Priority Income Fund Posts Semi- Annual Report

Priority Income Fund (untraded) has posted their semi-annual report through 12/31/2019.

Priority Income Fund is a holder of CLOs (collateralized loan obligations).

The company has 6 outstanding term preferred which can be seen here.

The filing by the company can be seen here. Of specific note is the company has upped their allocation to CLO debt tranches to around 17-18%–of course this leaves them at 82-83% equity tranches which are typically higher risk.

4 thoughts on “Priority Income Fund Posts Semi- Annual Report”

  1. I don’t own any PRIF and I ask for my own knowledge. why are most of the PRIF preferreds selling under par, at the moment?

  2. Some key points of why I like PRIF preferreds better than the OXLC ones:

    * We continue to be underweight both the retail and oil & gas industries due to the underperformance seen in both markets. At December 31, 2019, Priority’s exposure to the oil & gas industry was 2.58% and exposure to the retail industry was 3.35%.

    * The market trailing 12-month (“TTM”) default rate as of December 31, 2019 was 1.39% compared to a 0.48% default rate in the Senior Secured Loans underlying the CLOs held by Priority.1 Priority’s TTM default rate continues to outperform the market default rate, with such outperformance equaling 91 basis points as of December 31, 2019.

    1. I’m with you landlord–have 2 of the issues. OXLCs performance has been nothing short of disasterous.

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