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 Group 1: Market Context - Over $1 billion has been withdrawn from CLO ETFs in the US this month, attributed to the bankruptcies of Tricolor Holdings and First Brands Group [2].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]