Let's turn now to the big tech story. We love the big tech stories that come out every day from Bloomberg News, deeply sourced, just great, fascinating stories. Really well done.This one goes to Wall Street's balance of power shifting. Big banks are roaring back as act As regulation eases, lending surges and private credit giants lose some of their luster there. Bloomberg's Catherine Chu Glinski helps lead our investing coverage.She is the pride of the blame Emory University, but she leads our coverage on a ...

Core Insights - Historically elevated prices in equities, corporate bonds, housing, and leveraged loan markets may indicate a potential significant pullback in valuations [1] - Federal Reserve Governor Lisa Cook suggests that while a drop in valuations is possible, it is unlikely to lead to a downward spiral for the entire financial system [1] Market Analysis - The current high prices across various asset classes, including equities and corporate bonds, raise concerns about future valuation corrections [1] - The leveraged loan market and housing prices are also highlighted as areas of concern regarding potential valuation adjustments [1]

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]