The following is a summary of the Carlyle Credit Income Fund (CCIF) Q3 2024 Earnings Call Transcript:
Financial Performance:
CCIF maintained its dividend at $0.105 per share, delivering a 14.8% annualized yield based on the August 20, 2024 share price.
Total investment income for Q3 was $7.4 million, or $0.58 per share.
Net asset value as of June 30 was $7.68 per share, down from $7.88 in the previous quarter.Weighted average GAAP yield of newly invested CLOs stood at 19.5%, and the fund's aggregate portfolio GAAP yield was 20.3%.
Business Progress:
The fund issued new CLO investments totaling $12.3 million in Q3.
Successfully executed six CLO resets to extend the reinvestment periods within the portfolio.
Increased activity in CLO market through a high rate of refinancing and resets, focusing on maintaining competitive arbitrage opportunities.
Opportunities:
The CCIF is leveraging the continued tightening of CLO liability spreads to support CLO equity arbitrage, resulting in increased CLO issuance and reset activity.
Risks:
The higher interest rates may pressure borrowers' ability to manage debt, although Carlyle's U.S. loan portfolio has shown resilience.
The reduction in underlying asset spreads negatively impacted CLO arbitrage, partially offset by tight liability spreads.
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