Palmer Square Capital BDC Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Doug Harter - UBS AG - Analyst : Thanks. You've talked about the benefit of the liquid nature of your portfolio. I was wondering if you could give us some examples of that during the second quarter and how that might have been put to use?

Question: Doug Harter - UBS AG - Analyst : That makes sense. And then just, I guess, along those lines, how did you manage leverage during that period of volatility, how willing were you to kind of let it to float up or kind of how -- yeah, just your thoughts on how you manage leverage during that period at the time?

Question: Doug Harter - UBS AG - Analyst : Great. Thank you.

Question: Melissa Wedel - JPMorgan Chase & Co - Analyst : Good afternoon. Thanks for taking my questions today. I wanted to start on the income statement, really top line interest income. I noticed that stable or slightly higher quarter-over-quarter, despite there being a decent number of exits or repayments during the quarter and what I assume is sort of a lower average earning asset base in 2Q versus 1Q. I was wondering if that's driven by some repayments -- some acceleration of OID on some repayments or anything else that we should be aware of?

Question: Melissa Wedel - JPMorgan Chase & Co - Analyst : You actually just touched on my next question. I noticed the 40 bp pickup in the yield on new investments. It seems like part of that was driven by the European opportunity. I'm curious how broad-based that opportunity is, should we -- might that be an area for more defensiveness on portfolio yields and how much of that would you reasonably sourced for originations in the BDC itself. So I'm not sure if those would count in a 30% bucket or not.

Question: Melissa Wedel - JPMorgan Chase & Co - Analyst : I appreciate that context. It's really helpful. I'll hop back into queue. Thank you.