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โ Due DiligenceRisks
1. Interest Rate Risk: Oxford Lane Capital Corp. is exposed to interest rate risk due to its investments relating to leveraged loans, which are subject to changes in the prevailing interest rate environment.
2. Credit Risk: Oxford Lane Capital Corp. is exposed to the credit risk of its investments. Its portfolio of investments may be affected by the economic conditions of the borrowers, which can significantly affect the performance of its assets.
3. Liquidity Risk: Oxford Lane Capital Corp. is also exposed to liquidity risk. The fund may need to liquidate a portion of its investments in order to meet redemption requests from its investors, potentially reducing the value of its investments.
4. Regulatory Risk: Oxford Lane Capital Corp. is subject to the laws and regulations of the countries in which it operates. Changes to laws and regulations in these countries could adversely affect the companyโs operations, profitability, and reputation.
5. Market Risk: Oxford Lane Capital Corp. is also exposed to market risk, as changes in the global economy and financial markets can affect the performance of its investments.