Carlyle Credit Income Fund

CCIF

Market cap $114M

I maintain my Hold rating on Carlyle Credit Income Fund due to persistent NAV decline, weak earnings, and continued share price pressure in a high-rate environment. Despite a 22.8% dividend yield and a large discount to NAV, I remain cautious as the discount reflects internal fund weakness, not opportunity. CCIF's earnings and dividend coverage have weakened, with sustainability concerns if defaults rise or interest rate cuts are delayed further.

Carlyle Credit Income Fund (CCIF) Q3 2025 Earnings Call Transcript

NEW YORK, Aug. 19, 2025 (GLOBE NEWSWIRE) -- Carlyle Credit Income Fund (“we,” “us,” “our,” “CCIF” or the “Fund”) (NYSE: CCIF) today announced its financial results for its third quarter ending June 30, 2025. The full detailed presentation of the Fund's third quarter 2025 financial results can be viewed on the Fund's website (carlylecreditincomefund.com/investor-dashboard).

Recent price drops in CLO equity CEFs like ECC, OXLC, OCCI, and CCIF are driven by fear, not fundamentals, creating a compelling buying opportunity. Despite DOJ investigation headlines and distribution cuts, underlying CLO equity fundamentals remain strong, with no substantial increase in defaults or economic downturn signs. These funds now trade at rare, significant discounts to NAV, offering exceptionally high yields—some exceeding 25%—for long-term income-focused investors.

NEW YORK, July 23, 2025 (GLOBE NEWSWIRE) -- Carlyle Credit Income Fund (“we,” “us,” “our,” “CCIF” or the “Fund”) (NYSE: CCIF) announced today that it will release financial results after market close on Tuesday, August 19, 2025, for its third quarter of 2025. CCIF will host a conference call at 10:00 a.m. EST on Wednesday, August 20, 2025, to discuss the results.

Downgrading CCIF to hold due to declining NAV, shrinking earnings, and persistent headwinds from elevated interest rates. Despite a high 19.3% yield and strong distribution coverage, recurring cash flows and net income have notably decreased. CCIF's portfolio is highly diversified but concentrated in risky CLO equity and below-investment-grade loans, increasing vulnerability in a tough credit environment.

Carlyle Credit Income Fund (CCIF) Q2 2025 Earnings Call Transcript

NEW YORK, May 20, 2025 (GLOBE NEWSWIRE) -- Carlyle Credit Income Fund (“we,” “us,” “our,” “CCIF” or the “Fund”) (NYSE: CCIF) today announced its financial results for its second quarter ending March 31, 2025. The full detailed presentation of the Fund's second quarter 2025 financial results can be viewed on the Fund's website (carlylecreditincomefund.com/investor-dashboard).

The CLO Equity CEF sector has doubled in size over the past two years, driven by new entrants and favorable market conditions. Key catalysts include a benign default environment, tightening credit spreads, and the attractiveness of floating-rate assets amid a flat/inverted yield curve. CLO Equity funds benefit from embedded options like reinvestment and call options, which enhance returns during periods of market volatility.

CCIF offers a 19% yield and trades at a discount to NAV, making it an attractive buy for high-yield income. SPMC, with a 16% yield and growing AUM, is a solid hold, especially if market corrections provide buying opportunities. EARN, recently converted to a CLO CEF, offers a 17% yield, but is still building its portfolio; best kept on a watchlist.