Financial Data and Key Metrics Changes - For the quarter ended June 30, 2025, the company reported investment income of $5.5 million or $0.81 per share, down from $6 million in the prior quarter due to decreased yield on CLO equity investments caused by market-wide loan spread compression [15] - Total expenses for the quarter were $2.4 million or $0.35 per share, resulting in net investment income of $3.1 million or $0.46 per share [15] - The net income for the quarter was $3.5 million or $0.52 per share, with recurring cash flows totaling $8 million or $1.18 per share, exceeding distributions and expenses by $0.16 per share [15][16] - As of June 30, 2025, total assets were $166.1 million and total net assets were $123.6 million, leading to a net asset value (NAV) per share of $18.19, which increased to $18.48 by July 31, 2025 [16] Business Line Data and Key Metrics Changes - The company recorded an unrealized gain on investments of $500,000 and a modest net realized loss of $70,000 during the quarter [15] - The weighted average GAAP yield on the portfolio decreased to 12.75% as of June 30, down from 15.57% as of March 31, primarily due to market-wide loan spread compression [7][8] Market Data and Key Metrics Changes - The CLO market remained resilient during a period of macro uncertainty and has since rebounded, with loan fundamentals remaining strong [6] - The trailing twelve-month payment default rate rose to approximately 1.1% as of June 30, 2025, up from 0.91% as of December 2024, but still below the post-pandemic peak of 1.75% [39] Company Strategy and Development Direction - The company emphasizes a data-driven investment approach utilizing machine learning technology and proprietary algorithms to maintain agility and seek relative value in the CLO space [8][9] - The portfolio is diversified across 52 unique CLO positions managed by 31 distinct CLO manager platforms, with no significant concentration in any single CLO [11][12] - The company plans to continue leveraging its unique infrastructure to identify mispricings and attractive investment opportunities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term resilience of the CLO asset class despite macro uncertainties, highlighting the efficient access to senior secured corporate loans [19] - The company anticipates continued refinancing and reset activity into 2025, with five minority positions already successfully reset or refinanced in Q3 [34] Other Important Information - The company distributed dividends of $0.22 per common share in April, May, June, and July, with plans for similar distributions in the following months, representing an annualized dividend yield of approximately 14.7% [17] Q&A Session Summary Question: Inquiry about recurring cash flow for comparative purposes - Management confirmed that recurring cash flow for Q1 was $7.7 million [21][24] Question: Thoughts on increasing leverage - Management stated that leverage levels will vary over time and will be utilized opportunistically based on investment opportunities and cost of leverage [22][24] Question: Composition of current pipeline regarding primary vs secondary opportunities and U.S. vs European CLO positions - Management indicated that the primary market currently presents interesting opportunities, while the secondary market has provided better relative value recently [25][29] Question: Quantification of opportunities for resets and refinancings within the portfolio - Management expects refinancing and reset activity to continue, with five minority positions already reset or refinanced in Q3 [33][34] Question: NAV reaction to the credit environment after the sell-off in April - Management noted that NAV increased post-sell-off due to strong loan fundamentals and significant refinancing activity [38][39]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported investment income of $5.5 million or $0.81 per share, down from $6 million in the prior quarter due to decreased yield on CLO equity investments caused by market-wide loan spread compression [15] - Total expenses for the quarter were $2.4 million or $0.35 per share, resulting in net investment income of $3.1 million or $0.46 per share [15] - The net income for the quarter was $3.5 million or $0.52 per share, with recurring cash flows totaling $8 million or $1.18 per share, exceeding distributions and expenses by $0.16 per share [16][18] - As of June 30, total assets were $166.1 million and total net assets were $123.6 million, leading to a net asset value (NAV) per share of $18.19, which increased to $18.48 by July 31 [17] Business Line Data and Key Metrics Changes - The weighted average GAAP yield on the portfolio decreased to 12.75% as of June 30 from 15.57% as of March 31, primarily due to market-wide loan spread compression [7][8] - The company maintained a diversified portfolio with 52 unique CLO positions managed by 31 distinct CLO manager platforms, consisting of approximately 1,800 unique loans across over 30 industry sectors [12][13] Market Data and Key Metrics Changes - The CLO market showed resilience during macroeconomic uncertainty, with loan fundamentals remaining strong and managers adapting quickly to market conditions [6] - The trailing twelve-month payment default rate rose to approximately 1.1% as of June, up from 0.91% as of December 2024, but still below the post-pandemic peak of 1.75% [40] Company Strategy and Development Direction - The company emphasized its data-driven investment approach, utilizing machine learning and proprietary algorithms to maintain a competitive edge in the CLO market [9][10] - The management plans to continue leveraging its unique infrastructure to identify mispricings and attractive investment opportunities, with a focus on both primary and secondary market opportunities [10][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term resilience of the CLO asset class despite macro uncertainties, highlighting the efficient access to senior secured corporate loans [20] - The company anticipates continued refinancing and reset activity into 2025, with five minority positions successfully reset or refinanced in Q3 [35] Other Important Information - The company distributed dividends of $0.22 per common share in April, May, June, and July, with plans to continue this distribution in August, September, and October, representing an annualized dividend yield of approximately 14.7% [18] Q&A Session Summary Question: Recurring cash flow comparison with the prior quarter - Management confirmed that recurring cash flow for Q1 was $7.7 million, similar to the current quarter's level [22][24] Question: Thoughts on increasing leverage - Management stated that leverage levels will vary over time, and they evaluate investment opportunities daily, considering the cost of leverage compared to expected returns [23][24] Question: Composition of current pipeline in terms of primary vs secondary opportunities and U.S. vs European CLO positions - Management indicated that the relative value of opportunities drives their decisions, noting interesting opportunities in the primary market while the secondary market has provided better relative value recently [25][28] Question: Quantifying opportunities for resets and refinancings - Management expects refinancing and reset activity to continue, with five minority positions successfully reset or refinanced in Q3 [35] Question: NAV reaction to the credit environment post-sell off - Management noted that NAV increased post-sell off due to strong loan technicals and significant refinancing activity, with credit fundamentals remaining stable [39]

Core Viewpoint - Volta Finance Limited reported a net performance of +2.48% for July 2025, contributing to a total net performance of +13.9% for the financial year from August 2024 to July 2025, outperforming US High Yield and Euro High Yield indices which returned +8.6% and +8.1% respectively [4][5][6]. Performance and Portfolio Activity - The company achieved a net performance of +2.48% in July, including a dividend payment of 15.5 cents per share [4]. - The financial year net performance from August 2024 to July 2025 stands at +13.9% [4]. - The US High Yield market returned +8.6% and Euro High Yield returned +8.1% during the same period [4]. - Economic indicators showed a mixed but generally positive outlook, with robust labor market conditions and strong corporate earnings, particularly in the technology sector [5][6]. - Inflationary pressures are evident, with the core Personal Consumption Expenditures (PCE) index rising 2.8% year-over-year [6]. - Volta's cash flow generation remained stable at €28 million equivalent in interest and coupons over the last six months, representing close to 21% of July's NAV on an annualized basis [8]. Market Conditions - July saw strong market performance driven by positive trade negotiations and resilient economic indicators, although caution remained due to ongoing tariff negotiations with China [5]. - Loan and CLO issuance remained active despite low M&A volumes, with US loan market indices recording a performance increase of +0.88% and European market indices increasing by +0.55% [7]. - Volta received early redemptions from CLO debts (approximately €5 million) and CLO equities (approximately €2 million equivalent) [8]. Portfolio Composition - As of the end of July 2025, Volta's NAV was €274.2 million, equating to €7.49 per share, an increase of 36 cents from July 2024 [10]. - CLO Equity tranches returned +5.2% while CLO Debt tranches returned +0.6% during the month [9]. - Cash stood at 17% at the end of July, providing the company with liquidity to capitalize on attractive entry points in the market [8].

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]

Financial Data and Key Metrics Changes - GAAP net income for the quarter was $283.9 million, or $0.53 per diluted share, with a return on equity of 17% [18] - Earnings available for distribution were $291.1 million, or $0.54 per diluted share, reflecting an 18% return on equity [18] - Book value increased to $6.7 billion, or $12.71 per share, up from $12.39 in the prior quarter [19] - The company ended the quarter with a record cash and liquidity amount of $2.1 billion [19] Business Line Data and Key Metrics Changes - Genesis Capital achieved a record quarter of production, with origination more than doubling since its acquisition in 2022 [6][10] - NewRez, the mortgage company, reported a 38% increase in funded volume, reaching $16 billion [36] - The servicing portfolio for NewRez is now $864 billion, with a 19% return on equity for the quarter [36][25] - Rhythm Asset Management saw an increase of $3.5 billion in assets under management (AUM), totaling $36 billion [24] Market Data and Key Metrics Changes - The company noted a robust pipeline for mergers and acquisitions, focusing on scaling up credit and origination business lines [10] - The asset-based finance (ABF) market is highlighted as a key area of growth, with the company controlling both origination and servicing [7][8] Company Strategy and Development Direction - The company aims to grow its asset management platform and differentiate itself through performance and trust with investors [8][10] - There is a focus on opportunistic acquisitions and scaling up the credit business, with a desire to enter the insurance market [51][52] - The company is exploring the potential for a separate listing for NewRez but is currently focused on growing the business [45][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macroeconomic environment, anticipating one or two rate cuts this year [26] - There is a belief that policy uncertainty is declining, which could benefit investment products [27] - The company is cautious about credit markets but sees opportunities in the non-QM space and direct lending [90] Other Important Information - The company has paid out over $6 billion in dividends since inception, implying a stock price of about $25 based on historical payouts [12] - The company is focused on maintaining a balance between funding through its balance sheet and third-party capital [95][96] Q&A Session Summary Question: Any updated thoughts on Nuurez and unlocking value? - Management indicated that they are focused on growing Nuurez and enhancing earnings before considering a separate listing [45][46] Question: How will changes in the mortgage market impact NewRez's strategy? - Management noted significant growth in the non-QM business and plans to continue expanding origination channels [60][61] Question: What are the most logical ways to optimize Rhythm's corporate structure? - Management is evaluating the merits of a C Corp structure and the need for scale in the REIT business [66][67] Question: How does the partnership at Genesis support capital allocation? - Management stated that capital can be allocated flexibly across segments to generate the best returns for shareholders [73][74] Question: What type of insurance acquisitions are being considered? - Management is looking at broader insurance opportunities, including P&C and life insurance, to complement their asset management capabilities [88][89]

Performance Overview - In June 2025, Volta Finance achieved a net performance of +0.4%, bringing the cumulative performance from August 2024 to +11.2% [4] - The portfolio's CLO Debt and CLO Equity assets delivered positive returns amid a favorable credit market environment following previous volatility [4] Market Context - June saw a "risk on" environment with strong gains in U.S. equity markets and a significant weakening of the US Dollar, driven by easing trade tensions and moderating inflation [5] - The Federal Reserve maintained interest rates at 4.25%-4.50% during their June meeting, despite inflation nearing target levels [5] - In Europe, major indices ended the month flat, with the ECB cutting rates by 25 basis points and signaling a likely pause in future cuts as eurozone inflation returned to 2% [5] Credit Market Activity - Credit markets remained resilient, with the European High Yield index (Xover) settling at 283bps, down from 300bps, indicating a tight market [7] - US High Yield returned +1.9% for the month, while Euro Loans and US Loans returned +0.13% and +0.80%, respectively [7] Portfolio Composition - The median CCC assets exposure in CLO portfolios was stable at 4.5% in the US, slightly above the 4.1% exposure in European CLOs [8] - Loan maturity walls are transitioning towards 2030 and beyond, with significant refinancing deadlines in 2028 and 2031 in the US [8] Investment Activity - The month was active with CLO debt redemptions of €4.8 million, and the company replaced risk to maintain overall exposure [9] - Cash stood at 11% at the end of June, with cashflow generation slightly up at €28.3 million over the last six months, representing close to 21% of June's NAV on an annualized basis [9] Performance of Asset Classes - Volta's CLO Equity tranches returned +1.6%, while CLO Debt tranches returned +1.0% [10] - The EUR/USD exchange rate move to 1.18 impacted long dollar exposure performance by 0.4% [10] Net Asset Value - As of the end of June 2025, Volta's NAV was €273.0 million, equating to €7.46 per share [10]

Financial Data and Key Metrics Changes - For calendar Q1, the company reported a net loss of $0.23 per share and adjusted distributable earnings of $0.26 per share [9] - The overall net interest margin increased by 20 basis points to 5.27, supported by a growing capital allocation to CLOs [9] - The economic return for the quarter was negative 3.2%, with book value per share at $6.08 [10][11] Business Line Data and Key Metrics Changes - The CLO portfolio increased by 46% to $250 million, while capital allocated to CLOs expanded to 81% from 72% at the end of the previous quarter [11] - The agency RMBS holdings decreased slightly to $504 million from $512 million at the end of the previous quarter [11] - The portfolio P&L by strategy showed a negative $0.24 per share from CLOs and a positive $0.08 from agency [10] Market Data and Key Metrics Changes - The market experienced strong performance in January and February, followed by turbulence in March due to fears of tariffs, slowing growth, and persistent inflation [7] - Credit spreads widened significantly in March, impacting CLO mezzanine debt and equity tranches, leading to meaningful price declines [7][8] - Recent tariff de-escalations have led to credit spreads and prices reversing course in May, recovering a significant portion of the declines [8] Company Strategy and Development Direction - The company successfully completed its conversion to a registered closed-end fund and changed its fiscal calendar to begin on April 1 [4][5] - The strategy focuses on increasing the CLO portfolio while maintaining liquidity and flexibility in response to market conditions [22][29] - The company plans to add corporate debt to its liability structure later this year, which should be accretive to net investment income [29] Management's Comments on Operating Environment and Future Outlook - Management noted that while there were mark-to-market losses in calendar Q1, most price declines were driven by credit spread widening rather than realized credit losses [22] - The company is optimistic about deploying capital in a compelling market and believes it is well-positioned to drive strong earnings moving forward [29] - Management expects to be slightly short on dividend coverage in the second quarter but is on track for recovery in the third quarter [56] Other Important Information - The company disposed of all remaining mortgage positions shortly after April 1, which allowed for increased liquidity and buying power [8][25] - As of April 30, approximately 18.8% of the total portfolio, or about $59 million, was in cash and cash equivalents, providing ample dry powder for deployment [27] Q&A Session Summary Question: How does the yield on newly acquired CLOs compare to the previous $250 million? - Management indicated that the weighted average yield varied from slightly wider to potentially hundreds of basis points back, depending on the type of assets purchased [34] Question: Is there still dry powder available for deployment? - Management confirmed that there is still good dry powder available and that cash reserves are maintained to allow for increased portfolio size [37][39] Question: What are the latest thoughts on the ADE trajectory? - Management stated that they might be slightly short on covering the dividend in the second quarter but are on track for recovery in the third quarter [56]

Core Insights - Mitsubishi UFJ Financial Group (MUFG) has appointed John Clements as Managing Director, Head of CLO, to lead origination, structuring, and syndication efforts across various CLO platforms [1][2] - Ann Tran, Managing Director, emphasized MUFG's leadership in the CLO space and expressed confidence in continued growth with John's expertise [2] Company Overview - MUFG is one of the world's leading financial groups, headquartered in Tokyo, with over 360 years of history and approximately 2,100 locations in more than 50 countries [3] - The group employs nearly 160,000 individuals and offers a wide range of services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing [3] - MUFG aims to be "the world's most trusted financial group" by responding flexibly to customer needs and fostering sustainable growth [3] Americas Operations - MUFG's operations in the Americas are organized under MUFG Bank, Ltd. and focus on Global Corporate and Investment Banking, Japanese Corporate Banking, and Global Markets [4] - The institution is recognized as one of the largest internationally-headquartered financial institutions in the Americas [4]