Executive Summary

Q2 2025 GAAP net investment income per share was $0.23, adjusted NII was $0.26, and core NII was $0.27; total investment income was $8.565M and NAV per share was $6.98 .
The fund maintained its monthly dividend at $0.105 through August (18.75% annualized on the 5/16/25 price); declared dates and pay dates were set for June–August .
Results were pressured by loan repricings (-12bps in weighted average spread) and 18% of the portfolio diverting payments to fund accretive resets/refis; recurring cash flows fell to $0.49 per share but rebounded to ~$0.62 in Q3 2025 commentary .
Versus S&P Global consensus, CCIF missed on EPS ($0.23 vs $0.2625) and revenue ($8.565M vs $9.041M); 4 estimates were tracked for each metric (Values retrieved from S&P Global)*.

What Went Well and What Went Wrong

What Went Well

Completed 13 accretive refinancings/resets, extending the weighted average remaining CLO reinvestment period from 2.5 to 3.1 years; portfolio WA GAAP yield was 16.48% and cash yield on quarterly payments was 22.67% .
Capital markets execution: $18.6M net from 7.50% convertible preferreds and $12.2M net from ATM common issuance at a premium to NAV, adding ~$0.02 NAV accretion per share in the quarter .
Management emphasized resilience: “Our second quarter results reflect the resilient nature of the loan and CLO market… we continue to focus on optimizing our CLO positions including completing 13 accretive refinancings and resets” — Nishil Mehta .

What Went Wrong

Loan repricing and macro volatility: weighted average spread declined an additional 12bps; CLO primary spreads widened in April on tariff concerns before starting to retrace; resets/refis slowed until liabilities tighten further .
18% of the portfolio did not make payments as quarterly cash flows were redirected to fund resets/refis and some primary issuances had not yet made initial distributions, reducing CNII and recurring cash flows in Q2 .
NAV marked lower intra-quarter as third-party valuation agent raised discount rates in DCFs amid market volatility; management noted daily NAVs rebounded as markets rallied post-quarter end .

Financial Results

Income Statement Metrics (per share) and Investment Income

Metric	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025
Total Investment Income ($USD Millions)	$7.301	$7.383	$7.901	$8.269	$8.565
Net Investment Income per Share	$0.33	$0.32	$0.30	$0.26	$0.23
Adjusted NII per Share	$0.34	$0.31	$0.27	$0.32	$0.26
Core NII per Share	$0.37	$0.46	$0.45	$0.44	$0.27
Recurring Cash Flows per Share	$0.64	$0.81	$0.70	$0.70	$0.49
Net Income per Share	—	—	$(0.05)	$0.09	$(0.17)
NAV per Share (quarter-end)	$7.88	$7.68	$7.64	$7.44	$6.98

Consensus vs Actual (Q2 2025)

Metric	Actual	Consensus	Surprise
EPS (Primary)	$0.23	$0.2625	—0.0325 (—12.4%): bold miss*
Revenue ($USD)	$8,565,000	$9,041,260	—$476,260 (—5.3%): bold miss*

Values retrieved from S&P Global*

KPIs and Portfolio Metrics

KPI	Q1 2025	Q2 2025	Change QoQ
Total Investments at Fair Value ($USD ‘000s)	$177,907	$197,902	+$19,995
Number of CLO Holdings	52	61	+9
Total Portfolio WA GAAP Yield	17.22%	16.48%	—74bps
Cash Yield on Quarterly Payments	25.15%	22.67%	—248bps
WA Remaining CLO Reinvestment Period	2.5 years	3.1 years	+0.6 yrs
WA Junior OC Cushion	4.18%	4.46%	+28bps
S&P CCC Rated Obligors	5.35%	5.17%	—18bps
Obligors Priced <80	3.40%	3.30%	—10bps
WA Stated Loan Spread	3.38%	3.26%	—12bps
Net Assets ($USD ‘000s)	$125,020	$131,969	+$6,949
Preferred Equity (Principal) ($USD ‘000s)	$63,517	$80,517	+$16,999
Leverage (Preferred to Total Assets)	0.33x	0.38x	+0.05x

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Monthly Dividend (Common)	Jun–Aug 2025	$0.105 declared through May 2025	$0.105 declared for Jun, Jul, Aug 2025; 18.75% annualized on 5/16/25 price	Maintained
Monthly Dividend (Series A Preferred)	Jun–Aug 2025	$0.1823 declared for Mar–May 2025	$0.1823 declared for Jun, Jul, Aug 2025	Maintained
Recurring Cash Flows (Outlook)	Q3 2025	~$0.49 per share implied for Q2 2025	Approximately $0.62 per share (management commentary)	Raised (operational outlook)

Dividend record/payable dates and amounts detailed in the release .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Tariffs/Macro Volatility	Stable backdrop; Fed cuts; divergence between in-court defaults vs distressed exchanges; repricings reduced spreads ~20–25bps	CLO primary spreads widened in April on tariff announcements, now retracing; expect slowdown in resets/refis until liabilities tighten further	Deteriorated in April, stabilizing thereafter
Loan Repricing Impact	Spread compression —26–33bps YTD; reduced GAAP yields; CNII supported by high cash yields	Additional 12bps spread decline; repricings stalled given volatility; expected lower repricing drag near term	Headwind easing near term
Reset/Refi Activity	7 YTD resets through Sept; accelerating into late 2024 and early 2025	13 resets/refis in Q2; added 0.6 years to WA reinvestment period	Strong execution; portfolio optimization
Credit Quality/Defaults	LTM default incl. distressed exchanges ~4.5% market; CCIF ~1.5%	CCIF LTM default incl. exchanges at ~1.3%; CCC 5.2% and obligors <80 at 3.3%	Stable, better than market
Capital Markets	$22.2M raised (Q4 2024) incl. 7.125% pref; ATM accretive	$18.6M 7.50% conv. preferred; $12.2M ATM; NAV accretion ~$0.02 per share	Continued accretive scaling
Tax/Regulatory (PFIC timing)	FY24 distributions largely ROC due to PFIC timing mismatch; core NII exceeded distributions	No new tax designation changes reported; ongoing sale process for legacy real estate loan	Monitoring; structural issue persisted

Management Commentary

“Our second quarter results reflect the resilient nature of the loan and CLO market… we continue to focus on optimizing our CLO positions including completing 13 accretive refinancings and resets” — Nishil Mehta (PEO/President) .
“CLO primary spreads widened further in April, following harsher than anticipated tariff announcements… we anticipate a slowdown in both CLO resets and refinancings until spreads tighten further” — Lauren Basmadjian (Chair, Global Head of Liquid Credit) .
“Adjusted net investment income… was $4.6 million or $0.26 per share… core net investment income… was $0.27 per share. The decline… was attributable to approximately 18% of the portfolio not making payments [to fund resets/refis and primary issuances not yet making initial distributions]” — Nelson Joseph (CFO) .
“Our net asset value… is based on a bid-side mark we receive from a third party on 100% of the CLO portfolio… we have seen a rebound in the NAV as the market has rebounded as well” — Nishil Mehta .

Q&A Highlights

Repricing headwind and payment diversion: Management quantified a 12bps spread decline from repricings and clarified 18% of positions diverted payments to fund resets/refis (mainly January), with repricing activity halted amid volatility, reducing expected drag in Q3 .
Out-of-court restructurings: Elevated vs history; expected to remain dominant over in-court processes; vintage (2021 LBOs) and higher-rate environment are key drivers; CCIF’s platform strength in workouts noted as advantage .
Primary vs secondary deployment: Relative value similar given retracement; targeting low-to-mid teens returns with sufficient reinvestment periods; active in both markets .
NAV dynamics: April NAV decline was market-driven (loan price drop and higher valuation yields); daily NAVs have since rebounded alongside markets; liquidation of an underperforming 2021 CLO was idiosyncratic .
Healthcare exposure: Monitoring potential budget-related impacts (NIH/FDA/DOGE programs); risks seen as idiosyncratic; portfolio interest coverage strong with <3% of borrowers <1x .

Estimates Context

Q2 2025 EPS: $0.23 actual vs $0.2625 consensus (4 estimates) — miss; Revenue: $8.565M actual vs $9.041M consensus (4 estimates) — miss (Values retrieved from S&P Global)*.
Estimate revisions may need to reflect lower recurring cash flows tied to payment diversion for resets/refis in Q2 and repricing drag, offset by Q3 rebound (~$0.62 per share recurring cash flows) and extended reinvestment periods .

Key Takeaways for Investors

Dividend stability looks supported by CNII and cash-on-cash yields despite Q2 headwinds; declared $0.105 monthly through August with high implied yield on market price .
Near-term earnings optics may improve as repricing activity stalls amid volatility and as payment diversion normalizes post-resets/refis; management flagged reduced repricing drag and Q3 recurring cash flow rebound .
Portfolio optimization continues to extend reinvestment runway, enhancing ability to build par and capture wider asset spreads during volatility; WA reinvestment rose to 3.1 years, OC cushions remained healthy .
Daily NAVs are sensitive to market marks and valuation assumptions; recent rebound suggests technicals rather than fundamental deterioration drove April NAV dip .
Capital formation remains accretive (ATM at premium, convertible preferreds at 7.50%); scaling could improve liquidity and trading profile while modestly increasing leverage (0.38x) .
Credit metrics remain better than market (LTM default incl. exchanges ~1.3% vs market ~4%); CCC and sub-80 exposures modest and trending down .
Tactical positioning: Favor defensively structured CLOs with ample reinvestment period and stronger managers; monitor tariff/macro headlines for liability spread moves that could re-open reset/refi windows .

Notes on non-GAAP: Adjusted NII excludes non-cash amortization of deferred issuance costs/OID on preferreds; CNII adjusts GAAP NII for CLO equity effective yield differences and non-cash amortization to better reflect recurring cash generation .