FS Credit Opportunities Corp.
- Open
- 4.97
- Day high
- 4.99
- Day low
- 4.88
- Prev close
- 4.93
- Volume
- 940K
- Mkt cap
- $977M
- P/E (TTM)
- 6.5
- EPS (TTM)
- $0.77
- P/B
- 0.7
- P/S
- 4.7
- Yield
- 15.68%
- Per share
- $0.78
FS Credit Opportunities Corp. (FSCO) is a Financial Services company listed on NYSE. The stock is down 32% over the past year.
FS Credit Opportunities Corp. (FSCO) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
FSCO insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Mar 16, 2026 | Bethel Keithdirector | Buy | 2,500 | $4.84 |
| Mar 2, 2026 | Forman Michael C.director, officer: See Remarks | Buy | 87 | $5.20 |
| Mar 2, 2026 | Forman Michael C.director, officer: See Remarks | Buy | 38,462 | $5.20 |
| Feb 27, 2026 | Forman Michael C.director, officer: See Remarks | Buy | 34,295 | $5.20 |
| Feb 26, 2026 | Forman Michael C.director, officer: See Remarks | Buy | 4,080 | $5.20 |
| Dec 31, 2025 | Clark Delladirector | Buy | 3,000 | $6.22 |
| Dec 3, 2025 | Fouss Barbara Jdirector | Buy | 1,620 | $6.06 |
| Jul 21, 2025 | Bethel Keithdirector | Buy | 2,500 | $7.25 |
| May 20, 2025 | Fouss Barbara Jdirector | Buy | 3,000 | $7.13 |
| Feb 14, 2025 | Bethel Keithdirector | Buy | 5,000 | $6.96 |
| Sep 23, 2024 | Clark Delladirector | Buy | 2,840 | $6.34 |
| Sep 11, 2024 | Forman Michael C.director, officer: Chief Executive Officer | Sell | 13,437 | $6.10 |
| Sep 9, 2024 | Forman Michael C.director, officer: Chief Executive Officer | Sell | 102,860 | $6.11 |
| Sep 9, 2024 | Forman Michael C.director, officer: Chief Executive Officer | Sell | 218,961 | $6.15 |
| Sep 6, 2024 | Nix Robert N.C. IIIdirector | Buy | 3,950 | $6.49 |
Source: FSCO SEC Form 4 filings, latest Mar 16, 2026. For informational purposes only — not investment advice.
See the full FSCO insider & 13F page →FS Credit Opportunities Corp. company profile
Overview
FS Credit Opportunities Corp. (NYSE:FSCO) is a closed-end investment fund that was formed on January 28, 2013, and went public on November 14, 2022. The company is managed by FS Global Advisor, LLC and GSO Capital Partners LP, operating under the broader FS Investments platform which manages approximately $76 billion in assets. FSCO focuses on investing in global credit markets, particularly in the United States and Europe, employing an event-driven investment approach to generate returns for shareholders through a diversified portfolio of debt and credit instruments.
Business
FS Credit Opportunities Corp. operates as a business development company (BDC) in the alternative credit investment space. The company invests in both public and private credit markets, focusing on debt instruments that companies use to finance their operations. The fund's core investment strategy centers around credit opportunities - essentially lending money to companies or purchasing their debt securities with the goal of earning interest income and capital appreciation. This includes several types of investments: 1. Senior Secured Debt (84% of portfolio) - These are loans that have first priority claim on a company's assets if the borrower defaults, making them relatively safer investments. The "secured" aspect means the loan is backed by specific collateral. 2. Private Credit (65% of portfolio, up from 47%) - These are loans made directly to companies outside of public markets, typically offering higher yields than publicly traded debt due to their illiquid nature and complexity. 3. Unsecured Debt (5% of portfolio) - Loans without specific collateral backing, which carry higher risk but potentially higher returns. 4. Asset-Based Finance (3% of portfolio) - Lending secured by specific assets like equipment, inventory, or receivables. 5. Equity and Other Investments (8% of portfolio) - Direct ownership stakes in companies, often acquired through debt restructurings or as part of complex transactions. The company employs an event-driven approach, meaning it seeks to invest in companies that are undervalued by the market and expected to benefit from corporate events such as mergers, acquisitions, or reorganizations. This strategy allows FSCO to potentially capture additional returns beyond traditional interest income.
Revenue model
FS Credit Opportunities Corp. generates revenue primarily through interest income from its debt investments and capital appreciation from successful credit investments. The company's business model is built around several revenue streams: 1. Interest Income - The primary revenue source comes from interest payments on loans and bonds in the portfolio. Private credit investments currently yield an average of 12.1%, while the overall portfolio generates substantial interest income that has historically covered the company's distributions to shareholders. 2. Capital Gains - The fund realizes gains when credit investments appreciate in value or when companies successfully complete corporate events like mergers or restructurings. 3. Fee Income - Occasional fees from investment structuring and advisory services, though this represents a smaller portion of total revenue. The company's customers are essentially its shareholders who invest in FSCO to gain exposure to credit markets. FSCO pays out distributions to shareholders, currently yielding approximately 10.7% based on net asset value. Several factors can significantly impact the company's profitability margins. Rising interest rates generally benefit FSCO since most of its loans are floating-rate instruments tied to benchmarks like SOFR (Secured Overnight Financing Rate). Credit spreads - the difference between what FSCO earns on loans versus what it pays to borrow - directly affect profitability, with wider spreads improving margins. Default rates in the portfolio can severely impact returns, though FSCO's focus on senior secured debt provides some protection. Market liquidity conditions affect both investment opportunities and the ability to exit positions, while competition from other credit funds can compress the yields available on new investments. The company's leverage strategy also amplifies both returns and risks, making debt costs a crucial margin factor.
Competitive moat
FS Credit Opportunities Corp. operates in a moderately competitive credit investment space with several defensive characteristics, though its moat is not particularly strong or durable. The company's primary competitive advantages stem from its scale and platform access. Operating within the broader FS Investments ecosystem, which manages $76 billion in assets, FSCO benefits from deal flow, research capabilities, and relationships that smaller independent funds cannot match. This scale provides access to larger, more complex transactions and potentially better pricing on investments. FSCO's flexible investment mandate allows it to move between public and private credit markets, providing tactical advantages during different market cycles. The fund can shift allocation based on where it finds the most attractive risk-adjusted returns, currently favoring private credit due to better yield opportunities. However, the company faces significant competitive pressures. The credit investment space includes numerous well-capitalized competitors, including large asset managers like Apollo, Blackstone, and Ares, as well as hundreds of other BDCs and credit funds. Barriers to entry are relatively low - any investment management firm with sufficient capital and regulatory approval can compete in similar strategies. The company's competitive position is further challenged by commoditization of credit analysis and the fact that many of its investment opportunities are available to other sophisticated investors. Unlike technology companies with proprietary products or consumer brands with loyalty, credit investing relies heavily on market access and execution rather than unique intellectual property. The most significant threat comes from market cycle risks - during credit crises, even well-positioned funds can face substantial losses, and FSCO's leveraged structure amplifies these risks. Additionally, regulatory changes affecting BDCs or credit markets could impact the company's operating model and competitive position.
Risks & safety
FS Credit Opportunities Corp. presents a moderate margin of safety profile with some concerning leverage characteristics but strong liquidity position. **Debt and Solvency:** - Total debt-to-equity ratio of 32%, representing moderate leverage for a credit fund - Strong liquidity position with $189 million in cash and short-term investments - No current liabilities reported, indicating good short-term liquidity management - Total assets of $2.3 billion provide substantial asset base relative to liabilities **Valuation Metrics:** - Price-to-earnings ratio of 7.2x appears reasonable for current earnings - Price-to-book ratio of 0.95x suggests trading near net asset value - Return on equity of 13.3% demonstrates solid profitability - Graham number of 12.4 compared to current price of $6.82 suggests potential undervaluation **Other Considerations:** - Non-accrual investments at 2.7% of portfolio value indicate manageable credit losses - Strong distribution coverage with net investment income historically covering payouts - Narrowed discount to NAV from 18% to 5% shows improving market confidence - Portfolio concentration in senior secured debt (84%) provides downside protection - Floating-rate nature of most investments provides some inflation protection
Recent development
Over the past few years, FS Credit Opportunities Corp. has undergone significant strategic evolution, marked by a decisive shift toward private credit markets and enhanced distribution policies. The most notable development has been the dramatic reallocation toward private credit, with this segment growing from 47% to 65% of the portfolio during 2024. This shift reflects management's view that private markets offer superior risk-adjusted returns, with new private credit investments averaging 12.1% yields compared to compressed spreads in public markets. FSCO has also demonstrated aggressive distribution growth, increasing monthly distributions by 5% in March 2024 and another 7.5% in January 2025, bringing the annualized distribution yield to 10.7% based on NAV. This distribution strategy reflects management's confidence in the portfolio's income-generating capacity and represents a key shareholder value initiative. The company has significantly improved its market positioning, with the discount to net asset value narrowing from 18% to approximately 5% during 2024. This improvement reflects both strong performance - shareholders earned 34.9% total returns in 2024 - and growing market confidence in the management team's strategy. Investment deployment has been robust, with $884 million deployed across public and private credit assets in 2024, with 70% ($618 million) directed toward higher-yielding private credit opportunities. Management has maintained disciplined underwriting standards while leveraging the broader FS Investments platform for deal sourcing and due diligence. The fund has also enhanced its risk management approach, maintaining target loan-to-value ratios between 50-60% for portfolio companies and keeping non-accrual investments at manageable levels around 2.7% of portfolio value. This conservative approach positions the company to weather potential economic downturns while maintaining flexibility to capitalize on market dislocations.
FSCO company profile · for informational purposes only — not investment advice.
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