Carlyle Credit Income Fund (CCIF) reported stable third-quarter results for 2026, with net investment income of $1.5 million, or $0.07 per share, as the fund maintained its monthly dividend at $0.06 per share through November 2026.
The fund’s net asset value stood at $3.32 per share as of June 30, 2026, while adjusted net investment income reached $1.9 million, or $0.09 per share. Core net investment income was $0.25 per share, providing 139% coverage for the declared dividend. Recurring cash flows for the quarter totaled $0.37 per share, and the underlying investments generated an annualized cash-on-cash yield of approximately 20%.
During the quarter, CCIF deployed $11.9 million in new collateralized loan obligations (CLOs), with a weighted average GAAP yield of 13%. Total sales proceeds amounted to $12.5 million, and the fund completed three refinancings, bringing the fiscal year total to 10. The weighted average years left in the reinvestment period increased from 3.3 to 3.5 years.
The portfolio remains conservatively positioned, with over 97% exposure to first-lien senior secured loans and a weighted average junior overcollateralization cushion of 4.24%. Exposure to S&P CCC-rated loans stood at 4.1%, below the 7.5% limit in CLOs. The fund’s diversified holdings span approximately 1,900 underlying loans across roughly 1,400 unique obligors, with no single issuer exceeding 1% of the portfolio.
CCIF’s preferred Series A (CCIA) shares edged up 0.12% to $25.14, trading within a 52-week range of $24.96 to $25.85.
Management highlighted stability in the CLO equity market during the quarter, with minimal volatility following a turbulent first quarter. Spread compression has moderated, and repricing activity has slowed from elevated levels over the past two years. The fund also noted strong underlying credit fundamentals, supported by an average interest coverage ratio of 3.4 times across the portfolio.
Industry data showed a 35% decline in new issue CLO volume to $23 billion in Q3, the lowest in roughly 2.5 years. However, resets and refinancings rose to $49 billion and $41 billion, respectively. U.S. leveraged loans posted a year-to-date return of 1.3%, with average bid prices retracing to $0.95 by quarter-end.
