Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| So obviously, when we're turning the portfolio, by definition, we're seeking better total returns, better risk-adjusted returns than the positions we held historically |
| loan market performance improved versus the prior quarter |
| We saw a meaningful improvement in NAV, certainly, driven by strength in the underlying collateral pool |
| It's just that the balance sheet continues to improve and improve |
| But this was a strong quarter |
| Look, it shows the benefits of active management, and congratulations to everyone on the team on that |
| And it's nice that you guys are paying attention to price |
| Well, congrats on a great quarter |
| CLO new issuance during the quarter totalled approximately $28 billion, an increase of $6 billion from the prior quarter |
| For the quarter ended September, we recorded GAAP total investment income of approximately $74.4 million, representing an increase of approximately $3.9 million from the prior quarter |
| So very much so |
| And then I guess the final question is, like, the balance sheet is just in terrific shape |
| We've seen that basis grow and shrink throughout the year |
| Additionally, we observed loan pools within CLO portfolios increased their weighted average spreads to 370 basis points compared to 359 basis points last quarter |
| So in instances where we see the ability to sell something and buy something at a better price with a better reinvestment period or a cleaner portfolio or more stronger cash flows or a diminished probability of a future diversion, we will likely engage in those trades |
| Good morning |
| CLO equity, debt and warehouses as we look to maximize our long-term turn-over return |
| It's pretty wide at the moment, so that's a potential avenue for some relative value |
| Thank you |
| Statement |
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| Mickey Schleien And I imagine that given the war in the Middle East and the weakness in the markets in October, if anything, that opportunity is lower now than it was in the third quarter |
| Quarter ended September, we recorded net realized losses of approximately $10.5 million and net unrealized appreciation on investment of approximately $95.8 million or $0.44 per share in total |
| The 12-month trailing default rate for the loan index decreased to 1.27% by principal amount at the end of the quarter from 1.71% at the end of June |
| Median junior overcollateralization positions declined 0.1% to approximately 4.1% |
| I want to understand, to what extent is your goal of defending the portfolio's average reinvestment period driving exits from post-reinvestment periods, CLOs? Those prices have been relatively weak and are those what's leading to the realized losses? Jonathan Cohen I don't think in a meaningful way, Mickey |
| My next question, with inflation still above target, the consensus seems to be building around higher interest rates for longer, so curious to understand how managers are dealing with that risk in terms of the stress to their issuers' interest coverage ratios and the potential for more downgrades to CCC |
| We've seen some managers take proactive measures in terms of limiting their CCCs, limiting their single B exposure -- just for the potential of further downgrades to manage those tests |
| We ask that you refer to our most recent filings with the SEC for important factors that can cause actual results to differ materially from those indicated in these projections |
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