The Carlyle Credit Income Fund (NYSE: CCIF) reported a stable net asset value of $3.32 per share for the third quarter of 2026, according to materials released on August 20. The fund maintained its NAV despite a decline from $6.51 per share in the same period of 2025, while declaring a quarterly dividend of $0.18 per common share.
Net investment income for the quarter totaled $0.07 per share, down from $0.19 per share in Q3 2025, though core net investment income stood at $0.25 per share. Dividend coverage reached 139%, supported by recurring cash flows of $0.37 per share, reflecting a cash yield of 20.09% on the collateralized loan obligation (CLO) portfolio. Total investment income for the quarter was $4.3 million, compared with $8.6 million in the prior-year period, while expenses amounted to $2.8 million.
The fund’s portfolio, valued at $71.0 million as of June 30, 2026, remained 98% allocated to CLO equity positions, with the remainder in a legacy real estate loan. The CLO holdings spanned 42 unique investments managed by 22 different managers, covering 1,450 obligors and 1,897 loans with an aggregate balance of $17.24 billion. Industry concentration remained high, with healthcare and pharmaceuticals at 31.4%, followed by high tech at 12.1% and financial services at 11.8%.
Credit quality metrics showed a weighted average loan rating of B+, with CCC-rated exposure at 4.13% and loans priced below 80 at 4.90%. The largest single obligor exposure was TransDigm at 0.58%, while the top 10 obligors combined accounted for 4.42%. The weighted average junior overcollateralization cushion stood at 4.24%, and the 12-month trailing default rate for underlying loans was 0.95%, below the broader loan market default rate of 2.29%.
During the quarter, the fund deployed $11.9 million in new investments with a weighted average GAAP yield of 12.96%, compared with the portfolio’s overall yield of 10.44%. Sales proceeds totaled $12.5 million, and three refinancings were completed, bringing the year-to-date total to 10. The fund’s leverage ratio stood at 0.41x as of June 30, supported by $1.0 million in secured credit facility debt and $50.5 million in preferred equity across three series.
Carlyle Group’s broader credit platform reported $211 billion in assets under management globally, including $47.9 billion in CLO strategies across U.S. and European markets. The Series D term preferred shares, rated BBB+ by Egan-Jones Ratings Company, traded at $25.15 on August 17, 2026, against a $25 liquidation preference, with a 7.375% coupon and maturity set for October 30, 2028.
