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- **Record Performance**: 2024 GAAP ROE of 21% and 24.8% total return, with $2.40 per share distributed (15.2% yield). Q4 NAV up 1% to $14.99 per share.
- **CLO Growth**: $91M invested in 11% yield CLOs, with 5 refinancings lowering debt costs by 28bps. CLO market issuance hit record $202B in 2024.
- **Stable Distributions**: $0.20/month distributions maintained through June 2025, supported by $3.30/year cash flows.
- **Strategic Shifts**: Potential increase in CLO equity allocation to 30%, with selective growth in high-yielding CFO investments.
- **Risk Management**: 0.4% portfolio default exposure, 30% leverage, and $30M+ liquidity for reinvestment opportunities.

**【CEO Opening Remarks】**
- **2024 Performance Highlights**: Achieved a GAAP return on equity of 21% and a total return of 24.8% on common stock (including reinvested distributions). Distributed $2.40 per share in cash, representing a 15.2% yield based on average stock price.
- **Q4 Cash Flows**: Received $16.1 million ($0.82 per share) in recurring cash flows, driven by new CLO debt investments. NAV increased to $14.99 per share, up 1% from Q3 and 4% year-over-year.
- **Distribution Stability**: Maintained monthly $0.20 per share distributions through June 2025, supported by consistent portfolio cash flows.

**【Portfolio Manager (Dan Ko) Investment Update】**
- **CLO Deployment**: Invested $91 million in new CLO debt and equity with a weighted average yield of 11%. Q4 S&P UBS Leveraged Loan Index returned 2.3%, and prepayments remained elevated at 7% of the market.
- **CLO Refinancings**: Completed 5 refinancings and 4 resets, lowering debt costs by 28bps and extending reinvestment periods to 3.0 years. Default risk remains low (0.9% trailing 12-month rate).
- **Market Trends**: Record $202 billion in new CLO issuance in 2024, with $509 billion in total issuance (including resets). CLO BB spreads remain attractive despite rate cuts, with limited impact on portfolio yields.

**【CFO (Lena Umnova) Financial Results】**
- **Q4 Earnings**: NII and realized gains of $0.54 per share, up from $0.57 in Q3. GAAP net income of $0.76 per share included $1.6 million in realized gains and $2.0 million in unrealized appreciation.
- **Leverage and Liquidity**: Maintained 30% leverage (within 25%-35% target) and $30 million+ cash/revolver capacity as of January 31. NAV estimate for January 31 was $14.96-$15.06 per share.

**【Q&A Key Takeaways】**
- **CLO Debt Outlook**: CLO BB spreads expected to trend tighter over time, but reinvestment risk exists as called bonds are replaced at lower spreads. CLO equity allocation could rise to 30% of portfolio.
- **CFO Investments**: Small ($13M) but high-yielding positions in CFO debt and equity, with subordination levels 2-3x higher than CLO debt. Selective growth in this segment.
- **Rate Sensitivity**: CLO BBs may see minor NII impact from Fed rate cuts, but CLO equity is less sensitive. Management prioritizing rate-agnostic investments.


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