Earnings call transcript: Carlyle Credit Income Fund posts stable Q3 2026 results

Carlyle Credit Income Fund reported stable third-quarter results for 2026, with net asset value holding steady and core net investment income covering the monthly dividend by 139%. The fund's total investment income amounted to $4.3 million, or $0.20 per share, with expenses of $2.8 million. Core net investment income stood at $0.25 per share, while total expenses were $2.8 million.

The fund's portfolio remained defensive, with over 97% exposure in first-lien senior secured loans. Management noted that spread compression appears to be slowing, and more two-sided pricing is emerging in the CLO and loan markets. Carlyle Credit Income Fund's focus remains on secondary-market opportunities and higher-yielding investments, while the fund continues to rotate assets in favor of such positions.

The fund's principal executive officer and president, Nishil Mehta, highlighted that the CLO equity market remained stable after a volatile start to the year. He also expressed optimism about slowing spread compression and improving market conditions. Carlyle Credit Income Fund's dividend coverage remained strong at 139% of the monthly dividend, with a monthly dividend of $0.06 per share.

The fund's NAV as of June 30 was $3.32 per share, reflecting a steadier CLO market after earlier volatility.