Group 1 - The Financial Stability Board (FSB) has added Zurich Insurance, Swiss Re, and Swiss Life to its list of insurers required to prepare resolution plans in case of insolvency, increasing the total from 13 to 17 insurers [1] - The aim of these resolution plans is to better equip companies and regulators to manage potential emergencies or collapses, following the advocacy for such plans after the 2007-09 financial crisis [2] - The insurance sector initially opposed the move, arguing that the risk of contagion is lower for insurers compared to banks [3] Group 2 - The FSB set its work programme for 2026 during a plenary session in Saudi Arabia, ahead of the G20 leaders' meeting, with the US chairing the G20 next year [4] - The plenary reviewed recent regulatory changes in major economies and identified the rapid growth and complexity of private credit markets as a priority for 2025 [5] - Ongoing monitoring of crypto-assets and stablecoins was called for by the FSB, highlighting concerns regarding risks and regulatory challenges for multi-jurisdiction issuers [6]

Group 1: Market Overview - The NASDAQ experienced its second consecutive weekly loss, while the Dow and S&P ended slightly higher, masking significant volatility in the tech sector [2][5] - This week is pivotal with Nvidia earnings and two major labor market reports expected to influence market sentiment [6][18] - Bitcoin has seen a significant decline, dropping to around $95,000, raising concerns about its impact on investor sentiment in technology stocks [8][10] Group 2: Company Developments - Nvidia is anticipated to report strong earnings, with expectations of a typical 5% earnings beat, which could significantly affect market dynamics [44][45] - Berkshire Hathaway disclosed a new $4.3 billion stake in Alphabet, making it the 10th largest US stock holding, while reducing its position in Apple by 15% [18][19] - Appaloosa Management increased its stake in Nvidia by 85% while reducing holdings in other tech stocks like Alphabet and Meta [19] Group 3: Economic Indicators - European earnings have surpassed expectations with a 4.7% annual growth, as 53% of companies beat analysts' earnings forecasts [52] - The US administration has rolled back tariffs on several products, including food items, in response to rising consumer prices [57][58] - Switzerland has reached a trade deal with the US, reducing tariffs from 39% to 15% and committing to invest $200 billion in the US by 2028 [60][61]

Financial Data and Key Metrics Changes - Net investment income per share was $0.42 for Q3 2025, up from $0.34 in Q2 2025, indicating a 23.5% increase [10] - Gross investment income totaled $15.1 million for Q3 2025, compared to $13.1 million in Q2 2025 [10] - Net assets reached $302.9 million at quarter end, with net asset value per share increasing to $13.27 from $13.23 in Q2 2025 [11] Business Line Data and Key Metrics Changes - The company funded $66.7 million to 13 new investments in Q3 2025, setting a new record for originations [4][12] - 24% of the portfolio is invested in non-cannabis companies across multiple sectors, with 69% of the portfolio having floating interest rates [9] - The gross weighted average yield on the credit investment portfolio was approximately 15.8% [10] Market Data and Key Metrics Changes - The company has approximately $610 million in potential debt transactions in its pipeline, with $415 million in cannabis opportunities and $195 million in non-cannabis investments [13] - As of November 12, 2025, the company had approximately $97.8 million in liquidity, providing ample capacity for further investments [10] Company Strategy and Development Direction - The company focuses on lending to cannabis companies and the lower-middle market, which is often underserved by capital providers, creating unique credit opportunities [4] - The investment strategy emphasizes no overlap with other public BDCs, allowing for a differentiated portfolio [6][14] - The company aims to maintain a high bar for underwriting and structuring investments to ensure above-market risk-adjusted returns [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the cannabis industry, noting that it is not a monolith and varies significantly across jurisdictions [19] - The closing of the hemp-related loophole is expected to support state-regulated markets and positively impact borrowers [23][24] - The company remains disciplined in its approach to lending, focusing on building strong relationships and maintaining a broad pipeline [20] Other Important Information - The company announced a $0.34 dividend, marking the fifth consecutive quarter at that rate, which is well covered by net investment income [8] - The portfolio is under-levered, with only $11 million of debt outstanding, compared to the BDC average of 1.2 times debt to equity [8] Q&A Session Summary Question: Were the loan repayments in line with expectations, and how does the company view the cannabis industry outlook? - Management noted that while there were more repayments than expected, it did not impact deployment pace due to a strong pipeline built over time [18] - The company maintains a constructive view of the cannabis industry, recognizing its complexity across different jurisdictions [19] Question: How does the company view the potential impact of the hemp derivatives industry on cannabis players? - Management believes that closing the hemp-related loophole will support state-regulated markets and benefit borrowers, despite some negative aspects [23][24] Question: What is the company's perspective on uncertain tax liabilities and their impact on borrowers? - The company views uncertain tax liabilities as a liability that must be paid and aims to limit such liabilities in loan documents to reduce risk [27] Question: How does the company manage the risks associated with lending to smaller private companies? - Management highlighted that lending to smaller companies allows for greater negotiation power and downside protection, balancing risk with strong portfolio monitoring [29]

Market Trends & Opportunities - Bullish tech momentum saves Wall Street from losses, OpenAI's share sale boosts sector optimism [1] - Japan's equities rally continues, driven by optimism for political stability after elections and potential BOJ rate hike [1] - Private credit markets are booming, considered a $17 trillion industry, but Fitch indicates bubble-like attributes [5] - AI is expected to boost productivity, but evidence is skimpy, with U S productivity growth around 2% annualized, close to the long-term average [2] - Data centers are an interesting area for PIMCO, with big deals in the U S and Europe seen as the next frontier [38] Risks & Challenges - U S government shutdown risks revive steepener trade, potential impact on economic output is a few basis points of GDP [1] - Fiscal prudence is declining globally, with concerns about secular inflation and fiscal profligacy in the U S and Europe [2] - Japan's LDP does not have a majority in either block of parliament, raising concerns about cutting the consumption tax and increasing Japan's debt [3] - EU is considering hiking steel import tariffs to 50% to align with U S policy in response to cheaper alternatives from China [4] - Sloppy underwriting in dealmaking is a concern, with questions about collateral quality and the return of capital [48][49] Company Performance & Strategies - Tesla shares are green as investors bet a record quarter of sales will be hard to repeat [1] - Goldman Sachs is active in private credit in Asia for over 25 years, seeing renewed interest from private equity firms in Japan [6] - PIMCO is working alongside banks, taking some of their loans into private credit strategies, creating a more resilient credit market [25][26] - LG Energy will start sending South Korean workers back to the U S for essential business trips after detentions [8]

Core Viewpoint - XAI Octagon Floating Rate & Alternative Income Trust has declared its regular monthly distribution of $0.070 per common share and preferred dividends of $0.40625 per preferred share for the quarter, with no changes from previous declarations [1][3] Distribution Details - The ex-dividend date for both common shares (XFLT) and preferred shares (XFLTPRA) is October 15, 2025, with payable dates set for November 3, 2025, and October 31, 2025, respectively [1] - Common share distributions may derive from net investment income, capital gains, and/or a return of capital, with specific tax characteristics reported on Form 1099 after the end of the calendar year [1][5] Investment Strategy - The Trust aims to maintain stable monthly distributions over time despite potential variations in net investment income and capital gains [2] - The investment objective focuses on achieving attractive total returns with an emphasis on income generation across multiple stages of the credit cycle, primarily investing in floating rate credit instruments and structured credit [10] Preferred Shares Information - The 6.50% Series 2026 Term Preferred Shares dividend is based on a liquidation preference of $25.00 per share and a fixed dividend rate of 6.50% [3][6] - Preferred shareholders receive cumulative cash dividends, prioritized over common shares, and if full dividends cannot be distributed, they will be allocated on a pro rata basis [6] Tax Considerations - As a registered investment company, the Trust is subject to a 4% excise tax if it fails to distribute at least 98% of its ordinary income and 98.2% of its capital gains by the end of the calendar year [4] - The Trust's final taxable income for the current fiscal year will be determined after tax returns are filed, which may differ significantly from GAAP income [2][4] Company Background - XA Investments LLC serves as the Trust's investment adviser, managing a portfolio of opportunities within private credit markets [11] - Octagon Credit Investors, LLC acts as the investment sub-adviser, focusing on below-investment grade corporate credit investments [15]

Core Insights - Trinity Capital Inc. has increased its total commitments under its credit facility to $690 million, up from $600 million, by expanding the existing accordion feature by $90 million [1][2] - The credit facility is supported by a diversified syndicate of 13 banking partners, highlighting strong institutional confidence in the company [1][2] Company Overview - Trinity Capital Inc. is an international alternative asset manager focused on delivering consistent returns through private credit markets [2] - The company has deployed over $4.7 billion across more than 420 investments since its inception in 2008, indicating a robust investment track record [2] - Trinity Capital operates across five distinct lending verticals: Sponsor Finance, Equipment Finance, Tech Lending, Asset-Based Lending, and Life Sciences [2]

Core Insights - Trinity Capital Inc. has appointed Josh Mackey as the Director of Tech Lending, enhancing its capabilities in supporting innovative technology companies [1][2] - The company has a strong track record, having deployed over $4.7 billion across more than 420 investments since its inception in 2008 [2] Company Overview - Trinity Capital Inc. is an international alternative asset manager focused on delivering consistent returns through private credit markets [2] - The company operates across five distinct lending verticals: Sponsor Finance, Equipment Finance, Tech Lending, Asset-Based Lending, and Life Sciences [2] - Headquartered in Phoenix, Arizona, Trinity Capital has a dedicated team strategically located across the United States and Europe [2]