Core Viewpoint - Japan is insisting on the removal of tariffs imposed by the U.S. on automobiles, auto parts, and steel and aluminum products during bilateral trade negotiations, emphasizing that any agreement that could harm national interests will not be rushed [1][2]. Group 1: Tariff Negotiations - Japan's Chief Trade Negotiator, Akira Amari, stated that the U.S. tariffs on automobiles, auto parts, steel, and aluminum are regrettable, and Japan's core position remains the complete cancellation of these tariffs [2]. - The Japanese government and ruling party believe that without the removal of the 25% tariff on automobile imports, any agreement would lack substantive meaning, given the automotive industry's critical role in Japan's economy [2]. - Despite reports suggesting Japan might shift its demand from "cancellation of tariffs" to "reduction of tariffs," Akira Amari did not indicate any change in stance during public statements [2]. Group 2: Negotiation Strategies - Japan is preparing a comprehensive proposal to encourage U.S. concessions, which may include increasing imports of U.S. corn and soybeans, advancing technology cooperation in shipbuilding, and revising automobile import inspection standards [2].

Summary of Key Points from the Conference Call Transcript Industry Overview - The conference call discusses macroeconomic conditions, particularly focusing on the US-China trade deal and its implications for various economies including the US, China, Europe, and Latin America [2][10]. Core Insights and Arguments 1. **US-China Trade Deal**: The recent trade deal signifies a substantial de-escalation in trade tensions, prompting revisions in macro and market forecasts. The US growth forecast for 2023 has been increased to 1.0% from 0.5% [2][10]. 2. **Unemployment Rate**: The year-end unemployment rate forecast for the US has been lowered to 4.5% from 4.7% [2][10]. 3. **Recession Odds**: The odds of a recession in the US over the next 12 months have been reduced to 35% from 45% due to improved financial conditions [2][10]. 4. **Federal Reserve Rate Cuts**: The expectation for the Federal Reserve to initiate a series of three rate cuts has been moved to December, with cuts anticipated at an every-other-meeting pace [2][10]. 5. **China's Export Growth**: The forecast for China's export volume growth in 2025 has been revised to 0% from -5%, indicating a more stable outlook [2][10]. 6. **GDP Growth Forecasts**: GDP growth forecasts for 2025/26 have been raised for China (4.6%/3.8%), Korea (1.1%), Taiwan (3.5%), and Vietnam (5.5%) [2][10]. 7. **European Economic Outlook**: The Euro area’s GDP forecasts for 2025/26 have been increased to 0.9%/1.1%, and core inflation forecasts for Q4 2025/26 have been raised to 2.1%/1.8% [2][10]. 8. **UK Economic Projections**: The UK’s GDP growth forecasts for 2025/26 have been lifted to 1.2%/1.1%, with expectations for the Bank of England to cut rates to 3% in February [2][10]. 9. **Latin America**: The outlook for Mexico has improved, with no expected technical recession this year [2][10]. Market Implications 1. **S&P 500 Index Targets**: The 3/6/12 month targets for the S&P 500 index have been raised to 5900/6100/6500 from 5700/5900/6200, with EPS forecasts increased to $262 and $280 for this year and next, respectively [2][10]. 2. **STOXX Europe 600 Index**: The targets for the STOXX Europe 600 index have been lifted to 550/560/570 from 470/490/520 [2][10]. 3. **MSCI China and CSI300 Index**: The 12-month targets for MSCI China and CSI300 indices have been revised to 84 and 4600, respectively [2][10]. Additional Considerations 1. **Federal Reserve Independence**: Concerns regarding the independence of the Federal Reserve have been raised, particularly in light of political pressures, which could lead to inflationary pressures and affect the appeal of the US Dollar and Treasuries [10][11]. 2. **US Household Balance Sheets**: US household balance sheets are reported to be healthy, with stable delinquency rates, except for student loans. Investors are advised to focus on segments with stronger borrower profiles [11][12]. 3. **Lessons from the UK Gilt Crisis**: The UK Gilt crisis has resulted in a higher risk premium for UK assets, which may serve as a cautionary tale for the US market regarding the growth-inflation trade-off [12][10]. Conclusion The conference call highlights a cautiously optimistic outlook for global economies, particularly in light of the US-China trade deal, while also addressing potential risks related to Federal Reserve independence and household debt dynamics. The revisions in growth forecasts and market targets reflect a more favorable economic environment, albeit with caution advised for potential recessionary outcomes.

Financial Data and Key Metrics Changes - The company reported an increase in earnings and cash flow compared to Q1 2024, which was already a strong quarter [14] - Gross debt increased to just under $778 million due to financing of recently acquired vessels, while cash position stood at $428 million, with $90 million restricted [14][15] - The net debt to EBITDA ratio has improved to under 1, down from 8.4 times at the end of 2018, indicating significant deleveraging [15][16] Business Line Data and Key Metrics Changes - The company added 19 charters worth approximately $352 million in contracted revenues during Q1 2025, bringing total contracted revenues to nearly $1.9 billion with an average remaining contract cover of 2.3 years [11][12] - The charter market remains strong, with the company’s breakeven rate at approximately $9,300 per vessel per day, significantly lower than current market charter rates [33][36] Market Data and Key Metrics Changes - The container ship charter market has remained exceptionally tight, with essentially zero idle capacity globally [6] - The overall order book for ships over 10,000 TEU is 54.3%, contrasting with only 11.5% for ships under 10,000 TEU, indicating a limited replacement capacity for the company’s focus segment [32] Company Strategy and Development Direction - The company aims to maximize optionality and financial resilience while maintaining a disciplined approach to fleet renewal and capital allocation [12][36] - The strategy includes opportunistically monetizing older ships to build cash reserves for future investments [8][36] Management's Comments on Operating Environment and Future Outlook - Management highlighted the macroeconomic uncertainty and its impact on the container shipping industry, noting that the situation remains fluid with potential uneven effects from tariffs and trade barriers [6][7] - The company is well-positioned to capitalize on opportunities as they arise, with a strong balance sheet and increased return of capital to shareholders through a raised dividend [9][36] Other Important Information - The company has successfully reduced its cost of debt to a blended rate of 3.99%, despite rising interest rates in the broader market [16] - The company’s fleet includes 10 Chinese-built ships, with only four larger than 4,000 TEU, minimizing exposure to potential U.S. tariffs on Chinese-built vessels [25] Q&A Session Summary Question: Interest in extending existing charters at better rates - Management indicated that while some charters fixed during the super cyclical high of COVID may see a reduction in rates, there is still appetite for attractive new charters [43][44] Question: Acquisition front and asset prices - Management stated they are always looking at deals but maintain strict criteria for acquisitions, focusing on financial sense rather than growth for its own sake [47][48] Question: Charter market dynamics and recent activity - Management noted a temporary slowdown in the charter market in April, but recent interest has picked up following a surge in spot freight rates [55][56] Question: Cash position and future plans - Management emphasized the importance of maintaining a robust cash position for flexibility and resilience, while continuing to deleverage and manage risks [60]

金十数据5月16日讯，据英国金融时报报道，美国总统特朗普周五在阿联酋与企业高管会面时表示，美 国可能会单方面对许多贸易伙伴设定新的关税税率，而不是与所有贸易伙伴达成协议。华盛顿方面 将"在未来两到三周内"征收新的关税。特朗普补充说，财长贝森特和商务部长卢特尼克将"发出信函， 基本上是告诉人们，他们在美国做生意需要支付多少钱"。特朗普表示，虽然有"150个国家"希望达成协 议，但"不可能与所有国家会面"。 特朗普：将在未来两到三周内对许多国家征收新的关税 ...

据英国金融时报：特朗普周五在阿联酋与企业高管的会议上表示，美国将单方面对许多贸易伙伴设定新 的关税税率，而不是与所有贸易伙伴达成协议。华盛顿将在"未来两到三周内"征收新的关税。 ...

Economic Data and Market Sentiment - The market is experiencing a downward trend, with increasing bets on the easing of trade risks and a delay in global interest rate cuts [3] - The release of a joint statement on trade tariffs has reduced expectations of chaotic trade risks, but the anticipated increase of over 10% in tariffs is still pushing global price inflation expectations higher [3] - The upcoming release of the US April PPI and retail sales data is being closely monitored, with potential risks of data volatility [3][4] Key Economic Indicators - The US April PPI year-on-year is expected to be 2.5%, down from the previous 2.7%, which may negatively impact the dollar [4] - The core PPI year-on-year is anticipated to decrease to 3.1% from 3.3%, also likely to be bearish for the dollar [4] - Retail sales month-on-month for April is expected to remain flat at 0%, down from a previous increase of 1.4%, which could further weigh on the dollar [4] Gold Market Analysis - Gold prices have shown a significant decline, breaking below the 3200 mark, indicating a bearish trend [5] - The highest price for gold yesterday was 3257.8, while the lowest was 3174.8, resulting in a maximum trading range of 83 dollars and a final drop of 70.8 dollars [5] - The market structure suggests continued downward pressure, with potential further declines towards the 3100 level [6]

2025年初欧元区经济增长弱于预期，尽管出口在特朗普关税前增加 金十数据5月15日讯，尽管由于美国公司在征收贸易关税之前争相囤积进口商品，推动了工厂产出的增 长，但欧元区经济的增长速度低于年初的预期。欧盟统计局周四公布的数据显示，第一季度欧元区GDP 季率修正值为0.3%。初值为0.4%。整个季度工业生产的持续增长推动了经济增长。欧盟统计局称，3月 份产出环比增长2.6%，这一增幅远高于经济学家预期的1.1%，标志着连续第三个月产出增长。欧洲工 业强国德国和医药生产中心爱尔兰3月份的产出增长超过3%，推动了3月份产出的增长，爱尔兰的产量 比前一个月增长了约15%。这两个经济体是欧元区受特朗普总统的贸易关税影响最大的经济体，它们的 工厂产出激增表明，美国进口商在特朗普总统4月初提出的一揽子关税计划出台之前囤积库存。 ...

Financial Data and Key Metrics Changes - The company reported net investment income of $37 million for the quarter, corresponding to an annualized return on equity (ROE) of 9.8% [6] - GAAP net income per share was $0.32, reflecting an annualized ROE of 8.7% [6] - NAV per share decreased to $14.93, down $0.05 or approximately 30 basis points [6] - Total investment income for the quarter was approximately $78.7 million, down $3.5 million or 4.2% compared to the prior quarter [36] - Net investment income per share was $0.37, with a net loss of approximately $4 million or $0.05 per share [40][41] Business Line Data and Key Metrics Changes - The portfolio had a fair value of $3.19 billion, invested in 240 companies across 49 different industries [23] - Direct origination and other represented 92% of the total portfolio, up from 90% in the previous quarter [23] - The weighted average yield at cost of the direct origination portfolio was 10.7%, down from 11% in the previous quarter [25] - The weighted average net leverage on new commitments was 4.2x, down from 4.3x in the prior quarter [21] Market Data and Key Metrics Changes - The company made $376 million of new commitments during the quarter, with a weighted average spread of 513 basis points across 33 different companies [20] - The non-direct origination assets onboarded from mergers represented just 2% of the total portfolio at fair value [9] - MidCap Financial closed approximately $6.5 billion of commitments during the quarter, despite muted sponsor M&A activity [10] Company Strategy and Development Direction - The company focuses on building a diversified portfolio of first lien floating rate direct corporate loans in less cyclical industries [7][26] - The management believes the core middle market offers attractive opportunities across cycles and does not compete directly with the broadly syndicated market or the high yield market [11] - The company is actively deploying capital from mergers and has a robust pipeline for future investments [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the current uncertainty stemming from trade tariffs could pose challenges, but the impact is expected to be limited [8] - The company is monitoring the speed of confidence restoration among consumers and corporates, which is crucial for economic recovery [16] - Management expressed confidence in the portfolio's stability, with no signs of general credit weakness observed [30] Other Important Information - The company declared a quarterly dividend of $0.38 per share, payable on June 26, 2025 [19] - The company repurchased approximately 477,000 shares at a weighted average price of $12.75, which had an accretive impact on NAV per share [42] Q&A Session Summary Question: Can you discuss the strong fundings in Q2 despite cautious commentary? - Management indicated that strong deployment in Q1 was a result of activity that commenced earlier, and they expect fewer auctions in the latter half of the year [47] Question: What is the sustainability of the dividend relative to NII? - Management expressed comfort in their earnings power and capital plan, noting that prepayment income can fluctuate [50] Question: How dependent is MFIC on M&A activity for new originations? - Management clarified that MFIC is not completely reliant on M&A activity, as there are existing portfolios and opportunities for growth [55] Question: What is the exposure to government contracts in the portfolio? - Management stated that they have limited exposure to government payments and have always assessed such risks in their underwriting [70] Question: What is the meaningful exposure to tariff-affected countries? - Management indicated that the exposure is in single digits and emphasized their focus on U.S. companies with less complex supply chains [74] Question: What are the trends in amendment activity? - Management noted that amendment activity was relatively flat quarter over quarter, with no significant changes observed [77]

Financial Data and Key Metrics Changes - Net investment income for Q1 2025 was $37 million, corresponding to an annualized return on equity (ROE) of 9.8% [6] - GAAP net income per share was $0.32 for the quarter, corresponding to an annualized ROE of 8.7% [6] - NAV per share was $14.93 at the end of March, down $0.05 or approximately 30 basis points [6][7] - Total investment income for March was approximately $78.7 million, down $3.5 million or 4.2% compared to the prior quarter [36] - Net investment income per share was $0.37, reflecting a net loss of approximately $4 million or $0.05 per share [40][41] Business Line Data and Key Metrics Changes - MFIC made new commitments totaling $376 million during the quarter, with a weighted average spread of 513 basis points across 33 different companies [21] - The weighted average net leverage on new commitments was 4.2x, down from 4.3x in the prior quarter [22] - Direct origination and other represented 92% of the total portfolio, up from 90% last quarter [23] - The weighted average yield at cost of the direct origination portfolio was 10.7%, down from 11% in the previous quarter [26] Market Data and Key Metrics Changes - MidCap Financial closed approximately $6.5 billion of commitments during the quarter, despite muted sponsor M&A activity [10] - The weighted average net leverage of borrowers was 5.25 times at the end of March, down from 5.5 times at the end of December [31] - Investments on nonaccrual status decreased to 0.9% of the portfolio at fair value, down from 1.3% last quarter [33] Company Strategy and Development Direction - The company focuses on building a diversified portfolio of first lien floating rate direct corporate loans in less cyclical industries [7][30] - The management believes the core middle market offers attractive opportunities across cycles and does not compete directly with the broadly syndicated market or the high yield market [11][19] - The company is actively monitoring the impact of trade tariffs on its portfolio and has categorized its direct lending portfolio based on the severity of the tariffs [29] Management's Comments on Operating Environment and Future Outlook - The management noted that the current economic environment is characterized by volatility and uncertainty, particularly due to trade tariffs and potential recession fears [15][18] - They expect that the uncertainty in public debt markets may drive borrowers to seek solutions in the private market, which could benefit direct lenders [18] - The management remains optimistic about the company's ability to increase earnings despite the challenges posed by the economic environment [49] Other Important Information - The company declared a quarterly dividend of $0.38 per share, payable on June 26, 2025 [20] - The company repurchased approximately 477,000 shares at a weighted average price of $12.75, which had an accretive impact on NAV per share of approximately $0.01 [43] Q&A Session Summary Question: Can you discuss the strong fundings in Q2 despite cautious commentary? - Management explained that the strong deployment in Q1 reflects activity that commenced earlier in the year, and they expect fewer auctions in the latter half of the year [47] Question: What is the outlook for dividend sustainability relative to NII? - Management expressed comfort in their earnings power and capital plan, noting that prepayment income can fluctuate [49] Question: How dependent is MFIC on M&A activity for new originations? - Management clarified that MFIC is not completely reliant on M&A activity, as there are existing portfolios and opportunities for growth [55] Question: What is the current assessment of M&A recovery timeline? - Management indicated that the timeline for M&A recovery is uncertain, but significant capital expenditures and infrastructure spending may create credit opportunities [63] Question: What is the exposure to tariff-affected countries in the portfolio? - Management stated that the exposure is in single digits and emphasized their focus on U.S. companies with less reliance on diverse supply chains [74] Question: What trends are observed in amendment activity? - Management noted that amendment activity was relatively flat quarter over quarter, with no significant changes in covenant violations [76]

Report Industry Investment Rating No relevant content provided. Core Viewpoints - The USDA's May supply and demand report is moderately bullish, with lower-than-expected ending stocks for US soybeans in the 24/25 and 25/26 seasons [5]. - The easing of trade tariffs boosts the future demand for US soybeans, while putting pressure on Brazilian soybeans. The domestic soybean meal futures may stop falling and stabilize, but the spot price is expected to be weak [14]. - For live pigs, the short - term supply pressure is moderate, but there is potential pressure in the medium - term. Demand is cooling, and the price is expected to fluctuate weakly [15]. Summary by Directory 1. Market Overview - The DCE soybean meal main contract 2509 fell 0.76% to 2886 yuan/ton, and coastal oil mills' quotes dropped by 20 - 80 yuan/ton. The DCE live pig main contract 2509 rose 0.11% to 13885 yuan/ton. The national average ex - farm price of ternary live pigs was flat at 14.71 yuan/kg. The CBOT US soybeans main contract rose 1.69% to 1070 cents/bushel [2]. 2. Weather in Main Producing Areas - The temperature in the US Midwest is rising this week, and the weather pattern will become more active. There were scattered showers in the south last week, and the overall weather was dry over the weekend. Some areas may have showers this week. The planting progress and early growth conditions are expected to improve, but long - term dryness may cause problems [3]. 3. Macroeconomic and Industry News - In the 19th week of 2025, the inventory of major domestic oil mills' soybean meal increased by 23.26% week - on - week to 10.12 million tons, and decreased by 81.90% year - on - year [4]. - On May 12, the trading volume of major domestic oil mills' soybean meal decreased by 4.84 million tons to 9.66 million tons. The national dynamic full - sample oil mill operating rate dropped by 2.26% to 54.80% [4]. - On May 13, the import cost of US soybeans rose by 80 yuan to 8844 yuan, Brazilian soybeans rose by 86 yuan to 3734 yuan, and Argentine soybeans rose by 40 yuan to 3587 yuan [4]. - On May 13, the daily slaughter volume of key slaughter enterprises increased by 0.03% to 123,701 heads, while the daily出栏量 of key breeding enterprises decreased by 2.5% [4]. - The USDA's May supply and demand report is moderately bullish, with lower - than - expected ending stocks for US soybeans in the 24/25 and 25/26 seasons [5]. - The US soybean planting rate is 48%, higher than the expected 47%, and the emergence rate is 17% [5]. - The global oilseed production in 2025/26 is expected to be 692.1 million tons, a 2% increase. Global soybean production is expected to be 426.8 million tons, a 1% increase [5]. - The market expects the Fed to maintain the interest rate in June with an 88.4% probability and in July with a 59.2% probability [6]. 4. Data Charts - The report provides charts on the prices of soybean meal, rapeseed meal, live pigs, and their basis, as well as the inventory of Chinese soybeans and soybean meal [9][10][13]. 5. Analysis and Strategies - Soybean Meal: US soybean futures reached a three - month high. The easing of trade tariffs and the bullish USDA report boost the price. The domestic soybean meal futures may stop falling, but the spot price is expected to be weak due to increased supply expectations [14]. - Live Pigs: In the short - term, the supply pressure is moderate, but there is potential pressure in the medium - term. Demand is cooling, and the price is expected to fluctuate weakly [15].