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Stepping Up to Nibble a Bit

I just took a nibble on the newer Carlyle Credit Income Fund 8.75% term preferred stock—CCIA. This issue was floated 10/18/23. I have been watching the issue and it has been trading above $25 since issued and now is trading at $25.40. A bonus (at least to me) is that the issue is a monthly payer–I always prefer money in my pocket instead of waiting 3 months for a payment.

CCIF is a newer fund (actually a rebrand of another fund) and is relatively small–around $100 million and Eagle Point Credit (ECC) owns a large position in the common shares.

CCIF is an owner of CLO (collateralized loan obligations) – so comparable to the Eagle Point Credit (ECC) issues and the Oxford Lane (OXLC) issues. I bought the Carlyle issue because it is a 8.75% coupon and has a relatively short maturity which is in 2028. This nibble helps to balance the last purchase I made which was the Spire 5.9% perpetual preferred (SR-A) which is a quality utility issue.

Below is an AI generated recap of the Carlyle Credit Income Fund.

One thought on “Stepping Up to Nibble a Bit”

  1. I started nibbling on some short positions as a hedge last Wednesday. The more that preferred issues drop, the more short I’ll get. And if I get to cover any for a decent profit, I’ll add some hopefully price depressed long positions.

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