8-K: Carlyle Credit Income Fund Q2 2026 Results & Dividend

Carlyle Credit Income Fund announced its second quarter 2026 financial results, maintaining its monthly dividend and reporting a net asset value of $3.34 per common share.

Summary

• Carlyle Credit Income Fund (CCIF) reported its financial results for the second quarter ended March 31, 2026.
• The Fund declared a monthly dividend of $0.06 per common share for June, July, and August 2026, representing an annualized dividend rate of 21.49% based on the May 12, 2026 share price.
• CCIF funded $1.5 million in new CLO investments with a weighted average GAAP yield of 11.49%.
• The Fund redeemed all $20 million of its 7.50% Series C Convertible Preferred Shares.
• Net investment income was $0.09 per common share, adjusted net investment income was $0.11 per common share, and core net investment income was $0.29 per common share for the quarter.
• Net asset value per common share was $3.34 as of March 31, 2026.
• The total fair value of investments was $122.9 million as of March 31, 2026.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive filing, with the maintenance of dividends and a lower-than-market default rate being positive, while acknowledging ongoing market pressures.

Positives

• Maintained monthly dividend of $0.06 per common share, supported by core net investment income.
• Funded $1.5 million in new CLO investments with a weighted average GAAP yield of 11.49%.
• Redeemed $20 million of 7.50% Series C Convertible Preferred Shares.
• Core net investment income per share of $0.29 fully covered the quarterly dividend of $0.27 paid during the quarter.
• Underlying CLOs maintain healthy overcollateralization cushions with a weighted average cushion of 4.18%.
• Completed 4 accretive refinancings and resets in the underlying portfolio during Q2 2026 and 6 during fiscal year 2026.
• The Fund's last 12-month default rate of underlying loans (1.18%) is lower than the market default rate (3.04%).

Negatives

• Elevated repricing activity and weakness in the loan market continued to pressure CLO equity cash flows and valuations.
• Net realized and change in unrealized gains (losses) for the quarter was $(1.65) per common share.
• Total net income (loss) for the quarter was $(32,967) thousand, or $(1.56) per common share.

Risks

• Continued volatility across the CLO equity market.
• Elevated repricing activity and weakness in the loan market.
• Potential for future events that cannot be predicted accurately or controlled.
• Risks, uncertainties, and other factors identified in the Risk Factors section of SEC filings.

Future Outlook

Looking ahead, the Fund remains focused on disciplined underwriting, active portfolio management, and investing alongside experienced CLO managers to capitalize on opportunities created by market volatility.

Management Comments

• "We remained focused on long-term value creation amid continued volatility across the CLO equity market."
• "While elevated repricing activity and weakness in the loan market continued to pressure CLO equity cash flows and valuations during the quarter, underlying credit fundamentals across the portfolio remained resilient."
• "We maintained our monthly dividend of $0.06 per share, which we believe remains well supported by core net investment income."
• "During the quarter, we continued to reset CLOs within the underlying portfolio, extending reinvestment periods and lowering financing costs."
• "Looking ahead, we remain focused on disciplined underwriting, active portfolio management, and investing alongside experienced CLO managers as we seek to capitalize on opportunities created by market volatility."

Industry Context

StockSavvy.ai notes that Carlyle Credit Income Fund operates within the Collateralized Loan Obligation (CLO) market, a segment that has experienced significant volatility due to repricing activity and loan market weakness. The Fund's strategy of focusing on disciplined underwriting and active portfolio management aims to navigate these challenging conditions.

Comparison to Industry Standards

• The Fund's last 12-month default rate of underlying loans (1.18%) is notably lower than the broader market default rate (3.04%) for loans including distressed exchanges.
• The weighted average junior overcollateralization (OC) cushion of 4.18% indicates a buffer against potential losses within the underlying CLO structures, which is a key metric for CLO equity performance.
• The weighted average stated loan spread of 2.96% and a weighted average rating factor of B+ reflect the credit quality of the underlying loan portfolio.

Stakeholder Impact

• Shareholders: Continued monthly dividend payments are positive. The net asset value per share of $3.34 provides a benchmark for investment value.
• Creditors: The redemption of Series C Convertible Preferred Shares reduces outstanding debt obligations.
• Investment Managers: The focus on disciplined underwriting and active management reflects ongoing operational strategies.

Next Steps

• Host a conference call on May 20, 2026, to discuss second quarter financial results.
• Continue to focus on disciplined underwriting and active portfolio management.
• Seek to capitalize on opportunities created by market volatility.

Key Dates

Recommendation

The filing indicates expected dividend coverage and a lower default rate than the market, which are positive. However, the ongoing market volatility and pressure on CLO equity cash flows, coupled with a net unrealized loss, suggest a cautious approach. Therefore, a 'hold' recommendation is appropriate pending further market stabilization or improved performance metrics.

Keywords

Carlyle Credit Income Fund, CCIF, CLO, Collateralized Loan Obligations, Dividend, Financial Results, Closed-End Fund, Credit