Randolph Binner's questions to Carlyle Credit Income Fund (CCIF) leadership • Q2 2025
Question
Randolph Binner inquired about the forward outlook for net investment income, specifically questioning the impact of a 12 basis point lag from repricing and the percentage of the portfolio affected. He also asked for the percentage of the portfolio with an interest coverage ratio below 1x and about the ongoing trend of out-of-court restructurings.
Answer
Nishil Mehta, Principal Executive Officer and President, clarified that the 12 bps drag from loan repricings was separate from the 18% of the portfolio that missed payments due to accretive resets and refinancings. He noted that repricing activity has halted due to recent market volatility. Lauren Basmadjian, Chair and Global Head of Liquid Credit, added that less than 3% of Carlyle's broader loan portfolio has an interest coverage ratio below 1x and confirmed that while out-of-court restructurings are elevated, they are expected to remain the norm.