Core Insights - The company faced challenging market conditions in 2025, with a GAAP return on common equity of negative 14.6%, slightly better than the market average of negative 15% [5][2] - The company's NAV decreased from $7.00 per share on September 30 to $5.70 per share by year-end [5] - The company actively managed its CLO equity portfolio, completing 34 resets and 27 refinancings throughout 2025, which helped mitigate some of the negative impacts from market conditions [7][10] Financial Performance - The company recorded a net investment income (NII) of $0.23 per share, offset by realized losses of $0.49 per share, resulting in a total NII less realized losses of negative $0.26 per share for 2025 [17] - Total cash distributions amounted to $1.68 per common share during 2025, with a new monthly distribution rate set at $0.06 per share for 2026 [6][15] - The company reported a comprehensive loss attributable to common stock of $110 million, or $0.84 per share, for the fourth quarter [18] CLO Market Dynamics - The loan market saw strong demand, with total loan repayments reaching $294 billion, representing approximately 19% of the market in 2025 [22] - The trailing twelve-month default rate decreased from 1.5% in September to 1.2% by year-end, remaining below the long-term average of 2.6% [23] - CLO new issuance volumes rose to $209 billion for 2025, surpassing the previous year's record [24] Portfolio Management - The company selectively increased its exposure to credit assets beyond CLO equity, with non-CLO investments making up approximately 26% of the total investment portfolio by year-end [8][10] - The company achieved an average of 42 basis points in CLO debt cost savings across its portfolio due to its active reset and refinancing activities [7] - The weighted average remaining reinvestment period (WARP) of the portfolio remained stable at 3.3 years, reflecting the company's strategic investment decisions [7] Strategic Initiatives - The company launched a joint venture focused on regulatory capital relief transactions and invested over $40 million in its U.S. CLO collateral management platform [11][12] - The company plans to continue optimizing its capital structure, including the redemption of high-cost preferred stock and the issuance of lower-cost perpetual preferred stock [13][14] - The board is supportive of gradually increasing the allocation away from CLO equity as attractive opportunities arise in other credit asset classes [39][40]

Financial Data and Key Metrics Changes - The company generated a GAAP return on common equity of negative 14.6% during 2025, which is slightly better than the market-wide assessment by Nomura Research, which estimated a median CLO equity return of negative 15% for the same period [6][17] - As of December 31, the company's NAV was $5.70 per share, down from $7 per share on September 30 [7] - The fourth quarter of 2025 saw a net investment income (NII) less realized losses of -$0.26 per share, compared to -$0.16 per share in the third quarter [16] Business Line Data and Key Metrics Changes - The company completed 10 resets and 3 refinancings of its CLOs in the fourth quarter alone, participating in 34 resets and 27 refinancings throughout 2025 [8] - Recurring cash flows from the portfolio increased to $80 million, or $0.61 per share, up from $77 million or $0.59 per share in the prior quarter [7] - The non-CLO portion of the investment portfolio was approximately 26% at year-end, reflecting a strategic shift towards credit assets beyond CLO equity [9] Market Data and Key Metrics Changes - The trailing twelve-month default rate decreased from 1.5% in September to 1.2% as of December 31, significantly below the long-term average of 2.6% [22] - The S&P UBS Leveraged Loan Index posted a 1.2% return for the fourth quarter and a 5.9% return for the full year 2025 [21] - CLO new issuance volumes rose slightly to $55 billion in the fourth quarter, bringing the total for 2025 to $209 billion, surpassing the previous year's record [22] Company Strategy and Development Direction - The company is focusing on increasing exposure to credit assets beyond CLO equity, reflecting a strategic decision to maximize total return for shareholders [10] - A new joint venture was launched to invest in regulatory capital relief transactions, with plans to add more JVs over time [12] - The company aims to retain more capital for investments with attractive risk-adjusted returns, supporting sustained cash flow and long-term total return [15] Management's Comments on Operating Environment and Future Outlook - Management noted that while defaults remain below long-term averages, spread compression in the loan market and negative sentiment towards credit have impacted financial performance [4] - The outlook for 2026 suggests continued opportunities for capital deployment in both CLO equity and other credit asset classes, with expectations of a stable or growing NAV over time [15][25] - Management anticipates that the loan market fundamentals will remain stable, despite potential volatility due to external factors [21] Other Important Information - The company announced a $100 million common stock repurchase program to buy stock in the open market if it trades at a material discount to NAV [14] - The company redeemed its 8% Series F Term Preferred Stock, which was the highest cost of financing, and proactively repurchased $9 million of other securities at discounts [12][13] Q&A Session Summary Question: Impact of captive CLO equity funds on fee structures - Management acknowledged that CLOs without internal management fees could outperform those with fees, but noted that spread compression affects all funds [30][32] Question: Outlook for resets and refinancings in 2026 - Management indicated that predicting the exact number of resets and refinancings is challenging, as it depends on market conditions, particularly AAA spreads [61] Question: Strategy for stock repurchase program - Management stated that decisions on stock repurchases will consider share price, leverage ratios, and investment opportunities, balancing between repurchases and capital deployment [50][52] Question: Trends in credit quality and expenses - Management expects credit quality trends to mirror those of the previous year, with no significant uptick in credit expenses anticipated [45][46]

Oxford Lane Capital logo Oxford Lane Capital (NASDAQ:OXLC) reported third fiscal quarter results that reflected lower income, a sharp decline in net asset value, and sizable unrealized depreciation tied to broader market conditions affecting CLOs and leveraged loans. Management also announced a reduction in the monthly common distribution, citing a desire to retain additional capital for investment opportunities and to support net asset value over time. Quarterly results and portfolio marks CEO Jonatha ...

Financial Data and Key Metrics Changes - For Q3 2025, the company reported invested income of $5.4 million or $0.80 per share, a slight decrease from $5.5 million in the previous quarter [15] - Total expenses remained stable at $2.4 million or $0.35 per share, consistent with the prior quarter [15] - The company recorded net unrealized losses on investments of $6.9 million or $1.02 per share, alongside a modest net realized loss of $424,000, resulting in a net loss of $4.3 million or $0.64 per share [15] - Recurring cash flows from the CLO portfolio totaled $8.7 million or $1.28 per share, an increase from $8 million or $1.18 per share in the previous quarter [15][16] - Total assets as of September 30, 2025, were $157.5 million, down from $166.1 million as of June 30, 2025 [16] Business Line Data and Key Metrics Changes - The portfolio's average junior OC cushion stands at 4.5%, with deals exposed to First Brands having a slightly higher cushion of 4.6% [6] - The weighted average gap yield of the portfolio increased from 12.75% to 13.07% due to refinancing activities [10] Market Data and Key Metrics Changes - The broader CLO equity market faced headwinds, primarily due to spread tightening in the broadly syndicated loans market [5] - The company noted a significant uptick in leveraged buyout (LBO) activity, with approximately $200 billion in deals announced during the first three quarters of 2025, surpassing the $164 billion recorded for all of 2024 [9] Company Strategy and Development Direction - The company remains focused on disciplined portfolio management and long-term total return, viewing market dislocations as opportunities [5][9] - The investment platform combines machine learning and natural language processing with traditional credit analysis, providing a competitive advantage in sourcing opportunities [11][12] - The company plans to utilize leverage opportunistically when attractive investment opportunities arise [16] Management's Comments on Operating Environment and Future Outlook - Management views the current environment as presenting opportunities in the CLO market, with expectations of a constructive outlook for CLO equity performance in a gradually easing monetary environment [10][19] - The company believes that CLOs provide an efficient way to access senior secured corporate loans and can offer an attractive risk-return profile across various credit cycles [19] Other Important Information - The company has started to tap its at-the-market equity issuance program, issuing approximately 26,600 shares for net proceeds of approximately $0.4 million [17] - Dividends of $0.22 per common share were distributed in July, August, September, and October, with plans for the same in November, December, and January, representing an annualized dividend yield of approximately 16% [17] Q&A Session Summary Question: Insights on the primary CLO market and investment opportunities - Management indicated that arbitrage returns in the primary CLO equity market are currently not adequate for large-scale participation, with more attractive opportunities in the secondary CLO equity markets [21][22][23] Question: Impact of resets and refinancings on expected yields - Management preferred not to comment on intra-quarter activities but noted that previous resets and refinancings contributed significantly to yield improvements [24][25] Question: Mix of opportunities between U.S. and European CLOs - The majority of the portfolio is focused on the U.S. CLO market, with occasional consideration of European CLOs, particularly single B positions that can provide stronger NAV protection [29] Question: Future ATM issuance versus share repurchase - Management is evaluating both ATM issuance and share repurchase options but considers it too early to prioritize one over the other [31] Question: Potential portfolio growth and leverage management - Management stated that portfolio growth will depend on the attractiveness of leverage costs and will continue to monitor conditions as they evolve [32][33]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported invested income of $5.4 million or $0.80 per share, a slight decrease from $5.5 million in the prior quarter [14] - Total expenses remained stable at $2.4 million or $0.35 per share, consistent with the previous quarter [14] - The net unrealized losses on investments were $6.9 million or $1.02 per share, alongside a modest net realized loss of $424,000, leading to a net loss of $4.3 million or $0.64 per share [14] - Recurring cash flows from the CLO portfolio totaled $8.7 million or $1.28 per share, exceeding distributions and expenses by $0.26 per share, up from $8 million or $1.18 per share in the prior quarter [14][15] Business Line Data and Key Metrics Changes - The portfolio's average junior OC cushion stands at 4.5%, with deals exposed to First Brands having a slightly higher cushion of 4.6% [6] - The weighted average gap yield of the portfolio increased from 12.75% to 13.07% due to refinancing activities [10] Market Data and Key Metrics Changes - The broader CLO equity market faced headwinds, primarily due to spread tightening in the broadly syndicated loans market [5] - The company noted a significant uptick in leveraged buyout (LBO) activity, with approximately $200 billion in deals announced during the first three quarters of 2025, surpassing the $164 billion recorded for all of 2024 [9] Company Strategy and Development Direction - The company remains focused on disciplined portfolio management and long-term total return, viewing market dislocations as opportunities [5][10] - The investment platform combines machine learning and natural language processing with traditional credit analysis, providing a competitive advantage in sourcing opportunities and managing the portfolio [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive outlook for CLO equity performance in a gradually easing monetary environment, anticipating that lower rates will stimulate LBO activity and enhance portfolio diversification [9][19] - The company believes that CLOs provide an efficient way to access senior secured corporate loans and can offer an attractive risk-return profile across various credit cycles [19] Other Important Information - As of September 30, 2025, total assets were $157.5 million, and total net assets were $114.9 million, resulting in a net asset value per share of $16.89 [15][16] - The company has started to utilize its at-the-market equity issuance program, issuing approximately 26,600 shares for net proceeds of approximately $0.4 million [16][17] Q&A Session Summary Question: Insights on the primary CLO market and investment opportunities - Management indicated that current arbitrage returns in the primary CLO equity market are not adequate for large-scale participation, with expected returns in the 10%-12% range, while secondary CLO markets offer more attractive opportunities [21][22] Question: Impact of resets and refinancings on expected yields - Management preferred not to comment on intra-quarter activities but confirmed that recent resets and refinancings contributed significantly to yield improvements [23][24] Question: Mix of opportunities between U.S. and European CLOs - The majority of the portfolio is focused on the U.S. CLO market, with occasional consideration of European CLOs, particularly single B positions that can provide stronger NAV protection [29] Question: Future ATM issuance versus share repurchase - Management is evaluating both ATM issuance and share repurchase options but considers it too early to prioritize one over the other [30] Question: Potential portfolio growth and leverage management - Management stated that leverage levels will be modulated based on market conditions, with ongoing monitoring of opportunities to increase leverage when costs are attractive [31][32]

Financial Data and Key Metrics Changes - The company reported a net investment income (NII) of $0.26 per share, consisting of $0.39 per share of net investment income offset by $0.13 of realized capital losses [4] - Recurring cash flows totaled $17 million or $0.67 per share, consistent with the prior quarter [4] - NAV increased to $14.21 per share as of September 30, up from $14.08 per share at the end of June [5] - GAAP return on equity for the third quarter was 3% [5] - The company recorded GAAP net income of $11.43 per share for the third quarter, with investment income of $16 million and unrealized gains of $5 million [16][17] Business Line Data and Key Metrics Changes - The company deployed $60 million into new investments during the quarter, with a weighted average effective yield of 16.6% on new CLO equity purchased [5] - Three resets and four refinancings of CLO equity positions were completed, lowering debt costs and extending reinvestment periods [6] - The company repurchased $21 million of common stock at an average discount to NAV of 8.3%, resulting in NAV accretion of $0.07 per share [7][8] Market Data and Key Metrics Changes - The S&P UBS Leveraged Loan Index returned 1.6% for the quarter, with a trailing 12-month default rate of 1.5%, up from 1.1% as of June 30 [11] - CLO new issuance volume was $53 billion during the quarter, slightly up from $51 billion in the second quarter [13] - The company had $52 million of cash and undrawn revolver capacity available for investment as of September 30 [14] Company Strategy and Development Direction - The company aims to capitalize on opportunities in the CLO investing market, leveraging its scale and experience [4] - The board increased the common share repurchase authorization to $60 million, reflecting a commitment to enhancing shareholder value [8] - The company plans to continue aggressive share buybacks when shares are trading at a discount to NAV [8] Management's Comments on Operating Environment and Future Outlook - Management noted that the Fed's rate cuts have impacted earnings power, leading to a reduction in monthly distributions to $0.11 per share for the first quarter of 2026 [9] - The company believes junior CLO debt continues to offer compelling risk-adjusted returns compared to comparably rated corporates [9] - Management expressed optimism about credit quality, citing positive revenue and EBITDA trends among below investment-grade companies [24][26] Other Important Information - The company announced the scheduled redemption of 100% of its 7.75% Series B Term Preferred Stock to optimize capital structure [6] - As of October month-end, the company's NAV was estimated to be between $13.94 and $14.04 per share [18] Q&A Session Summary Question: Future expectations for credit quality given recent revenue and EBITDA trends - Management indicated that positive revenue and EBITDA trends among below investment-grade companies are credit positives, and defaults are not expected to increase materially [24][26] Question: Drivers behind the increase in annual trading volume - Increased recognition of premium yields and low credit expenses in CLOs has driven trading volume, along with the advent of ETFs [28][29] Question: Impact of dividend reduction on earnings power - Management acknowledged that the reduction in dividends is primarily due to Fed rate cuts affecting earnings power, but they are making rotations within the CLO equity portfolio to offset some of that [31] Question: Activity regarding asset rotation and cash holdings - The company has seen paydowns in investments due to refinancings and resets, leading to a build-up in cash, which will be used for both paying down preferred stock and buying back common shares [35][40] Question: Industry concentration in software and technology - Most of the concentration is in enterprise software, which is considered stickier and has performed well historically [43] Question: Investment focus in CLOs - The company generally follows market trends in industry concentrations, with technology and healthcare being the highest [44]

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]

Financial Data and Key Metrics Changes - For Q3 2025, the company's net investment income was approximately $5.6 million, or $0.07 per share, compared to approximately $5.5 million, or $0.08 per share, in the prior quarter [4] - The net asset value per share decreased to $1.95 from $2.06 in the prior quarter [4] - Total investment income for the third quarter was approximately $10.2 million, up from approximately $9.5 million in the prior quarter [4] - The company recorded combined net unrealized and realized losses on investments of approximately $7.5 million, or $0.09 per share, compared to losses of approximately $1.1 million, or $0.01 per share, in the prior quarter [4] Business Line Data and Key Metrics Changes - Investment activity included purchases of approximately $58.1 million and repayments of approximately $31.3 million during the quarter [5] - The company issued approximately 5.4 million shares of common stock, resulting in net proceeds of approximately $11.8 million [5] - Issued $74.8 million of 7.75% unsecured notes due July 2030 and fully repaid $34.8 million of 6.25% unsecured notes due April 2026 [5] Market Data and Key Metrics Changes - U.S. loan market performance was stable, with loan prices slightly decreasing from 97.07% of par to 97.06% of par [6] - The 12-month trailing default rate for the loan index increased to 1.47% from 1.11% at the end of June [6] - The distress ratio ended the quarter at 2.88%, down from 3.06% at the end of June [7] - U.S. leveraged loan primary market issuance was $133.7 billion, representing a 22% increase compared to the same quarter in the previous year [7] Company Strategy and Development Direction - The company focuses on portfolio management strategies designed to maximize long-term total return, taking a longer-term view towards investment strategy [7] - The company is considering additional purchases in CLO equity and junior debt tranches, which will be accompanied by appropriate levels of sales [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the cash and equivalents balance increased to $51 million, primarily due to timing from ATM issuances [17] - The company is running a relatively lightly leveraged portfolio, which is a consideration for improving net investment income [19] Other Important Information - The board of directors declared monthly distributions of $0.035 per share for January, February, and March of 2026 [5] Q&A Session Summary Question: What types of investments were found attractive during the quarter? - The company purchased CLO equity pieces from top-tier managers, focusing on steady, predictable cash flow [12] - On the loan side, the focus was on higher quality credits with lower spreads and opportunistic trades in less liquid names [13][16] Question: What is the outlook for potential new additions in Q4? - The company anticipates focusing more on the secondary market for leveraged loans, capturing opportunities at par or below [16] Question: What is the reason for the increase in cash and equivalents? - The increase is primarily attributed to timing related to ATM issuances [17] Question: Has there been consideration for a reverse stock split? - The company is continuously considering viable ideas, including a reverse stock split [18] Question: What levers are available to improve the run rate of net investment income? - The company is considering its lightly leveraged portfolio as one element to improve net investment income [19]

Core Viewpoint - Carlyle Credit Income Fund reported its third quarter financial results for the period ending June 30, 2025, highlighting resilience in a complex market environment and a stable dividend for shareholders [2][3]. Financial Performance - Net investment income was $0.19 per common share, adjusted net investment income was $0.22 per common share, and core net investment income was $0.35 per common share for Q3 2025 [3]. - Net asset value per common share was $6.51 as of June 30, 2025, with a total fair value of investments amounting to $200.4 million [3]. Dividends - The Fund is maintaining a monthly dividend of $0.1050 per share for September, October, and November 2025, equating to an annualized dividend yield of 22.07% based on the share price as of August 15, 2025 [4][8]. - The Fund also declared dividends on its 8.75% Series A Term Preferred Shares of $0.1823 per share for the same months [5][6]. Investment Activities - The Fund funded $28.1 million in new CLO investments with a weighted average GAAP yield of 14.56%, while the aggregate portfolio weighted average GAAP yield was 15.11% as of June 30, 2025 [8]. - The Fund sold 1,400,000 common shares in connection with the ATM offering program at a premium to NAV for net proceeds of $9.2 million [8]. - Additionally, $5.0 million of the remaining $8.5 million 7.125% Series B Convertible Preferred Shares were converted into common shares at a premium to NAV [8]. Company Overview - Carlyle Credit Income Fund is an externally managed closed-end fund focused on investing primarily in equity and junior debt tranches of collateralized loan obligations (CLOs), which are backed by U.S. senior secured loans across various industry sectors [11].

Financial Data and Key Metrics Changes - The company generated net investment income and realized gains of $0.39 per share in Q2 2025, compared to $0.44 per share in the previous quarters [19] - Recurring cash flows were $18 million or $0.67 per share, down from $16 million or $0.71 per share in Q1 2025 [6] - The NAV as of June 30 was $14.08 per share, slightly down from $14.16 per share as of March 31 [7][21] - The company recorded a non-annualized GAAP return of 3.5% for the second quarter [7] Business Line Data and Key Metrics Changes - The company opportunistically deployed $40 million into discounted CLO debt and equity securities during the quarter [8] - The company repurchased over 488,000 shares of common stock for a total of $6.5 million, resulting in NAV accretion of $0.02 per share [21] Market Data and Key Metrics Changes - The S&P UBS Leveraged Loan Index had a total return of 2.3% in Q2 and was up almost 3% year-to-date as of June 30 [14] - The trailing twelve-month default rate increased to 1.1% as of June 30, remaining below the historical average of 2.6% [14] - New CLO issuance was $51 billion in Q2, with reset and refinancing activity at $44 billion and $9 billion, respectively [15][16] Company Strategy and Development Direction - The company plans to continue buying back stock as market opportunities arise, viewing this as a strong investment [24] - The management emphasized the importance of maintaining a strong liquidity position to capitalize on attractive investment opportunities [16][24] Management's Comments on Operating Environment and Future Outlook - Management noted that market volatility in April created attractive buying opportunities for discounted CLO securities [7][24] - The company remains confident in its ability to generate strong returns and is well-positioned to deploy capital into investments offering compelling risk-adjusted returns [16][24] Other Important Information - The company declared three monthly distributions of $0.13 per share for Q4 2025, maintaining the distribution level from the previous quarter [12][20] - As of July month-end, the company's NAV was estimated to be between $14.34 and $14.44 per share, indicating a recovery from June [22] Q&A Session Summary Question: Can you elaborate on the all-in yield from the debt portion of your CLO portfolio? - Management explained that CLO debt is sensitive to short-term rates and that a Fed rate movement could lead to lower income in the fall, while CLO equity is less affected by rate changes [28][30] Question: Is the push out of loan maturities indicative of credit distress? - Management clarified that issuers are refinancing their debt due to a strong market, allowing them to extend maturities without indicating distress [38] Question: How is the pipeline for new investments shaping up? - Management indicated a strong pipeline for both CLO BB debt and equity, with plenty of opportunities in the market [48] Question: What is the status of the share buyback program? - Management noted that the buyback program has been effective in reducing the discount to NAV and that they plan to continue this strategy [50][52] Question: Is there a possibility of a special distribution at the end of the year? - Management stated that while recurring cash flows are currently in line with expenses and distributions, the potential for a special distribution depends on taxable income exceeding distributions [62] Question: Why hasn't the coupon on the BB CLO debt changed dramatically? - Management explained that while spreads have tightened, the overall yield or coupon of CLO BBs has remained stable due to various market factors [66] Question: What is the status of the OC cushion? - Management noted that the OC cushion has declined slightly but remains robust, with plenty of cushion available [70]