Financial Data and Key Metrics Changes - For Q3 2025, the company reported recurring cash flows of $77 million or $0.59 per share, down from $85 million or $0.69 per share in Q2 2025 [5] - The net investment income less realized losses was $21 million or $0.16 per share, compared to $0.16 per share in the previous quarter and $0.23 per share in Q3 2024 [10] - The company's NAV as of September 30 was $7 per share, a decrease of 4.2% from $7.31 per share as of June 30 [5] - GAAP net income for Q3 2025 was $16 million or $0.12 per share, down from $0.47 per share in the previous quarter [10] Business Line Data and Key Metrics Changes - The company deployed nearly $200 million into new investments during the quarter, focusing on both primary and secondary markets [4][12] - The weighted average remaining reinvestment period (WARP) ended at 3.4 years, which is 26% above the market average of 2.7 years [6] - The company completed 16 refinancings and 11 resets during the quarter, enhancing the earning power of its CLO equity portfolio [4] Market Data and Key Metrics Changes - The S&P UBS Leveraged Loan Index returned 1.6% for Q3 2025, with a trailing 12-month default rate of 1.5%, up from 1.1% as of June 30 [15] - The CLO market saw $53 billion in volume during the quarter, with significant increases in reset and refinancing activity [17] - The company's CCC-rated exposures within its CLO equity portfolio stood at 4.6%, lower than the broader market average of 4.8% [18] Company Strategy and Development Direction - The company is focused on portfolio rotation and optimization to enhance cash flows and earning power [6] - Management highlighted a robust pipeline of additional resets and refinancings planned into 2026 [4] - The company aims to maintain a competitive advantage through its attractive cost of capital and proactive management of its CLO equity investments [8] Management's Comments on Operating Environment and Future Outlook - Management noted that loan fundamentals remain strong despite recent pressures from loan repricings [15] - The company expects to see a return of repricing activity as 42% of loans are trading above par [7] - Management expressed optimism about the near-term investment pipeline, citing stabilizing market conditions [19] Other Important Information - The company utilized its at-the-market program, issuing $26 million of common stock at a premium to NAV [7] - The board declared regular monthly distributions of $0.14 per share for the first quarter of 2026 [8] - The company recorded a comprehensive loss of $2.5 million for Q3 2025 [11] Q&A Session Summary Question: Can you provide more color on the timeline for portfolio resets and refinancings? - Management anticipates actions on another 20% of the portfolio over the next one to two quarters, depending on market conditions [22] Question: What are the near-term investment opportunities in the primary and secondary markets? - The primary market remains active with plenty of issuance opportunities, while the secondary market has selective opportunities for investment [25] Question: How have loan spreads changed in October compared to September? - Loan spread compression has slowed, with the weighted average spread on loans down approximately 50 basis points over the last year [30] Question: What factors drove the decline in recurring cash flows? - The principal factor was spread compression, which fell by about eight basis points this quarter [38] Question: Is there a plan to refinance the Series F preferreds soon? - The call date for the Series F preferreds is January 18, 2026, and management is considering refinancing options [44] Question: How does the decline in NAV relate to market pricing and spreads? - The largest component of the NAV decline was the excess of distributions over net investment income [56]

An Apollo private credit fund deemed a loan to Medallia worth 77 cents on the dollar, a level typically considered distressed https://t.co/veXP1JhRxt ...

Core Insights - The relationship between private credit and liquid credit is evolving into a symbiotic coexistence, with both markets complementing each other rather than competing [2][3] - Private credit has grown to over $1.7 trillion in assets, becoming a mainstream asset class and a significant part of institutional portfolios [3][9] - The interplay between private and liquid credit markets enhances the range of credit solutions available to borrowers, supporting their financial health [3][10] Market Dynamics - The rise of private credit was accelerated by the 2008 financial crisis and further solidified during the Covid-19 pandemic, as traditional lending sources retreated [6][9] - In 2022, private lenders provided essential financing when liquid credit markets were subdued, demonstrating the flexibility and responsiveness of private credit [11][12] - As of 2024, refinancing activity has reached parity between direct lending and broadly syndicated loans, with approximately $25 billion in loans moving in each direction [12][13] Investment Proposition - Investors can optimize their portfolios by blending private and liquid credit, which allows for a balance of yield, liquidity, and volatility [15][20] - Liquid credit offers better tradability and pricing, while private credit provides stability and attractive yield premiums, especially for smaller or more leveraged businesses [18][20] - The diversification benefits of combining these two markets allow investors to access a broader range of company sizes, sectors, and geographies [21][25] Future Outlook - The demand for financing is expected to remain high, driven by large-cap M&A activity and increasing capital expenditure needs across various sectors [24][25] - Both private and liquid credit markets are anticipated to play crucial roles in meeting these financing requirements, potentially collaborating on larger deals [24][25] - Investors are encouraged to explore less traditional areas such as asset-backed finance and liquid structured credit as part of their diversification strategy [25][27]

Core Viewpoint - The article highlights the release of 13 typical cases by the Beijing People's Procuratorate, focusing on the effective prosecution of financial crimes, particularly those involving virtual currencies and illegal foreign exchange operations [1][3]. Group 1: Financial Crime Cases - A significant case involves a group using virtual currencies to illegally conduct foreign exchange transactions, with total illegal operations exceeding 1.18 billion RMB [4][6]. - The group, consisting of five members, was found to have converted received RMB into Tether (USDT) to facilitate cross-border fund transfers, effectively engaging in illegal foreign exchange activities [5][6]. Group 2: Legal Proceedings and Outcomes - On December 25, 2024, the Beijing Haidian District People's Procuratorate prosecuted the five individuals for illegal business operations, leading to prison sentences ranging from two to four years [6]. - All defendants acknowledged their guilt and did not appeal the verdict, which has since become effective [6]. Group 3: Prosecution Strategies - The Beijing Procuratorate optimized its case handling approach by enhancing collaboration with law enforcement and developing a comprehensive evidence system to tackle the challenges posed by the covert nature of virtual currency transactions [8][10]. - A strategy was implemented to ensure the legality and authenticity of evidence from overseas virtual currency platforms, addressing the complexities of cross-border financial crimes [10]. Group 4: Evidence Collection and Analysis - The prosecution adopted a "technical empowerment + standardized review" approach to construct a solid evidence chain, ensuring thorough examination of financial data and transaction processes [10]. - By analyzing the entire transaction chain from fund reception to virtual currency conversion and cross-border transfer, the prosecution was able to accurately determine the criminal amounts for each defendant, establishing a robust evidence base for sentencing [10][11].

Core Insights - UPAY Inc.'s South African subsidiary, ACPAS, is sponsoring the MicroFinance South Africa (MFSA) Annual General Meeting and Conference on October 22, 2025, marking a significant event in the microfinance sector [1][3] - The MFSA is rebranding to CASA, the Credit Association of South Africa, reflecting its nearly three-decade commitment to responsible credit practices [2][5] - ACPAS is participating as a Legacy Partner in the transition to CASA, emphasizing its dedication to supporting the microfinance and credit sectors [3][4] Company Overview - ACPAS is a leading Loan Management Software provider in South Africa, focusing on automation solutions for loan origination, management, and compliance [6] - UPAY Inc. is a publicly traded holding company in the fintech industry, investing in innovative technologies to enhance financial software platforms [7] Industry Context - CASA, formerly MFSA, represents over 1,800 registered credit providers and advocates for ethical lending, consumer protection, and industry advancement [5] - The transition to CASA signifies growth and renewal within the credit industry, aiming to strengthen South Africa's credit ecosystem through collaboration and technological advancement [4][5]

The private credit industry’s claims of market-beating, stress-free returns are “illusory,” a group of academics say, adding fuel to the fire in a week that already saw executives fend off broadsides from the likes of Jamie Dimon https://t.co/5E9HRZs35k ...

Investment Rating - The report indicates a positive outlook on the corporate credit cycle, suggesting a shift in momentum with increased M&A and LBO activity, although it starts from a benign point [5][9]. Core Insights - US consumer spending growth is slowing but remains solid, supported by elevated net worth and asset growth outpacing liabilities [43]. - The credit cycle is gaining momentum with busy issuance in both investment-grade (IG) and high-yield (HY) markets, with September IG issuance reaching $227 billion, significantly above seasonal averages [6][43]. - Delinquencies are rising in subprime credit while stabilizing in prime credit, indicating a bifurcation in credit quality [43][23]. Summary by Sections Corporate Credit - The credit cycle is moving up a gear with significant M&A and LBO announcements, although current activity levels are below historical trends [5][9]. - High-yield issuance in September exceeded $55 billion, marking it as the third-largest month on record [7][8]. - Defaults remain elevated despite tighter spreads, with a trailing 12-month default rate for high-yield loans at 4.2% [12][11]. Securitized Credit - There is a notable divergence in delinquency rates between prime and subprime segments, with prime delinquencies stabilizing while subprime delinquencies are on the rise [43][23]. - Transition rates do not indicate further deterioration in credit quality, suggesting a potential stabilization in the market [28]. Economic Overview - Real personal consumption expenditure growth is slowing, but remains robust, particularly among high-income cohorts whose net worth is significantly higher [34][43]. - Labor income growth has decelerated, which may impact real spending in the future [38][43].

Core Insights - The article emphasizes that a high credit score does not equate to financial success, as it primarily reflects an individual's relationship with debt rather than their overall financial health [2][3]. Group 1: Credit Score Perspective - The FICO score is described as an "I love debt" score, indicating that it is not a true measure of financial well-being [2]. - Key components of the FICO score include: 35% based on payment history, 30% on debt level, 15% on length of time in debt, and the remainder on type and newness of debt [2]. Group 2: Millionaire Insights - A significant study revealed that none of the 10,167 millionaires attributed their wealth to airline miles, highlighting a disconnect between common financial myths and reality [4]. - Among millionaires, 82% reported never having taken out a car loan or lease, with many of the remaining 18% considering it a major financial mistake [4]. Group 3: Financial Behavior - The article suggests that to achieve millionaire status, individuals should adopt behaviors typical of millionaires, rather than relying on credit or debt [5].

Group 1 - The public markets are near all-time targets, with spreads compressed and more aggressive terms observed in private credit investments, indicating a supply-demand imbalance [1][2] - Macro data suggests an easing cycle, indicating that while the economy is weak, it is not excessively so, providing a foundation for continued investment [2][3] - The U.S. economy has shown remarkable resilience, with growth also observed in Europe, the Middle East, and Japan, supporting the case for investment [3] Group 2 - Despite tight credit conditions, macro fundamentals suggest that credit investments remain attractive, particularly in the context of energy transition and AI [4] - Investment opportunities in energy infrastructure are compelling due to the high demand for power from data centers, which are contracted with investment-grade counterparties [4][5] - The structures of these investments are highly resilient, making them a safer option for credit investors [5]

Hey Scott. Yeah, it's the private credit side of the business that has seen a real sentiment shift. Apollo, Aries, Blue Owl, and KKR seeing significant declines week to date.While those more exposed to private equity think TPG and Carile, they've held up okay. Two high-profile bankruptcies in the auto finance space leading to a broad-based selloff in the publicly traded alternatives firms. and First Brands bankruptcies, each within the last few weeks, have shed a new light on the risks of overlever and subp ...