Pearl Diver Credit Q4 Earnings Call Highlights

Looking ahead, Basu said the company remains optimistic about CLOs relative to other traded asset classes and pointed to strong demand. He also said CLO debt tranches delivered “solid full-year returns” in 2025, aided by pull-to-par dynamics in older vintages despite tighter spreads.According to Basu, the primary pressure point was “substantial spread tightening” in underlying loans—about 34 basis points in the U.S. loan market—paired with a bifurcated environment in which CLO managers bid aggressively for ...