Why a $6 Million Credit Fund Bet Makes Sense With a 13% Yield on the Table

2 hours ago 3

Jonathan Ponciano, The Motley Fool

Sun, February 1, 2026 astatine 4:42 PM CST 4 min read

Matisse Capital initiated a caller presumption successful FS Credit Opportunities Corp. (NYSE:FSCO) during the 4th quarter, buying 897,918 shares successful a commercialized estimated astatine $5.66 million, according to a January 29 SEC filing.

According to a SEC filing dated January 29, Matisse Capital disclosed a caller presumption successful FS Credit Opportunities Corp. (NYSE:FSCO), acquiring 897,918 shares. The quarter-end worth of the involvement besides totaled $5.66 million, reflecting the combined effect of stock acquisition and terms question during the period.

This was a caller presumption for Matisse Capital, with FSCO representing 2.52% of its 13F reportable assets aft the trade..

Top holdings pursuing the filing:

NASDAQ: AAPL: $9.98 cardinal (4.46% of AUM)
NYSE: PCQ: $8.03 cardinal (3.59% of AUM)
NYSEMKT: DGRO: $7.80 cardinal (3.49% of AUM)
NASDAQ: MSFT: $6.86 cardinal (3.07% of AUM)
NASDAQ: GOOGL: $5.89 cardinal (2.63% of AUM)

As of January 28, FSCO shares were priced astatine $6.03, down 10.6% implicit the past year.

Metric

Value

Total assets	$1.20 billion
Net Income (TTM)	$188.07 million
Dividend Yield	13.1%
Price (as of 1/28/26)	$6.03

FSCO offers a diversified portfolio of planetary recognition investments, including secured and unsecured loans, bonds, and different recognition instruments.
It operates arsenic a closed-end fixed income fund, generating gross chiefly done involvement income and superior appreciation from event-driven recognition strategies.
The money focuses connected companies undergoing firm events specified arsenic mergers oregon restructurings, seeking vulnerability to planetary recognition markets.

FS Credit Opportunities Corp. is simply a closed-end money specializing successful planetary recognition investments and event-driven strategies. FS Credit Opportunities Corp. is simply a closed-end money specializing successful planetary recognition markets, with a beardown accent connected event-driven concern strategies. The institution leverages heavy recognition expertise to place undervalued opportunities crossed divers sectors and geographies. Its disciplined attack and absorption connected firm events presumption it to present charismatic risk-adjusted returns to investors seeking income and full instrumentality from recognition markets.

Income truly matters erstwhile volatility sticks around, and this determination reflects that reality. A closed-end recognition money trading astir 14% beneath its $7.09 NAV portion throwing disconnected a 13.4% organisation output offers a precise antithetic hazard illustration than the mega-cap equities that predominate overmuch of this portfolio.

FS Credit Opportunities sits astatine the intersection of income and superior preservation. As of its latest update, 86% of assets are elder secured debt, 75% are floating-rate, and mean duration is conscionable 0.6 years, limiting interest-rate sensitivity. In a marketplace wherever complaint cuts stay uncertain, floating-rate vulnerability paired with abbreviated duration gives investors income without locking successful semipermanent complaint risk.

The fund’s AUM is dispersed crossed 77 portfolio companies, with nary azygous holding dominating results. That diversification contrasts with the fund’s larger equity stakes, which are much growth- and sentiment-driven. Here, returns hinge connected currency flow, collateral, and recognition discipline.