Closed end fund Carlyle Credit Income Fund (CCIF), an owner of CLOs (primarily the equity tranche has a 8.75% term preferred (CCIA) outstanding which has a maturity of 10/31/2028–BUT an optional 1st call date starting 10/31/2025.
This is a monthly payer at 18 cents month on the last day of the month and at this moment is trading at $25.53.
On 1/31/2025 CCIF was able to sell an issue of 7.50% convertible preferred in a private transaction.
We don’t know what interest rates will do between now and October, but if they fall there is a real chance that the CCIA issue will be redeemed on 10/31/2025—or at a minimum fall back to near $25 simply on the potential for a call. In my opinion if shares rise into the high $25’s one should consider selling.
This is an issue that I bought a number of times in 2024, but exited (at $26.67) on the giant silly spike back January. I will potentially re-enter if shares fall down to the $25.20 area (I have a few token shares in the account yet).
