Pearl Diver Credit (NYSE:PDCC) reported a first-quarter net loss as market-driven unrealized losses weighed on results, while management said recurring cash flows from its CLO portfolio remained strong enough to exceed distributions and expenses.
Chief Executive Officer Indranil Basu said the broader CLO equity market “remained challenged” during the quarter, with tight spreads early in the period followed by increased volatility tied to geopolitical risks, including the war in the Middle East, higher oil prices and renewed concerns about near-term inflation. He said the company’s quarterly results were “mostly driven by unrealized losses,” which he described as non-cash and based on market movements.
