased recession risks [6] CLO Market Activity - The European High Yield index widened by approximately 40 basis points, while Euro Loans lost 1 point, closing at 97.80px [7] - CLO BB tranches reported total returns of -1.5%, with the U.S. High Yield returning -1.07% and Euro High Yield at -1% during the same period [7] - The default rate in the U.S. stood at approximately 4.3%, while Europe maintained a low default rate of 0.3% [8] Portfolio Management - The company increased cash holdings to approximately 16% of NAV by the end of April through active management, receiving €7.5 million from called CLO Equities [9] - Cash flow generation remained stable at €28.5 million over the last six months, representing close to 22% of April's NAV on an annualized basis [10] - As of the end of April 2025, Volta's NAV was €262.9 million, equating to €7.19 per share [12] Investment Performance - CLO Equity tranches returned -3.6%, while CLO Debt tranches returned -0.9%, indicating a consistent performance relative to the overall product returns [11] - The dollar's volatility negatively impacted the fund's performance by -0.64%, prompting a reduction in USD exposure to approximately 12% [12]

Financial Performance - Net investment income per share was $009 in Q1 2025, consistent with Q4 2024[7] - Distributions declared and paid remained steady at $0105 per share across all quarters presented[7] - Net asset value decreased to $209 per share in Q1 2025 from $230 in Q4 2024[7] - The company experienced a net decrease in net assets resulting from operations of $(012) per share in Q1 2025[7] Portfolio Composition and Activity - Total fair value of investments was $2432 million in Q1 2025, down from $2609 million in Q4 2024[7] - The number of portfolio investments decreased to 58 in Q1 2025 from 62 in Q4 2024[7] - New investments totaled $160 million in Q1 2025, while sales and repayments amounted to $195 million, resulting in net investment activity of $(34) million[9] - First-lien secured debt constituted 49% of total investments in Q1 2025, while CLO equity represented 38%[9] Debt and Leverage - Principal amount of debt outstanding remained constant at $1253 million across all quarters presented[7] - Debt to equity ratio was 084x in Q1 2025, compared to 078x in Q4 2024[7] Non-Accrual Investments - Total non-accrual investments at current cost were $161 million in Q1 2025, a decrease from $185 million in Q4 2024[27]