Shares fell 2.3% as investors digested a notable 10% decline in NAV amid mark-to-market headwinds in the CLO debt portfolio, driven by wider spreads and risk aversion, despite stable net investment income and active portfolio management.
- NAV declined from $13.31 to $11.99 per share, primarily due to wider spreads and weaker demand for CLO junior debt.
- Net investment income rose slightly to $0.36/share from $0.35/share last year, covering the $0.33/share distribution.
- Deployed $56 million into new investments at an attractive 16.0% weighted average yield during volatile markets.
- Completed capital restructuring with issuance of 6.00% perpetual preferred stock and redemption of more expensive 8.00% preferred stock, lowering funding costs.
- Repurchased nearly 390,000 shares at a 19.3% discount to NAV during the quarter, totaling $50 million since June 2025, contributing $0.04/share in NAV accretion.
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