Group 1 - The article emphasizes that it is a favorable time for income investors despite recent market rallies, as some stocks have been significantly undervalued and may take time to recover to previous valuations [2] - The focus is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] Group 2 - The service mentioned is iREIT+HOYA Capital, which specializes in income-focused investing and offers a free two-week trial for potential investors [1]

Investors in Crescent Capital BDC, Inc. (CCAP) need to pay close attention to the stock based on moves in the options market lately. That is because the Sept 19, 2025 $10.00 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It ...

Core Insights - The article discusses the author's transition from a career in publishing to finance, emphasizing the importance of building an income portfolio using ETFs and CEFs [1]. Group 1 - The author graduated in Languages in 1988 and worked as an editor for 25 years before shifting focus to finance in 2005 [1]. - After losing a job in 2013, the author dedicated efforts to creating an income portfolio, highlighting the use of ETFs and CEFs as investment vehicles [1].

Group 1 - The article discusses two Business Development Companies (BDCs) and their deviation from prudent investment strategies prior to the Q2 2025 earnings season [1] - Roberts Berzins has over a decade of experience in financial management, focusing on corporate financial strategies and large-scale financings [1] - Berzins has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [1] Group 2 - The article highlights Berzins' involvement in developing national SOE financing guidelines and frameworks for private capital in affordable housing [1] - Berzins holds a CFA Charter and an ESG investing certificate, and has experience with the Chicago Board of Trade [1] - The article emphasizes Berzins' active participation in thought-leadership activities to support the development of capital markets in the Baltic region [1]

Financial Data and Key Metrics Changes - The company reported net investment income (NII) of $0.46 per share for Q2 2025, an increase from $0.45 per share in Q1 2025. Excluding one-time accelerated amortization, NII was $0.48 per share [5][21] - NAV per share decreased by approximately 0.4% to $19.55, down from $19.62 at the end of Q1 2025, primarily due to a special dividend of $0.05 per share paid during the quarter [6][22] - The company maintained a 110% base dividend coverage for the quarter [6] Business Line Data and Key Metrics Changes - The investment portfolio totaled over $1.6 billion at fair value, consisting of 187 companies with an average investment size of approximately 0.6% of the total portfolio [9] - First lien loans represented 91% of the portfolio at fair value, indicating a strong focus on senior secured debt [11] Market Data and Key Metrics Changes - Deal activity remained constrained in Q2 2025 due to ongoing tariff discussions and regulatory uncertainty, impacting M&A volume [6] - The weighted average yield of income-producing securities remained stable at 10.4% [18] Company Strategy and Development Direction - The company focuses on disciplined credit underwriting, capital preservation, and strong free cash flow generation, particularly in the lower middle market [26] - A $20 million stock repurchase program was approved to opportunistically repurchase shares, reflecting confidence in the company's valuation [15] Management's Comments on Operating Environment and Future Outlook - Management expressed that the current discount to NAV is unwarranted and highlighted the company's long-term performance track record, which has outperformed public BDC averages [14][15] - The company remains optimistic about its ability to navigate market volatility and maintain a stable NAV profile [26] Other Important Information - The company declared a regular dividend of $0.42 per share for Q3 2025, payable on October 15, 2025 [12][24] - The company will not pay a Q3 supplemental dividend as the measurement test cap exceeded 50% of this quarter's excess available earnings [25] Q&A Session Summary Question: Credit quality concerns regarding the watch list - Management acknowledged a slight increase in the watch list to 14% but emphasized a proactive approach to monitoring investments and maintaining transparency about portfolio health [29][30][31] Question: Impact of tariffs on portfolio companies - Management indicated that the direct impact of tariffs on the portfolio remains low and that companies are proactively managing tariff exposure through pricing power and alternative sourcing strategies [36][38][40] Question: Future portfolio growth and repositioning - Management stated that while they do not expect significant net portfolio growth, they are focused on rotating acquired assets into Crescent-originated opportunities without sacrificing diversification [42][46][49] Question: Evaluation of unitranche investments - Management noted that unitranche investments remain a small part of the portfolio, and they are opportunistic in pursuing such opportunities, ensuring control over the capital structure [52][54] Question: Operating leverage from declining energy prices - Management clarified that fuel input costs are not a significant component of the cost structure for most borrowers, and while some benefits may arise, they do not expect it to materially impact portfolio performance [57][58] Question: Second lien loan strategy - Management confirmed that second lien loans will not become a large component of the portfolio, maintaining a focus on first lien investments due to risk considerations [61][62]

Financial Performance - Net investment income (NII) per share for Q2 2025 was $0.46, compared to $0.45 in the previous quarter[19] - Net realized and unrealized losses on investments per share for Q2 2025 were ($0.05), compared to ($0.34) for the prior quarter[19] - Net income per share for Q2 2025 was $0.41, compared to $0.11 for the prior quarter[19] - NAV per share as of June 30, 2025, was $19.55[19] - A regular dividend of $0.42 per share was declared for Q3 2025[19] - Total net assets were $725 million as of Q2 2025[11, 21] Portfolio Composition - Total portfolio investments were valued at $1,601 million as of June 30, 2025, consisting of 187 portfolio companies across 20 industries[11, 19, 35] - 91% of the portfolio comprised of senior secured first lien and unitranche first lien investments by fair value[19, 35] - 97% of debt investments are floating rate[22, 35, 44] Capital Structure and Liquidity - The company has a strong liquidity profile with $26.1 million in cash and cash equivalents and restricted cash[19, 24] - Undrawn debt capacity was $227.2 million as of June 30, 2025[19, 63, 65] - The debt-to-equity ratio was 1.23x[11, 21, 24]

Group 1: Earnings Performance - Crescent Capital BDC reported quarterly earnings of $0.46 per share, matching the Zacks Consensus Estimate, but down from $0.59 per share a year ago [1] - The company had a revenue of $42.99 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 2.02%, but down from $48.95 million year-over-year [2] - Over the last four quarters, Crescent Capital BDC has surpassed consensus EPS estimates only once [1] Group 2: Stock Performance and Outlook - Crescent Capital BDC shares have declined approximately 24% since the beginning of the year, contrasting with the S&P 500's gain of 9.6% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.46 for the coming quarter and $1.81 for the current fiscal year [4][7] - The Zacks Rank for Crescent Capital BDC is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Financial - SBIC & Commercial Industry, to which Crescent Capital BDC belongs, is currently in the bottom 20% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly affect stock performance [5][8]

Core Viewpoint - Crescent Capital BDC, Inc. reported its financial results for the quarter ended June 30, 2025, highlighting a net investment income of $0.46 per share and a net income of $0.41 per share, with a net asset value (NAV) per share of $19.55 [1][4]. Financial Performance - Net investment income for the second quarter was impacted by a one-time accelerated amortization of $0.02 per share related to deferred financing costs [1]. - Investment income increased to $43.0 million from $42.1 million in the previous quarter, with interest income rising to $40.1 million [6]. - Total net expenses for the quarter were $26.1 million, compared to $25.5 million in the previous quarter [7]. Dividend Declarations - The Board declared a regular cash dividend of $0.42 per share for the third quarter of 2025, payable on October 15, 2025 [2]. - A special dividend of $0.05 per share will be paid on September 15, 2025 [2]. Share Repurchase Program - The Board authorized a stock repurchase program to buy back up to $20.0 million of common stock in the open market [3]. Investment Portfolio - As of June 30, 2025, the company had investments in 187 portfolio companies with a fair value of $1,600.7 million [5]. - The portfolio comprised various asset types, with the largest being unitranche first lien loans at $1,043.6 million, representing 65.2% of the total investments [5]. Liquidity and Capital Resources - As of June 30, 2025, the company had $26.1 million in cash and cash equivalents and $227.2 million of undrawn capacity on its credit facilities [8]. - The weighted average cost of debt was 6.09%, and the debt to equity ratio stood at 1.23x [8].

Core Insights - Crescent Capital BDC reported net investment income of $0.46 per share and net income of $0.41 per share for the quarter ended June 30, 2025, with a net asset value (NAV) per share of $19.55 [1][4] Financial Performance - Total investment income increased to $43.0 million for the quarter ended June 30, 2025, compared to $42.1 million for the previous quarter [6] - Net investment income for the quarter was $16.9 million, slightly up from $16.6 million in the prior quarter [4][6] - The company experienced net realized losses of $2.9 million and a net change in unrealized gains of $1.0 million for the quarter [4][6] Dividend Declarations - The Board declared a regular cash dividend of $0.42 per share for the third quarter of 2025, payable on October 15, 2025 [2] - A special dividend of $0.05 per share will be paid on September 15, 2025 [2] Share Repurchase Program - The Board authorized a stock repurchase program to buy back up to $20.0 million of common stock in the open market [3] Investment Portfolio - As of June 30, 2025, the company had investments in 187 portfolio companies with a fair value of $1,600.7 million [5] - The portfolio consisted primarily of unitranche first lien loans, making up 65.2% of the total investments [5] Liquidity and Capital Resources - The company had $26.1 million in cash and cash equivalents and $227.2 million of undrawn capacity on its credit facilities as of June 30, 2025 [8] - The weighted average cost of debt was 6.09%, with a debt to equity ratio of 1.23x [8] Upcoming Events - A conference call to discuss the financial results for the quarter ended June 30, 2025, is scheduled for August 14, 2025 [9]

[Crescent Capital BDC, Inc. Q2 2025 Earnings Release](index=1&type=section&id=Crescent%20Capital%20BDC%2C%20Inc.%20Q2%202025%20Earnings%20Release) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Crescent BDC reported Q2 2025 net investment income of **$0.46 per share** and **NAV of $19.55 per share**, declared a **$0.42 dividend**, and authorized a **$20 million stock repurchase program** Q2 2025 Key Per-Share Metrics | Metric | Value ($ per Share) | | :--- | :--- | | Net Investment Income | $0.46 | | Net Income | $0.41 | | Net Asset Value (NAV) | $19.55 | - The Board of Directors declared a third-quarter 2025 regular cash dividend of **$0.42 per share**[3](index=3&type=chunk) - A new stock repurchase program was authorized to buy back up to **$20.0 million** of common stock when trading below NAV[4](index=4&type=chunk) Quarterly Financial Trends | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Net asset value per share | $19.55 | $19.62 | $20.30 | | Net investment income per share | $0.46 | $0.45 | $0.59 | | Investments, at fair value | $1,600.7M | $1,620.7M | $1,610.8M | [Portfolio and Investment Activity](index=1&type=section&id=Portfolio%20and%20Investment%20Activity) The company's Q2 2025 portfolio fair value was **$1.6 billion**, primarily first lien debt, with net investment outflows Portfolio Composition by Asset Type (June 30, 2025) | Investment Type | Fair Value ($M) | Percentage | | :--- | :--- | :--- | | Senior secured first lien | $381.3 | 23.8% | | Unitranche first lien | $1,043.6 | 65.2% | | Unitranche first lien - last out | $26.2 | 1.6% | | Senior secured second lien | $23.4 | 1.5% | | Other (Unsecured, Equity, etc.) | $126.2 | 7.9% | | **Total investments** | **$1,600.7** | **100.0%** | Q2 2025 Investment Activity | Activity | Amount ($M) | | :--- | :--- | | New Investments & Fundings | $57.5 | | Exits, Sales & Repayments | $92.7 | [Results of Operations](index=2&type=section&id=Results%20of%20Operations) Q2 2025 total investment income increased to **$43.0 million** sequentially, driven by higher dividend income, with total net expenses also rising Investment Income Comparison (QoQ) | Income Type | Q2 2025 ($M) | Q1 2025 ($M) | | :--- | :--- | :--- | | Interest Income | $40.1 | $39.7 | | Dividend Income | $1.8 | $1.5 | | Other Income | $1.0 | $0.9 | | **Total Investment Income** | **$43.0** | **$42.1** | - Total net expenses for the three months ended June 30, 2025, were **$26.1 million**, compared to **$25.5 million** for the quarter ended March 31, 2025[9](index=9&type=chunk) [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) Crescent BDC maintained **$26.1 million** in cash and **$227.2 million** undrawn credit capacity, with a stable **1.23x** debt-to-equity ratio Liquidity and Leverage (June 30, 2025) | Metric | Value | | :--- | :--- | | Cash and Cash Equivalents | $26.1 million | | Undrawn Credit Facility Capacity | $227.2 million | | Weighted Average Cost of Debt | 6.09% | | Debt to Equity Ratio | 1.23x | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show total net assets of **$724.7 million** and Q2 net investment income of **$16.9 million** [Consolidated Statements of Assets and Liabilities](index=6&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) The balance sheet shows total assets of **$1.65 billion** and total liabilities of **$929.7 million**, with total net assets at **$724.7 million** Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $1,654,444 | $1,656,274 | | Total Liabilities | $929,728 | $915,637 | | **Total Net Assets** | **$724,716** | **$740,637** | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 operations generated **$43.0 million** in total investment income and **$16.9 million** in net investment income, with a **$15.0 million** net increase in net assets Income Statement Summary (Three Months Ended June 30, in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Total Investment Income | $42,992 | $48,951 | | Net Expenses | $25,705 | $26,815 | | **Net Investment Income** | **$16,887** | **$21,703** | | Net Realized/Unrealized Losses | $(1,874) | $(1,499) | | **Net Increase in Net Assets** | **$15,013** | **$20,385** | [Corporate Information and Events](index=2&type=section&id=Corporate%20Information%20and%20Events) Crescent BDC will host a conference call on August 14, 2025, to discuss Q2 results, managed by Crescent Capital Group with **$47 billion** in AUM - The company will host a conference call and webcast on Thursday, August 14, 2025, at 12:00 p.m. (Eastern Time) to discuss the quarterly results[11](index=11&type=chunk) - Crescent BDC is externally managed by Crescent Cap Advisors, LLC, a subsidiary of Crescent Capital Group, which has **$47 billion** of assets under management[18](index=18&type=chunk)[19](index=19&type=chunk)