The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Douglas Harter - UBS Investment Bank - Analyst
: Can you just talk about -- you talked a little bit about moving into slightly more private credit, kind of how you would think about kind of a maximum
for the portfolio in order to keep the liquid nature of the portfolio?
Question: Douglas Harter - UBS Investment Bank - Analyst
: And just given your seat in the market, are you seeing any difference in underwriting quality or covenants as you look at the two markets?
Question: Melissa Wedel - JPMorgan Chase & Co - Analyst
: First, I wanted to just touch on the portfolio yield. I noticed that has jumped around a little bit over the last couple of quarters, perhaps a bit more
than sort of the change in base rates. I'm just curious if there's anything to read into that. I'm not sure if that's just a function of it being a measure
on fair value or if there's something else going on?
Question: Melissa Wedel - JPMorgan Chase & Co - Analyst
: Okay. I appreciate that. And is there any sort of -- was there -- given the repricing activity that took place, was there any sort of accelerated OID
that's embedded in there -- in the interest income that we're -- maybe isn't separately broken out?
Question: Melissa Wedel - JPMorgan Chase & Co - Analyst
: Okay. And if I could, one last question. Thinking about the fourth quarter. I know that in -- traditionally in BDC portfolios and in the private credit
space, in particular, there tends to be sort of a seasonal burst of activity in the fourth quarter as companies are trying to get some deals done. You
guys have obviously have a little bit of a different focus, sort of with the more liquid portfolio.
I'm curious if we should adjust our expectations for sort of portfolio activity or churn in the fourth quarter just because you guys do have a different
focus than there might be a little bit less the seasonality in investment activity and exits? Or do you think it should be directionally similar to what
we see in the rest of the private credit space.
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NOVEMBER 05, 2024 / 6:00PM, PSBD.N - Q3 2024 Palmer Square Capital BDC Inc Earnings Call
Question: Derek Hewett - BofA Securities - Analyst
: So what percentage of the decline in one-month SOFR was reflected in third quarter results? And more importantly, kind of as rates -- if rates
continue to trend lower, kind of how quickly does the portfolio reprice?
Question: Derek Hewett - BofA Securities - Analyst
: Okay. And then short-term investments were down meaningfully this past quarter. I'm assuming it's an important source of liquidity. But how
should we -- should we expect kind of more runoff going forward, which would be kind of reinvested in kind of in higher-yielding strategies?
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NOVEMBER 05, 2024 / 6:00PM, PSBD.N - Q3 2024 Palmer Square Capital BDC Inc Earnings Call
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