Sign in

    Doug Harter • UBS Group AG

    Doug Harter's questions to Ellington Credit Co (EARN) leadership

    Doug Harter's questions to Ellington Credit Co (EARN) leadership • Q2 2025

    Question

    Doug Harter of UBS inquired about the market dynamics causing CLO AAA spreads to not fully retrace compared to underlying loan spreads, and asked if this would lead to a continued portfolio allocation favoring CLO debt over equity.

    Answer

    Portfolio Manager Greg Borenstein explained that the lag in AAA spreads is a technical factor driven by slightly reduced demand compared to earlier in the year when they were priced very tightly relative to other credit products. He confirmed that if the current arbitrage challenge persists, the company would likely continue to favor CLO debt and secondary market opportunities over new issue CLO equity.

    Ask Fintool Equity Research AI

    Doug Harter's questions to MSC Income Fund Inc (MSIF) leadership

    Doug Harter's questions to MSC Income Fund Inc (MSIF) leadership • Q1 2025

    Question

    Cory Johnson, on behalf of Doug Harter from UBS, asked about the pace of decline and potential for additional realized losses in the middle market portfolio, and also questioned the exit strategy for the lower middle market positions.

    Answer

    CEO Dwayne Hyzak and Managing Director Nicholas T. Meserve clarified that Q1 realized losses were from two long-underperforming middle market names that had been marked down for years, and the portfolio is now de minimis. Regarding the lower middle market, Dwayne Hyzak stated its wind-down will be a very long process as exit timing is controlled by their owner-operator partners, and the fund views these as valuable long-term investments.

    Ask Fintool Equity Research AI

    Doug Harter's questions to AG Mortgage Investment Trust Inc (MITT) leadership

    Doug Harter's questions to AG Mortgage Investment Trust Inc (MITT) leadership • Q4 2024

    Question

    Marissa Lobo, on behalf of Doug Harter from UBS Group AG, asked for a comparison of the relative attractiveness between non-QM and home equity assets, including their respective securitization markets, and questioned the strategy for managing the increased costs from preferred stock rolling to floating rates.

    Answer

    Chief Investment Officer Nicholas Smith explained that home equity is a newer, large addressable market where MITT sees a first-mover advantage, making it currently more attractive, though non-QM still offers relative value. CEO T.J. Durkin addressed the preferreds, stating the company had anticipated the floating rate switch and expects other financing efficiencies coming later in the year to help offset the increased cost at a corporate level.

    Ask Fintool Equity Research AI