PDCC: New 13%-Yielding CLO CEF Riding The Boom
Portfolio Pulse from
PDCC, a new CLO Equity CEF by Pearl Diver Capital, has launched with a $136 million market cap and plans to use leverage up to 25%. It offers a 13.2% NAV distribution rate, with net investment income covering 92% of the distribution. The fund charges a 1.5% management fee and faces higher leverage costs than peers.
November 07, 2024 | 3:15 pm
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
PDCC, a new CLO Equity CEF, launched with a $136 million market cap and offers a 13.2% NAV distribution rate. It plans to use leverage up to 25%, but its leverage costs will be higher than peers, potentially impacting net income.
PDCC's high distribution rate and leverage strategy are attractive, but higher leverage costs could impact net income, making the short-term price impact neutral as investors weigh these factors.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100