CHICAGO, Jan. 06, 2026 (GLOBE NEWSWIRE) -- XA Investments LLC (“XAI”), a leader in closed-end interval and tender offer fund research, is now offering the Octagon XAI CLO Income Fund (“OCTIX” or the “Fund”) for purchase by advisers who clear or custody through the Charles Schwab platform (“Schwab”), expanding access of XAI’s registered offerings for financial advisors and their clients. “The addition of OCTIX to the Charles Schwab platform marks a major milestone for the fund. As one of the largest custodia ...

Core Points - Pearl Diver Credit Company Inc. will release its third quarter 2025 financial results on November 18, 2025, before market open [1] - A conference call to discuss the financial results is scheduled for the same day at 11:00 am Eastern Time / 4:00 pm UK Time [1][2] - The company is externally managed and focuses on maximizing total return and generating high current income through investments in equity and junior debt tranches of CLOs [4] Company Overview - Pearl Diver Credit Company Inc. is a non-diversified, closed-end management investment company listed on NYSE under the symbols PDCC and PDPA [4] - The company primarily invests in sub-investment grade, senior secured floating-rate debt issued by various US companies across multiple sectors [4] - As of September 30, 2025, Pearl Diver Capital manages approximately $2.9 billion in assets across multiple private funds backed by institutional investors [6] Management and Strategy - Pearl Diver Capital LLP, founded in 2008, specializes in CLO investing and employs advanced analytics to identify investment opportunities [5] - The firm has established relationships with over 80 CLO managers, providing access to critical credit information while avoiding conflicts of interest [6]

Core Viewpoint - The launch of collateralized loan obligation (CLO) ETFs occurs during a challenging period, marked by significant investor withdrawals and corporate bankruptcies, yet new products targeting lower-quality CLOs are entering the market [1][2]. Group 1: Market Context - Over $1 billion has been withdrawn from CLO ETFs in the US this month, attributed to the bankruptcies of Tricolor Holdings and First Brands Group [2]. - JPMorgan reported a loss of $170 million related to Tricolor's bankruptcy, prompting credit managers to reassess their corporate debt holdings [2]. - Recent reports of fraud related to distressed commercial mortgages have further impacted the market [2]. Group 2: New ETF Launches - Reckoner Capital Management launched the Reckoner BBB-B CLO ETF (RCLO) on October 22, focusing on lower-quality, higher-yielding CLOs [3]. - Advisors Asset Management introduced the AAM Crescent CLO ETF (CLOC), which spans various credit qualities, in response to inflation and interest-rate volatility [4]. Group 3: ETF Details - RCLO charges a fee of 0.50% and has $28 million in assets, benchmarked against the JPMorgan CLO High Quality Mezzanine Index [5]. - CLOC is positioned as the lowest-cost CLO ETF with net expenses of 0.18% and $50 million in assets, benchmarked against the JPMorgan US CLOIE IG Index [5]. - There are at least 19 other US CLO ETFs in the market, collectively representing about $37 billion in assets, with $14 billion in net flows recorded this year through September [5].

Core Insights - XA Investments plans to host a webinar on October 23, 2025, to discuss recent developments in the CLO and leveraged loan market [1] - The webinar will be moderated by Kevin Davis, with participation from Kimberly Flynn and Ben McCulloch, all of whom are associated with XA Investments [1] Company Overview - XA Investments LLC, founded in 2016, is based in Chicago and serves as the investment adviser for two listed closed-end funds and one interval closed-end fund [3] - The firm provides investment fund structuring and consulting services, focusing on registered closed-end funds to meet institutional client needs [3] - XAI aims to offer new vehicles for the investing public to access a broad range of alternative investment strategies [3] Investment Advisory - Octagon Credit Investors, a sub-adviser for XA Investments, manages $33.8 billion in below-investment grade corporate credit investments, focusing on leveraged loans, high yield bonds, and structured credit [5] - Octagon employs fundamental credit analysis and active portfolio management to identify attractive investment opportunities [5] - The firm emphasizes a disciplined and scalable approach to generate attractive risk-adjusted returns for investors [5]

Core Viewpoint - INSPIRION Wealth Advisors, LLC has completely exited its position in the BlackRock ETF Trust II - iShares AAA CLO Active ETF, selling 435,635 shares for an estimated $22.62 million as of October 6, 2025 [2][3]. Group 1: Transaction Details - The sale of the entire position in CLOA was reported in a filing with the SEC, indicating a strategic shift in the fund's investment approach [2]. - The fund now holds no shares in CLOA, which previously represented a portion of its assets [3]. Group 2: Fund Performance and Holdings - Following the exit from CLOA, the fund's top holdings include JAAA at $100.99 million (14.1% of AUM), VYM at $55.29 million (7.7% of AUM), and VUG at $49.60 million (6.9% of AUM) [3]. - As of October 3, 2025, shares of CLOA were priced at $51.79, with a one-year total return of 0.06%, underperforming the S&P 500 by 11.8 percentage points [3]. Group 3: Company Overview - INSPIRON's investment strategy focuses on actively managing a portfolio of U.S. dollar-denominated collateralized loan obligations (CLOs) rated AAA or equivalent, aiming for high credit quality and income [5]. - The fund is structured as a non-diversified ETF, emphasizing income generation and credit quality through investments in AAA-rated CLO securities [6]. Group 4: Historical Performance - Over the past five years, INSPIRON's portfolio holdings have increased by 146%, from $291 million in Q3 2020 to $715 million by the end of Q3 2025, significantly outperforming the S&P 500, which rose by 99% during the same period [7].

Financial Data and Key Metrics Changes - The company reported GAAP net income of $0.27 per share and adjusted net investment income of $0.18 per share for calendar Q2 [10] - The annualized economic return was nearly 20% net, and NAV per share grew [4] - The NAV at quarter end was $6.12 per share, with a NAV-based total return of 19.7% annualized [17] Business Line Data and Key Metrics Changes - The CLO portfolio grew by 27% quarter over quarter to $317 million, with new purchases of $91 million [14] - Contributions to net investment income came from U.S. CLO debt ($0.12), European CLO debt ($0.02), U.S. CLO equity ($0.02), and a penny loss on European CLO equity [10][11] - The company disposed of all remaining mortgage positions shortly after the REIT conversion, with minimal NAV impact [14] Market Data and Key Metrics Changes - Credit spreads on U.S. corporate high yield and investment grade bonds tightened overall during the quarter, with May and June's recovery offsetting April's weakness [5] - In Europe, leveraged loan prices posted modest gains but lagged behind the U.S. [12] - The CLO market saw high issuance levels historically, but lower than recent quarters due to intra-quarter volatility [6] Company Strategy and Development Direction - The company is focusing on CLO investments, benefiting from the closed-end fund structure, which enhances tax efficiency and allows for a concentrated investment strategy [9] - There is an emphasis on increasing exposure to CLO mezzanine positions and shifting focus to the secondary market for better relative value [21][22] - Plans to issue long-term unsecured debt later this year to increase leverage and enhance earnings growth [26] Management's Comments on Operating Environment and Future Outlook - Management noted that the market environment remains uncertain due to tariff policies, which could create winners and losers among sectors [42] - The company expects net investment income to cover its distribution rate starting in September, indicating confidence in future performance [8][26] - The management believes that the portfolio is well-balanced with core positions for stability and others offering upside potential [23] Other Important Information - The company maintained a cash and cash equivalents total of $36.6 million at quarter end [17] - The CLO portfolio is heavily weighted towards first lien floating rate leveraged loans, with no single sector exceeding 11% [15] Q&A Session Summary Question: Why haven't AAA spreads fully retraced while underlying loan spreads have? - Management indicated that there is less demand for AAA CLOs compared to earlier in the year, which has affected pricing [31][32] Question: Would the allocation remain similar to June, leaning more towards debt than equity? - Management suggested that if the market conditions remain challenging, the allocation would likely continue to favor debt over equity [35] Question: Will CLO issuance trends reverse by year-end? - Management noted that new issuance depends on the attractiveness of loan versus debt spreads, and it is uncertain if the market will see a significant increase in new issuance [40] Question: Is there an increased risk perception for equity tranches? - Management acknowledged that equity tranches carry more risk due to their first-loss position, especially in light of tariff uncertainties [42] Question: What is the updated quarter-to-date NAV estimate? - The company reported a NAV estimate around $6.16 as of July 31 [46]

Group 1 - Brompton Wellington Square AAA CLO ETF announced distributions of Cdn$0.08960 per unit for BAAA and US$0.08950 per unit for BAAA.U, payable on August 15, 2025, to unitholders of record at the close of business on July 31, 2025 [1] - Brompton Funds, founded in 2000, is an experienced investment fund manager offering income and growth-focused investment solutions, including TSX traded closed-end funds and exchange-traded funds [2] - Wellington Square Advisors Inc. is a Toronto-based independent investment advisory with over 10 years of experience in investing in CLOs, led by portfolio managers Jeff Sujitno and Amar Dhanoya [3]

Core Insights - Palmer Square Capital Management celebrates the 10-year anniversary of its CLO indices, which were first introduced on May 29, 2015, providing daily performance benchmarks for the CLO market [1][2] Company Overview - Palmer Square Capital Management was founded in 2009 and manages over $34.2 billion in fixed income and credit investments as of March 31, 2025 [7] - The firm focuses on Opportunistic Credit, Income Strategies, Private Credit, and CLOs, offering various investment products including mutual funds and private partnerships [7] Industry Insights - The CLO market has grown significantly from approximately $400 million a decade ago to over $1 trillion in market value, highlighting the rapid expansion of this asset class [4] - Palmer Square's daily performance indices have contributed to the transparency and growth of the CLO market, allowing investors to benchmark performance effectively [4] Performance Data - The Palmer Square CLO Senior Debt Index (CLOSE) has shown varied performance over the years, with a year-to-date return of 1.57% in 2025 and a peak return of 9.01% in 2023 [3] - The Palmer Square CLO Debt Index (CLODI) has also demonstrated strong performance, achieving a return of 13.22% in 2024 and 17.40% in 2023 [3]

Company Overview - Pearl Diver Credit Company Inc. is an externally managed, non-diversified, closed-end management investment company focused on maximizing total return and generating high current income through investments primarily in equity and junior debt tranches of CLOs [4] - As of March 31, 2025, the company has approximately $2.8 billion in assets under management, backed by institutional investors including public pension plans and university endowments [6] Upcoming Financial Results - The company will release its first quarter 2025 financial results before market open on April 29, 2025, and will host a conference call at 11:00 a.m. Eastern Time to discuss these results [1][2] Conference Call Details - Investors and analysts can participate in the conference call by dialing the provided numbers approximately 10 minutes prior to the start [2] - A live audio webcast of the conference call will be available on the company's website [2] Company Management and Strategy - Pearl Diver Capital LLP, founded in 2008, specializes in CLO investing and employs advanced analytics to identify opportunities in the CLO market [5] - The firm has established relationships with over 80 CLO managers, providing access to critical credit information while avoiding conflicts of interest [6]