Core Insights - The article discusses the current investment landscape for mortgage REITs and BDCs, highlighting opportunities in floating-rate preferred shares and baby bonds due to recent market volatility and interest rate changes [20][21][33] Mortgage REITs and BDCs - A comparison of common shares from various mortgage REITs and BDCs is provided, indicating a range of performance metrics and price movements [3][4] - Many mortgage REITs have seen declines of 15% to 18% from their 52-week highs, while BDCs have experienced even larger drops [30] Preferred Shares - Floating-rate preferred shares are currently trading at discounts to call value, with potential for higher dividends as credit spreads widen [21][25] - Specific preferred shares like NLY-I and NLY-F are highlighted for their appealing yields, with NLY-I offering about 9.15% [23][24] Baby Bonds - Baby bonds are noted for their lower volatility and attractive yields to maturity, with some offering yields around 10% [26] - The maturity timelines of baby bonds are relatively short, which helps mitigate price fluctuations in response to rising Treasury yields [26] Market Sentiment - The article reflects a shift in market sentiment, with a previous wall of bearish ratings giving way to more attractive valuations in the BDC sector [33][34] - The current environment is seen as an opportunity for investors to find value in sectors that were previously overlooked due to risk aversion [35][36]

分组1 - Business Development Companies (BDCs) provide retail investors access to private credit markets while distributing the majority of their taxable income as dividends [1] - Not all companies within the BDC sector are performing equally, indicating a need for careful selection among investors [1] - The investment community is seeing a unique niche with BDCs, which may present both opportunities and challenges for investors [1] 分组2 - Denislav Iliev, an experienced day trader with over 15 years in the field, leads a team of 40 analysts focused on identifying mispriced investments in fixed-income and closed-end funds [1] - The investment group Trade With Beta offers features such as frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, and hedging strategies [1] - The service includes an actively managed portfolio and a chat room for discussions among sophisticated traders and investors [1]

分组1 - Trinity Capital Inc. (TRIN) has experienced a decline in its share price, attributed to concerns in the private credit sector affecting the broader business development company (BDC) space [3] - The Cash Builder Opportunities service focuses on high-quality dividend growth investments, aiming to provide stability and long-term wealth creation for investors [2] - The leader of Cash Builder Opportunities has 14 years of investing experience, emphasizing closed-end funds, dividend growth stocks, and option writing as strategies for income generation [3] 分组2 - The article indicates that the current market conditions have led to jitters in the private credit space, impacting the performance of some BDCs [3] - The service also offers ideas for writing options to further enhance investors' income [2]

Core Insights - Trinity Capital Inc. (TRIN) has experienced a decline in its share price, attributed to concerns in the private credit sector affecting the broader business development company (BDC) space [3] Group 1: Company Overview - Trinity Capital Inc. is involved in the business development sector, which has recently faced challenges leading to a pullback in share prices [3] - The company is part of a larger trend where jitters in the private credit market have impacted several BDCs [3] Group 2: Investment Strategy - The Cash Builder Opportunities service focuses on high-quality dividend growth investments, aiming to provide stable income and long-term wealth creation for investors [2] - The service also includes strategies for writing options to enhance income for investors [2]

分组1 - Many Business Development Companies (BDCs) have already reduced their dividends, indicating potential further declines in the sector, including additional dividend cuts [1] - Current discounts in the BDC sector suggest that there may be more challenges ahead for these companies [1] 分组2 - Roberts Berzins has over a decade of experience in financial management, focusing on helping top-tier corporates with financial strategies and large-scale financings [2] - Berzins has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [2] - His work includes developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [2]

Core Insights - Chicago Atlantic BDC, Inc. reported a net investment income of $0.36 per share for Q4 2025 and $1.45 for the full year, indicating a yield to book value of 2.7% for Q4 and 11% for the year [1] - The company is uniquely positioned in the BDC market, focusing on direct loans to privately held companies in niche markets, particularly cannabis, which provides distinct credit opportunities [2] Financial Performance - Gross investment income for Q4 totaled $14.2 million, down from $15.1 million in Q3, primarily due to one-time fees recognized in the previous quarter [19][20] - Net investment income for Q4 was $8.3 million, or $0.36 per share, compared to $9.5 million, or $0.42 per share in Q3 [20] - Net assets at the end of Q4 were $303.4 million, with a net asset value per share of $13.30, slightly up from $13.27 in Q3 [21] Investment Strategy - The company funded $31.7 million across seven new investments in Q4, with 100% being senior secured loans [22] - The investment portfolio consists of 39 companies, with 25% in non-cannabis sectors, and 73% of the debt portfolio insulated from interest rate declines [17][11] - The weighted-average yield on debt investments was 15.8%, significantly higher than the average public BDC yield of 10.8% [10] Market Position and Outlook - Chicago Atlantic BDC operates in the cannabis sector and lower middle markets, which are underserved by other capital providers, allowing for differentiated investment opportunities [7][8] - Recent M&A activity in the cannabis market has positively impacted the company's investment pipeline, which totals approximately $732 million, with $616 million in cannabis opportunities [23][25] - The company maintains a conservative leverage ratio of 0.08x, compared to the BDC average of 1.2x, providing flexibility for future investments [12] Regulatory Environment - There has been a significant shift in cannabis policy, with the current administration pursuing the reclassification of cannabis, which could enhance cash flow for borrowers and increase equity valuations in the sector [13][14] - While the company is optimistic about these developments, it continues to manage its business under the assumption that the regulatory environment may not change [15]

Financial Data and Key Metrics Changes - Net investment income for Q4 2025 was $0.36 per share, and $1.45 for the full year, indicating a yield to book value of 2.7% for Q4 and 11% for the year [4] - Gross investment income totaled $14.2 million for Q4, down from $15.1 million in Q3, primarily due to one-time fees recognized in the previous quarter [17] - Net investment income for Q4 was $8.3 million, compared to $9.5 million in Q3, reflecting a decrease due to one-time fees [18] - Net assets totaled $303.4 million at quarter end, with net asset value per share at $13.30, slightly up from $13.27 in Q3 [18] Business Line Data and Key Metrics Changes - The company funded $31.7 million across seven new investments in Q4, including four new borrowers, with 100% of these being senior secured loans [5][20] - The average credit investment size is approximately 2.4% of the debt portfolio at fair value, with 25% of the portfolio invested in non-cannabis companies [16] - The weighted average yield on debt investments was 15.8%, consistent with the previous quarter [9][16] Market Data and Key Metrics Changes - The broader BDC market faced negative sentiment, with many BDCs trading below net asset value by the end of 2025, leading to concerns about potential dividend cuts and losses in existing loan books [5][6] - The company has limited exposure to sectors under pressure, such as software, with only 3% of the portfolio exposed to this industry [10] Company Strategy and Development Direction - The company focuses on direct loans to privately held companies in niche markets, particularly the cannabis sector and lower middle market, which are often overlooked by capital providers [4][7] - The strategy emphasizes downside protection and aims to deliver attractive returns through disciplined underwriting and structuring of investments [14][23] - Recent M&A activity in the cannabis market has increased the company's pipeline for 2026, with a total of approximately $732 million in potential debt transactions [12][21] Management's Comments on Operating Environment and Future Outlook - Management noted that the recent shift in cannabis policy at the federal level could lead to increased cash flow for borrowers and higher equity valuations, although uncertainty remains until a regulatory framework is established [12][13] - The company is well-positioned to benefit from developments in the cannabis industry, despite managing the business under the assumption that the regulatory environment may not change [14] Other Important Information - The company has a low debt-to-equity ratio of 0.08x, significantly below the BDC average of 1.2x, and has no non-accruals compared to the industry average of 3.3% [11] - A dividend of $0.34 was announced, marking the sixth consecutive quarter at that rate, with total dividends for the year amounting to $1.36 per share [11] Q&A Session Summary Question: Clarification on the $732 million pipeline - The pipeline mentioned is across the entire Chicago Atlantic platform, with an increase from approximately $600 million reported last quarter [30] Question: Impact of rescheduling on borrower discussions - Rescheduling has led to increased eagerness among operators to invest in their businesses and pursue consolidation opportunities [32] Question: Activity in specific states regarding cannabis - There is increased activity in states like Virginia and ongoing consolidation in mature markets such as Ohio and Colorado [34] Question: Repayments in Q4 and their implications - The repayments observed were idiosyncratic and reflective of broader transaction activity in the market, leading to more frequent refinancing opportunities [43]

Financial Data and Key Metrics Changes - Net investment income for Q4 2025 was $0.36 per share, and $1.45 for the full year, indicating a yield to book value of 2.7% for Q4 and 11% for the year [4][18] - Gross investment income totaled $14.2 million for Q4, down from $15.1 million in Q3, primarily due to one-time fees from unscheduled repayments recognized in Q3 [17] - Net investment income for Q4 was $8.3 million, compared to $9.5 million in Q3, reflecting a decrease due to one-time fees [18] - Net assets totaled $303.4 million at quarter end, with a net asset value per share of $13.30, slightly up from $13.27 in Q3 [18] Business Line Data and Key Metrics Changes - The company funded $31.7 million across 7 new investments in Q4, including 4 new borrowers, with 100% of these being senior secured loans [5][20] - The average credit investment size was approximately 2.4% of the debt portfolio at fair value, with 25% of the portfolio invested in non-cannabis companies [16] Market Data and Key Metrics Changes - The broader BDC market faced negative sentiment, with many BDCs trading below net asset value by the end of 2025, leading to concerns about potential dividend cuts and losses in existing loan books [5] - The weighted average yield on debt investments was 15.8%, compared to 10.8% for the average public BDC [9] Company Strategy and Development Direction - The company focuses on direct loans to privately held companies in niche markets, particularly the cannabis sector and lower middle market, which are often overlooked by capital providers [4][6] - The strategy emphasizes downside protection and aims to deliver attractive returns through disciplined credit and collateral focus [8][13] - Recent M&A activity in the cannabis market has increased the company's pipeline for 2026, with a total of approximately $732 million in potential debt transactions [11][22] Management's Comments on Operating Environment and Future Outlook - Management noted that the recent shift in cannabis policy at the federal level could significantly increase cash flow for borrowers, leading to higher equity valuations and increased M&A activity [12] - The company remains cautious about the regulatory environment but believes it is well-positioned to benefit from developments in the cannabis sector [13] - Management highlighted that the current market anxiety presents opportunities for disciplined lenders, as they can capitalize on the strengths of their portfolio and liquidity [25] Other Important Information - The company has a low debt-to-equity ratio of 0.08x, significantly below the BDC average of 1.2x, and has no non-accruals compared to an industry average of 3.3% [11] - The company announced a $0.34 dividend, marking the sixth consecutive quarter at that rate, with total dividends for the year amounting to $1.36 per share [11] Q&A Session Summary Question: Clarification on the $732 million pipeline - The pipeline figure refers to the entire Chicago Atlantic Group platform, showing an increase from approximately $600 million reported last quarter [31] Question: Impact of rescheduling discussions on borrower activity - Management noted increased eagerness among larger players for consolidation and operators considering exits, which is positive for financing opportunities [33] Question: Activity in specific states regarding cannabis - There is increased activity in states like Virginia and ongoing consolidation in mature markets such as Ohio and Colorado [35] Question: Potential for increasing the credit facility - There is room to increase the revolver in 2026, along with other financing options available to BDCs [36] Question: Insights on repayments in Q4 and Q1 - The higher-than-expected repayments were idiosyncratic across several borrowers, reflecting broader transaction activity in the market [44]

Fourth Quarter 2025 Earnings Presentation Chicago Atlantic BDC, Inc. (NASDAQ: LIEN) March 19, 2026 CONFIDENTIAL | Chicago Atlantic BDC, Inc. Disclaimers and Forward-Looking Statements The information contained in this presentation should be viewed in conjunction with the earnings conference call of Chicago Atlantic BDC, Inc. (the "Company") (Nasdaq: LIEN) held on March 19, 2026, and the Company's Annual Report on Form 10-K for the year ended December 31, 2025. The information contained herein may not be use ...

Core Insights - Three ETFs are highlighted for their high yields between 12% and 14%, specifically targeting retirees seeking income [1] Group 1: ETF Summaries - **Invesco KBW High Dividend Yield Financial (KBWD)**: Yields 13.05% with a 5.39% expense ratio, primarily invests in mortgage REITs and BDCs, and has shown consistent monthly payments over 15 years [1] - **Global X Russell 2000 Covered Call (RYLD)**: Generates income by selling call options on the Russell 2000 index, with a five-year return of 14%, and recent monthly payments of $0.1584 in February 2026 [1] - **Global X S&P 500 Covered Call (XYLD)**: Utilizes a similar covered call strategy on the S&P 500, with a lower expense ratio of 0.6%, and recent monthly payments ranging from $0.2907 to $0.4005 [1][2] Group 2: Income Mechanisms and Trade-offs - **Income Generation**: KBWD focuses on high current yield through mandatory dividend distributions from mortgage REITs and BDCs, while RYLD and XYLD rely on option premiums from their respective indices [1][2] - **Market Sensitivity**: KBWD is sensitive to interest rate changes and credit conditions, while RYLD and XYLD's income fluctuates with market volatility, impacting their monthly distributions [1][2] - **Growth vs. Income**: All three ETFs are designed primarily for income rather than capital appreciation, with KBWD offering the highest yield but with higher risks associated with its concentrated investments [2]