Group 1 - Oxbow Advisors reduced its position in Vanguard 0-3 Month Treasury Bill ETF (VBIL) by 342,176 shares, valued at approximately $25.83 million, indicating a portfolio rebalancing rather than a loss of confidence in the investment [1][5][11] - VBIL represents 11.53% of Oxbow's total assets under management after the sale, highlighting its significance in the portfolio [1][4] - The Vanguard 0-3 Month Treasury Bill ETF offers a low-cost option for investors seeking exposure to short-term U.S. Treasury bills, focusing on securities with maturities of three months or less [2][3] Group 2 - The ETF employs a disciplined sampling strategy to closely track its benchmark while ensuring high liquidity and minimal interest rate risk, appealing to risk-averse investors [2][3] - Treasuries, including short-duration T-bills, are considered low-risk investments backed by the U.S. government, providing liquidity but typically lower income generation compared to long-term securities [6] - The current market environment for Treasuries is influenced by Federal Reserve actions and a steepening Treasury yield curve due to debt concerns, which investors should monitor [7]

Core Viewpoint - The First Trust Enhanced Short Maturity ETF (FTSM) is positioned as a competitive option for investors seeking capital preservation and income in a changing interest rate environment, with a focus on short-duration fixed income securities [1][5]. Fund Overview - FTSM targets an average portfolio duration of less than one year and maturity under three years [1]. - The fund has an annualized dividend yield of 4.3% as of January 12, 2026 [1]. - Over the past year, FTSM achieved a total return of 4.7%, which lagged the S&P 500 by 13.1 percentage points [2]. Recent Transactions - Kaydan Wealth Management, Inc. increased its stake in FTSM by 360,223 shares, with an estimated transaction value of $21.61 million [3][4]. - After the transaction, Kaydan Wealth held 415,493 shares valued at $24.9 million, representing 7.2% of its 13F reportable assets under management (AUM) [3][4]. Investment Implications - The increase in Kaydan Wealth's position in FTSM indicates a strategic move towards capital preservation, particularly in light of discussions around potential interest rate cuts [5]. - FTSM's allocation includes over half (53%) in corporate bonds, with most holdings maturing in two years or less, making it a conservative investment option [6]. Portfolio Diversification - FTSM serves as a hedge against volatility and offers diversification benefits, falling just outside Kaydan's top five holdings, which include various asset classes such as developed markets and gold [7].

A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2024, Quarterly Reports on Form 10-Q for the quarters ending ...

Core Viewpoint - Ocean Park Asset Management has fully exited its position in the Vanguard Long-Term Corporate Bond ETF (VCLT), selling 342,600 shares for an estimated value of $26.60 million, indicating a strategic shift away from long-duration bond exposure [2][3][7]. Transaction Details - The sale of 342,600 shares of VCLT was reported in a filing with the Securities and Exchange Commission, with no remaining shares held at the end of the fourth quarter [3][7]. - The transaction reflects a broader trend of reducing exposure to rate-sensitive bonds, as Ocean Park also sold $6.98 million of the VanEck Fallen Angel High Yield Bond ETF and fully exited the iShares Fallen Angels USD Bond ETF in a separate $31.48 million liquidation [11]. ETF Overview - The Vanguard Long-Term Corporate Bond ETF (VCLT) has an Assets Under Management (AUM) of $8.36 billion and offers a yield of 5.5% [5]. - As of the latest market close, VCLT shares were priced at $76.86, with a one-year total return of approximately 7% [4][5]. Investment Strategy - VCLT aims to track the Bloomberg U.S. 10+ Year Corporate Bond Index, focusing on investment-grade, long-term corporate bonds, primarily U.S. dollar-denominated, fixed-rate bonds with maturities greater than 10 years [9][10]. - The fund is passively managed with a low-cost indexing approach, designed for investors seeking long-duration corporate bond exposure [9][10]. Market Sensitivity - The ETF is sensitive to shifts in long-term interest rate expectations, with price volatility potentially overwhelming income when rates remain elevated [12]. - Ocean Park's remaining top holdings indicate a preference for diversified high-yield and core bond exposure, suggesting a shift towards shorter duration and higher liquidity investments [12].

Core Insights - Investing for passive income through ETFs is considered more reliable than seeking pure capital appreciation [1][2] Group 1: ETFs and Passive Income - ETFs provide high liquidity, trade like stocks, and offer diversification by holding a basket of stocks [1] - Many risk-averse investors prefer dividend stocks for passive income, which can be more reliable than capital appreciation [2] Group 2: Vanguard Long-Term Corporate Bond ETF (VCLT) - VCLT focuses on investment-grade corporate bonds with a weighted-average maturity of 10 to 25 years and has a low expense ratio of 0.03% [3] - Approximately 89% of VCLT's bonds carry an investment-grade rating of A or BBB, indicating a lower risk of default [6] - The fund includes high-quality companies such as Anheuser-Busch, CVS Health, and Goldman Sachs, which are unlikely to fail [6] Group 3: Risks and Market Performance - Bonds carry credit risk and interest rate risk, with values declining as interest rates rise [5][7] - VCLT has decreased by roughly 30% over the past five years due to rising interest rates, but investors will be repaid in full plus interest if companies do not default [8] - A decline in interest rates could help VCLT's price recover [8] Group 4: Dividend Yield and Performance - VCLT currently yields 5.62%, significantly higher than the S&P 500's yield of about 1.15%, making it an attractive option for passive income [9] - The fund has consistently paid dividends since 2009, maintaining a strong yield despite some variations [9]

Core Insights - The current economic growth, driven by the AI data center boom, is not translating into significant job growth, indicating a potential disconnect between GDP growth and labor market strength [1][3] - The Federal Reserve is expected to continue cutting rates due to a weakening labor market, despite inflation being slightly above their target [4][5] - A K-shaped recovery is observed among consumers and corporations, suggesting that not all sectors are benefiting equally from the economic growth [6] Federal Reserve Expectations - The Fed's plans for rate cuts may be disrupted by labor market weaknesses, which could lead to a more stimulative approach [4][5] - A December rate cut is anticipated, with additional cuts likely in the following year as the labor market continues to weaken [5][6] - The Fed is currently above neutral and may continue to cut rates to avoid being restrictive [7] Fixed Income Market Implications - Weakening labor market conditions and potential Fed rate cuts could lead to favorable returns for fixed income investors, particularly in the front to belly of the yield curve [9][10] - The market is pricing in Fed funds forecasts that are considered too high, suggesting benefits for those taking interest rate risks [10][12] - A diversified portfolio that includes emerging markets and securitized products is recommended to capture higher yields and spread opportunities [13][24] Investment Strategies - Agency mortgage-backed securities and commercial mortgage-backed securities are highlighted as attractive sectors due to their potential for spread compression and benefits from falling interest rates [18][19] - The recently launched Eaton Vance Income Opportunities ETF (XAGG) aims to provide exposure to a barbell approach in fixed income, focusing on sectors that offer higher yields and diversification [20][21] - The ETF targets a weighted average investment grade, ensuring a balanced risk profile while seeking outperformance compared to traditional fixed income investments [22][23] Long-term Outlook - Fixed income returns are expected to be centered around current yields, with a potential for additional returns through strategic interest rate and curve positioning [26][27] - High base treasury yields are seen as a hedge against risk assets, particularly in a balanced portfolio [28][29] - Inflation is projected to stabilize around 2% in the coming year, which would benefit fixed income investors as tariff-related inflation subsides [30]

Core Viewpoint - Interactive Brokers has established itself as a highly efficient and scalable brokerage platform, but it faces significant risks primarily due to external environmental factors rather than internal management issues [2][3]. Group 1: Interest Rate Exposure - Interactive Brokers has benefited from rising interest rates over the past two years, which has significantly increased its earnings from interest income, making it the largest earnings driver for the company [3]. - A potential decline in interest rates could compress the profit spread, leading to decreased earnings in the coming quarters, despite stable business performance [4][5]. - The company's cost structure is lean, and trading activity may increase when rates drop, but the immediate impact of falling rates could negatively affect reported profits [5][6]. Group 2: Market Cyclicality - The company's revenue is closely tied to trading activity, which fluctuates with market sentiment; during bull markets or high volatility, account activity surges, while prolonged bear markets can lead to slower growth or even stagnation [8][10]. - Although Interactive Brokers' automation and recurring revenue streams provide some cushioning against market downturns, they cannot completely mitigate the effects of reduced market activity [10]. Group 3: Regulatory Complexity - Operating in over 160 markets gives Interactive Brokers a competitive edge, but it also exposes the company to a complex array of regulatory requirements, which can increase costs or limit growth [11][12]. - Changes in regulations, such as margin lending rules or compliance mandates, could necessitate costly system upgrades or restrict client activities, highlighting the need for constant vigilance [13][14]. - The company's global scale serves as both an advantage and a challenge, as managing regulatory complexity is an ongoing requirement of its worldwide operations [14]. Group 4: Investment Considerations - Despite the risks, Interactive Brokers possesses a low-cost structure, a trusted brand, and global reach, which are expected to drive growth in the long term [15]. - Investors should remain aware of the volatility introduced by interest rates, market activity, and regulatory changes, which could impact the business from year to year [15].

Financial Performance - Total Investment Income (TII) declined to $10.6 million in 3Q 2025 from $14.3 million in 2Q 2025[6, 12] - Net Investment Income (NII) was $2.4 million, or $0.20 per share in 3Q 2025, compared to $5.9 million, or $0.51 per share in 2Q 2025[6, 14] - Net assets were $140.1 million, or $10.01 per share, compared to $140.0 million, or $12.10 per share in 2Q 2025[6, 17] Capital Activity - The company issued approximately 2.4 million shares for net proceeds of approximately $27 million in the third quarter[6] - $13 million of net proceeds year-to-date through the at-the-market (ATM) equity program launched in May 2025[8] - GECC issued $50 million of 7.75% notes due 2030 in September 2025[8] Portfolio Composition - The portfolio's fair value is $325.1 million, with a net asset value of $140.1 million[11] - Debt investments have a weighted average current yield of 11.5%[11] - 66.4% of the portfolio is in debt investments, with a fair value of $215.8 million[25] Shareholder Returns - The Board approved maintaining the distribution for the quarter ending December 31, 2025, at a rate of $0.37 per share[6] - The distribution equates to a 19.8% annualized yield on the Company's closing market price on November 3, 2025, of $7.48[6, 7] - The distribution equates to a 14.8% annualized yield on the Company's September 30, 2025, NAV of $10.01 per share[6, 7]

Financial Data and Key Metrics Changes - The loan portfolio principal totaled approximately $400 million as of September 30, 2025, with a weighted average yield to maturity of 16.5%, down from 16.8% in the previous quarter [10] - Net interest income for Q3 2025 was $13.7 million, a decrease of 5.1% from $14.4 million in Q2 2025, primarily due to non-recurring fees and the impact of a 25 basis point rate cut [13][14] - Distributable earnings per weighted average share were approximately $0.50 and $0.49 for basic and fully diluted shares, respectively, a modest decrease from $0.52 and $0.51 in the previous quarter [15] Business Line Data and Key Metrics Changes - Gross originations during the quarter were $39.5 million, with $11 million advanced to a new borrower and $20 million related to a new credit facility [10] - The portfolio consisted of 36.7% fixed-rate loans and 63.3% floating-rate loans, with only 14% exposed to further rate declines due to interest rate floors [11] Market Data and Key Metrics Changes - The company noted challenges in private credit markets, including declining interest rates and concerns over underwriting standards, which have led to trading at a discount to book value [6] - The cannabis pipeline currently stands at approximately $441 million, diversified across various growth investments and market activities [7] Company Strategy and Development Direction - The company focuses on principal protection and disciplined capital deployment in limited license jurisdictions, supporting fundamentally sound growth initiatives [7] - Management expressed confidence in the cannabis sector and the company's strategy, highlighting a robust platform to meet industry growth [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatile private credit environment but emphasized consistent execution and performance [5] - The company is optimistic about the cannabis market, particularly in states like Virginia, which is seen as an attractive market for future growth [24] Other Important Information - Total leverage was 33% of book equity as of September 30, down from 39% in the previous quarter [12] - The company expects to maintain a dividend payout ratio of 90% to 100% for the 2025 tax year, with potential special dividends if taxable income requires it [15] Q&A Session Summary Question: Discussion on the pipeline and ESOP opportunities - Management confirmed that ESOPs continue to be a significant part of the pipeline, with no significant exits other than normal turnover [19] Question: Update on maturing loans - Management is negotiating terms to extend maturing loans and expects to retain the majority of them [21] Question: Opportunities in Virginia's cannabis market - Management views Virginia as an attractive market due to its controlled licensure structure and potential for recreational market growth [24] Question: Underwriting approach and success factors - Management highlighted a focus on limited license jurisdictions and operators with diverse earnings streams as key to their underwriting success [28] Question: Lending program update for New York - The New York Social Equity Fund has opted not to draw additional capital, but the company is ready to support future deployments [56]

Core Insights - Bonds are essential for portfolios, providing reliable income and stability during stock market downturns, but they carry risks, particularly in volatile interest rate environments [1] - The iShares Core US Aggregate Bond ETF (EG) experienced a 13% loss in 2022, underperforming many high dividend yield ETFs, while shorter-term bond ETFs fared better, with losses under 5% [2] Short-Term Bond ETFs - Not all short-term bond ETFs offer the same risk-return profile; some provide low returns due to their low-risk nature, while others maximize yield while managing interest rate risk [3] - The PIMCO Enhanced Short Maturity Active ETF (MT) has an effective duration of less than six months, minimizing interest rate risk while delivering solid payouts [4][5] - The Vanguard Short-Term Treasury ETF (VGSH) is the only passive strategy among the highlighted ETFs, charging a low fee of three basis points and focusing solely on US Treasuries, thus minimizing both interest rate and credit risk [6][7] - The JP Morgan Income ETF (JPIE) charges 39 basis points and has a flexible mandate allowing it to invest in a wide range of bonds, including below investment grade, while managing interest rate and credit risk based on macroeconomic views [9][10] Performance and Strategy - The Vanguard ETF has a duration of under two years and has outperformed its peers in terms of yield and performance over long-term periods [8] - The JP Morgan ETF aims for consistent income with a volatility target of 4 to 6% per year, successfully delivering predictable payouts since its inception [11]