Sound Point Meridian Capital Q1 26/27 Earnings Report

Sound Point Meridian Capital EPS Results

• Actual EPS: $0.24
• Consensus EPS: $0.30
• Beat/Miss: Missed by -$0.06
• One Year Ago EPS: N/A

Sound Point Meridian Capital Revenue Results

• Actual Revenue: $12.42 million
• Expected Revenue: $14.18 million
• Beat/Miss: Missed by -$1.76 million
• YoY Revenue Growth: N/A

Sound Point Meridian Capital Announcement Details

• Quarter: Q1 26/27
• Date: 8/12/2026
• Time: Before Market Opens
• Conference Call Date: Wednesday, August 12, 2026
• Conference Call Time: 11:00AM ET

Sound Point Meridian Capital (NYSE:SPMC) Inc. is an externally managed, non-diversified closed-end management investment company. Its investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation equity and mezzanine tranches. Sound Point Meridian Capital Inc. is based in NEW YORK.

Sound Point Meridian Capital Q1 26/27 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: Net investment income was below distributions at $0.24 per share versus $0.60 paid, driven by spread tightening and higher modeled loss reserves for AI-impacted software loans.
• Negative Sentiment: The company cut its planned monthly distribution to $0.13 per share for Q4 2026 from $0.20 in Q3, reflecting income compression and a desire to preserve balance-sheet flexibility.
• Positive Sentiment: NAV per share rose to $9.88 from $9.63, supported by unrealized appreciation in CLO equity investments; portfolio GAAP yield also improved to 9.8% from 9.1%, with management citing approximately 10.1% in July.
• Positive Sentiment: Management is rotating from lower-yielding or higher-risk CLO equity into secondary-market positions, which it says can offer mid- to high-teens yields; year-to-date trading has added roughly 100 basis points of portfolio yield.
• Neutral Sentiment: AI-related software exposure represents roughly 10%–12% of the look-through portfolio, and the company is reducing exposure to the most vulnerable individual credits while favoring defensive sectors and monitoring broader credit-market volatility.

Presentation

[Operator]

I will now hand the conference over to Julie Smith, Head of Investor Relations. Julie, please go ahead.

[Julie Smith, Head of Investor Relations at Sound Point Meridian Capital]

Ladies and gentlemen, thank you for standing by. Sound Point Meridian Capital refers participants on this call to the investor webpage at www.soundpointmeridiancap.com for the press release, investor information and filings with the Securities and Exchange Commission, and for a discussion of the risks that can affect the business. Sound Point Meridian Capital specifically refers participants to the presentation furnished today on the Form 8-K with the SEC, and to remind listeners that some of the comments today may contain forward-looking statements, and as such, will be subject to risks and uncertainties which, if they materialize, could materially affect results. Reference is made to the section titled "Forward-Looking Statements" in the company's earnings press release for the latest quarter end, which is incorporated herein by reference.

[Julie Smith, Head of Investor Relations at Sound Point Meridian Capital]

We note forward-looking statements, whether written or oral, include but are not limited to Sound Point Meridian Capital's expectation or prediction of financial and business performance and conditions, as well as its competitive and industry outlook. Forward-looking statements are subject to risks, uncertainties, and assumptions which, if they materialize, could materially affect results. Such forward-looking statements do not guarantee performance, and Sound Point Meridian Capital gives no such assurances.

[Julie Smith, Head of Investor Relations at Sound Point Meridian Capital]

Sound Point Meridian Capital is under no obligation and expressly disclaims any obligation to update, alter, or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, historical data pertaining to the operating results and other performance indicators applicable to Sound Point Meridian Capital are not necessarily indicative of results to be achieved in succeeding periods. I will now turn the call over to Ujjaval Desai, Chief Executive Officer of Sound Point Meridian Capital.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Thank you to everyone joining us today, and welcome to the Sound Point Meridian Capital earnings call for the first fiscal quarter ended June 30th, 2026. We'd like to invite you to download our investor presentation from our website, which provides additional information about the company and our portfolio. With me today is our Chief Financial Officer, Dan Fabian, and after our prepared remarks, we'll open the call to your questions. For the first fiscal quarter ended June 30th, 2026, we generated net investment income or NII of $5 million or $0.24 a share, and paid distributions of $0.60 per share during the quarter. Despite the successful refinancing of CLO transactions in the portfolio over the past quarter, NII remained below common distributions due to spread tightening and higher modeled loss reserves for AI-impacted software loans within our CLO collateral portfolios.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Net asset value or NAV per share ended the quarter at $9.88, up from $9.63 as of March 31st, 2026. The NAV increase was primarily driven by net unrealized appreciation in the fair value of our CLO equity investments, partially offset by distributions paid in excess of NII. As of quarter end, our CLO equity portfolio's weighted average GAAP yield was 9.8% versus 9.1% in the prior quarter. Our portfolio remains highly diversified with investments across 108 CLOs managed by 31 different managers, providing exposure to over 1,500 underlying loans, spanning more than 30 industries on a look-through basis. In an environment characterized by increasing dispersion across sectors, we believe this level of diversification remains an important component of our risk management approach.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Subsequent to quarter end, we announced monthly distributions for calendar Q4 2026 of $0.13 per share, down from our previously announced Q3 2026 monthly distribution of $0.20 per share. In setting the revised distribution level, the board considered a range of factors, including current and expected portfolio yield, the importance of maintaining balance sheet flexibility, and our objective of supporting net asset value over time while earning our distribution through net investment income. Subsequent to quarter end, Sound Point, as the advisor for SPMC, proposed a base management and incentive fee waiver for the six-month period beginning July 1st, 2026 and ending on December 31st, 2026. The fee waiver will reduce the annual base management fee from 1.75% to 1.5% and will reduce the annual incentive fee from 20% to 15% of pre-incentive net investment income.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

In recognition of the unprecedented income compression faced by the CLO equity asset class, the advisor proposed this fee waiver to help reduce the expense burden on the company while we work to increase our income through loan spread improvement, refinancing of our liabilities, and active trading of our investments. I'll now turn the call over to Dan for a more detailed review of our financial highlights for the quarter before I share thoughts on the overall market.

[Dan Fabian, CFO at Sound Point Meridian Capital]

Thanks, Ujjaval, and welcome everyone. As Ujjaval mentioned, for the quarter ended June 30, 2026, we delivered net investment income of $5 million or $0.24 per share. During the quarter, we purchased 13 equity investments in the secondary market with a cost of $16.1 million and a weighted average yield of 20.2%. In addition, we sold seven equity investments, generating $23.3 million in cash proceeds with a weighted average yield of 8.5%. We refinanced the liabilities of 13 CLO equity investments, resulting in a weighted average debt cost savings of 37 basis points. For the quarter ended June 30, 2026, we recorded a net realized loss of $12.8 million and an unrealized gain on investments of $25.2 million. Total expenses during the quarter were $7.4 million. The GAAP net income for the quarter was $17.5 million, or $0.83 per share.

[Dan Fabian, CFO at Sound Point Meridian Capital]

Moving to our balance sheet, as of June 30, 2026, total assets were $384.7 million, net assets were $208.1 million, and our net asset value stood at $9.88 per share. The fair value of our investment portfolio stood at $363.2 million, while available liquidity, which consisted of cash, was approximately $21 million at the end of the quarter. As of June 30, 2026, the company's leverage ratio was 45.7% of total assets. During the quarter, we declared monthly cash distributions of $0.20 per share, payable at the end of July, August, and September. Based on our share price as of June 30, 2026, this represents an annualized distribution rate of 24.2%. As of July 31, 2026, our estimated range of the net asset value per common share was between $9.56 and $9.66. I will now turn it back to Ujjaval.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Thanks, Dan. Before we move into Q&A, I wanted to take a moment to touch on the recent market backdrop for corporate loans and CLO equity. The Q2 of 2026 saw the bifurcation across U.S. credit markets become more pronounced. Coming into the quarter, we had expected some continuation of the pickup in M&A-related issuance that began to build up in the Q1, but that expectation was tempered by a Federal Reserve that has shelved rate cuts and energy-driven inflation shock tied to the conflict in the Middle East, and continuing concerns around the AI-driven disruption in the software sector. Against that backdrop, the new issued leverage loan market proved more resilient than the macro headlines would suggest, as corporate borrowers stepped in to fill the void left by the pullback in sponsor-backed activity.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

U.S. institutional leveraged loan activity totaled about $224 billion in the Q2, down 7% from the Q1, but still running 17% above the five-year quarterly average. Most of that decline was driven by a slowdown in private equity deal-making, with overall PE deal volume down 38% quarter-over-quarter, the lowest level in two and a half years. Sponsors, for their part, remain focused on balance sheet defense, with nearly 75% of H1 primary market deals related to extend and amend transactions as sponsors turn their attention to the 2028 maturity wall. Market technicals also remained challenged during the quarter. Investor demand fell to the weakest reading since the Q4 of 2023, driven almost entirely by a broader pullback in CLO issuance, which loan funds flows were insufficient to offset.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

As a result, the market was left in a rough supply-demand equilibrium with a modest $2 billion surplus. While this marks a dramatic improvement from the nearly $60 billion supply shortage in Q1, net new supply is still heavily skewed towards the higher-rated, lower-yielding credits. This compresses the spread differential and makes the arbitrage CLO equity investors require difficult to attain. Against this backdrop, spreads widened meaningfully at the bottom of the credit spectrum, while remaining largely unchanged higher up. In the broadly syndicated loan market, B- spreads widened by 55 basis points since the Q4 of 2025 to 409 basis points over SOFR, while BB- spreads and B- spreads moved by five basis points or less. Loan prices told a similar story.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

The average bid on performing software loan slipped to 85.62 by quarter end, down more than two points from March levels, while the broader loan index moved into positive territory, up 1.29% year-to-date. The divergence reflects continued concerns around AI-driven disruption in the software sector, which has reduced new software issuance to just 8.8% of broadly syndicated volume year-to-date, the lowest share since 2013. CLO issuance slowed further during the quarter, with managers pricing $33.3 billion across 72 transactions, the lowest quarterly volume since the Q4 of 2023, and roughly 20% behind last year's pace. Issuance troughed at $6.2 billion in April, before rebounding to $16.8 billion in May and holding through June.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Refinancing and reset activity, by contrast, remained a bright spot, with combined volume of $93.7 billion, well above the $56.2 billion in the Q1, as managers increasingly rolled maturing deals into refinancing and reset trades rather than fully liquidating structures. Looking ahead, the direction of credit markets in the H2 of 2026 will likely depend on a recovery in private equity deal-making, which remains the primary engine of net new loan supply, as well as on how interest rates, geopolitical developments, and AI-driven disruption concerns evolve from here. Post quarter end, energy markets have begun to stabilize, with a tentative U.S., Iran peace deal bringing oil prices back below $80 a barrel. However, a lasting resolution to the conflict has yet to be reached.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Although pricing around the software space has not meaningfully improved from the beginning of the quarter, we believe that certain CLO managers and portfolios are better positioned than others to manage the risks presented by the increasing impact of AI. On loans with shorter maturities, we are beginning to see positive signs of amend and extend activity, which has the potential to increase yield in underlying CLO collateral portfolios and to improve the arbitrage available to CLO equity. Companies have begun tapping both public and private markets to fund artificial intelligence spending, which we believe will increase loan supply for CLO portfolios in the H2 of 2026 and beyond. On the other side of the CLO balance sheet, funding costs remained broadly stable during the quarter, with average AAA coupons around 124 basis points or SOFR, though top-tier managers continue to price meaningfully inside bottom-tier managers.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

We believe this continues to support the refinancing and reset optionality across our portfolio as we move through the remainder of 2026. From a portfolio management perspective, we continue to sell CLO equity with limited near-term optionality and greater downside risk while adding better quality secondary investments. This portfolio rotation is expected to increase our risk-adjusted yield. The secondary equity market continues to offer much better investment opportunities than in primary due to compressed arbitrage in that market.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

We feel the arbitrage for primary equity will improve over time, and we remain ready to participate in that space given our strength in sourcing, structuring, and credit underwriting. While we expect the volatility to continue in our space, we are seeing some improvement in market sentiment around CLO equity, with prospects for increased cash flow from loan spread improvement and liability refinancings. With that, we thank you for your time today and will now open the call up to questions. Operator.

[Operator]

We will now begin the question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Gaurav Mehta with Alliance Global Partners. Your line is open. Please go ahead.

[Gaurav Mehta, Analyst at Alliance Global Partners]

Thank you. Good morning. I wanted to ask you on the new dividend rate of $0.13 per month. When you got to that number, what kind of factors you consider given that that number is still higher than the NII that you guys reported for this quarter?

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Hi, Gaurav. Yes, in terms of the distribution rate of $0.13 per share, obviously a lot of factors go into that. As I mentioned in my remarks, some of the factors that are quite important there include the portfolio mix today, our expected yields going forward, as well as portfolio rotation that we are doing in the portfolio already. Just to give you the different components of that, as I mentioned, we are seeing some signs of loan spreads improving, which is very helpful because that obviously goes straight to the bottom line for CLO equity. Also, we continue to do resets and refis of our portfolio. As I mentioned, we have done 13 transactions in this last quarter.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

We have a table in our presentation that you have seen, which outlines the existing mix of our portfolio in terms of how many deals can be reset, refinanced over the next few quarters. There is a substantial portion of the portfolio can be refinanced tighter. That also helps improve the portfolio yield going forward. Lastly, the trading activity we mentioned. Just to put some numbers around that, we have traded year-to-date in this SPMC portfolio. We have sold around $50 million. Sorry, we have sold about $35 million and purchased around $50 million of secondary positions. That rotation has been very accretive. We have added about 100 basis points of yield through that rotation. Those are the three components that we considered in figuring out what the go-forward portfolio yield would be. You have already seen some uptick in the portfolio yields.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

As we reported, we had about 9.1% in the previous quarter. The yield is now 9.8%. For July, we are seeing current go-forward yields around 10.1% of the portfolio. There is some improvement in the yield, which over time we think will result in higher NII for the portfolio. That is what we considered in coming up with a number. Obviously, there are a lot of variables that go into that, but those are some of the key variables we looked at.

[Gaurav Mehta, Analyst at Alliance Global Partners]

All right. Thanks for those details. Second question, can you maybe provide some color on how much exposure you guys have to software sector that is impacted by AI, and how do you plan to manage that exposure?

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Yeah. So that's obviously a very topical question, and we have been very focused on AI exposure since the concerns came up earlier this year. Roughly, I would say about 10%-12% of the portfolio is going to be exposed to software credits. This is on the look-through basis. But the reality is that not all these credits are the same. You have to really go into and look at the underlying portfolio, the underlying credits, and try to figure out which subsector they're in. We mentioned on our previous call, we have conducted extensive analysis, credit by credit re-underwriting of our portfolio to identify which names are likely to be impacted going forward.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

We have used that credit underwriting results to then make trades in the portfolio to try to reduce risk to the most impacted AI names. At a sector level, we're more concerned about the individual names, not the sector exposure itself. So the sector exposure might still stay in that 10%-12% range, but the goal has been to reduce the tougher names within that sector so that we have less tail risk in the portfolio going forward.

[Gaurav Mehta, Analyst at Alliance Global Partners]

All right. Thanks for those details. That's all I had.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Thanks.

[Operator]

Your next question comes from Erik Zwick with Lucid Capital Markets. Your line is open. Please go ahead.

[Erik Zwick, Analyst at Lucid Capital Markets]

Thank you. Good morning. Let me first of all just start with a bit of a follow-up on Gaurav's question on SOFR. Ujjaval, you mentioned in your comments that, I think year-to-date for new CLO issuance, the share of SOFR was, I think 8.8% if I got that number down right, 8.8%, lowest level since 2013. Just to put that into context, what was that percentage over the past two or three years? How much higher was that?

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Hi, Erik. I will have to get that number for you in the previous year, but I will follow up with that answer. It is-

[Erik Zwick, Analyst at Lucid Capital Markets]

Okay.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Obviously significantly low, right?

[Erik Zwick, Analyst at Lucid Capital Markets]

Yeah.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Just looking at the typical portfolios, kind of 10%-15% SOFR exposure. So my guess is the new issue market was probably in that 15%-20% range, but we will have to get back to you with the exact number.

[Erik Zwick, Analyst at Lucid Capital Markets]

Yep, that makes sense. That ballpark is good. Thank you. Just thinking about your priorities going forward, you mentioned the secondary market continues to offer some opportunities, although volume is a little bit lower. Your cash position has built up a little bit, I think $21 million at the end of the quarter. How are you just thinking about the opportunity between new investments in additional CLOs for relative value opportunities versus maybe paying down the revolver a little bit? Just kind of curious how you're thinking about capital deployment here in the near term.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Yeah, I think that's a great question. We are very much focused on this rotation trade, trying to reduce risk in the portfolio and also boost yields going forward. The first leg of that is obviously doing the actual sales of deals that we want to sell out of the portfolio. Then, we line up purchases that make sense. So there's usually a delay in deploying that capital. We want to be careful around the deployment, so we will take the time needed to do that. And you're right, we have about $21 million of cash. Depending on market opportunity going forward, we will deploy that in better quality, higher yielding investments. And we're seeing plenty of opportunities in the secondary market right now at mid to high teens type of yields. These are good, strong equity positions, tier one managers we like.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

There's plenty available, and we are being very careful. But we're looking in the market every day to try to find the best opportunities there. I think the focus, again, has been exclusively on secondary investments. Primary equity returns are still not that great because the arbitrage doesn't look very healthy in new issue equity. We think new issue equity returns are probably in the kind of high single digit level, sort of 8%, 9% type of returns.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

While secondary equity, as I mentioned, can be high teens. So there's a significant pickup in secondary versus primary. And so that's really the focus. In terms of your question on liability management, we're obviously watching that very carefully, and we will evaluate how much leverage we can sustain. We have this revolver at the top which can be paid down and then reused, drawn when we need to. We are carefully managing that.

[Erik Zwick, Analyst at Lucid Capital Markets]

Thank you. I appreciate all the detail there. Just last question from me. Looking at the realized losses in the quarter, I think you mentioned the investments that you chose to sell had, I guess, lower optionality going forward. Less attractive. Maybe just describe it, the reinvestment periods were nearing their end, or were there other factors? Maybe just probably a little bit more color there would be helpful.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Yeah, sure. If you look at our weighted average reinvestment period in our portfolios, it's pretty long. It's among the longest in the market. We don't have too many investments that are nearing the end of the reinvestment period. These are still deals that have three years or so left in their investment period. That wasn't the concern, it's really just the It's not two types of deals. It's going to be either deals that we think are too tight from a yield perspective, based on the cash flow generation on a go-forward basis. If we feel that the price at which we can sell it is pretty strong, then we would do that and rotate into higher-yielding investments.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

The second type of trade would be deals where we're concerned about the portfolio quality deteriorating from here. That could be a combination of reasons. It could be manager underperformance. We very carefully evaluate managers on a monthly basis, so if we start to get concerned, it could be that. It could be our view on the underlying credits, maybe it's some of the softer names, and if we have a negative view on some of them, and if that has a material impact on future cash flows, then certainly that's another reason why we'd want to sell some business. Those are the two reasons.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

On the flip side, when we're looking to buy something, again, we're trying to find the best quality candidates we can get. In almost all cases, we're able to pick up on the base yield in our base case scenario, but significantly protect in the downside scenario. In case defaults pick up, what we are buying now is going to do extremely well compared to the stuff we are selling. That rotation, that pickup of value in the tail scenarios is also a very important consideration as we think about the relative value trades here.

[Erik Zwick, Analyst at Lucid Capital Markets]

That's very helpful. That's all for me. Thanks for taking my questions.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Of course. Thanks, Erik.

[Operator]

Your next question comes from the line of Timothy D'Agostino with B. Riley Securities. Your line is open. Please go ahead.

[Timothy D'Agostino, Analyst at B. Riley Securities]

Yeah. Hi. Thanks for taking the questions. Helpful commentary on primary versus secondary market, and then on software. It seems that you're going to keep the industry exposure to 10%-12% and just trim exposure to individual names. I guess stepping away from software and just looking at other underlying industries, is there anything you're leaning into, or you see value that's worth going after?

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Yes. I think we certainly prefer defensive sectors, right? Sort of less cyclical sectors, where there is better value going forward. I think when we look at that, we talk to all our managers and try to identify those sectors. And the sector mix changes all the time. So things like, if it's like cable or healthcare, things like that, those tend to do quite well. The tougher sectors being the cyclical ones, retail, it's going to be obviously oil and gas is a concern these days.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

And then, you got the software sector as well. So those are some consumer sectors as well we're trying to stay away from. But I think again, at the end of the day, it's really, for us, talking to all these managers that we invested with, keeping track of where they're seeing value, and where they're seeing concerns, and then managing our portfolio according to that. That's really the approach we take.

[Timothy D'Agostino, Analyst at B. Riley Securities]

Okay. Understood. This is the second one from my end. Regarding the fee waiver, in the press release, you talked about it going to the end of calendar year 2026. I guess, looking to 2027, is there a possibility of that agreement to be extended, or is it really just for that set period? Thank you.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Well, yeah, obviously we can't predict where things are going to be. I think the main thing here is the reason for that fee waiver, right? It's really us being proactive in trying to signal to our investors that, look, we are fully aligned. We appreciate that the market has been very difficult over the last year and a half, probably the worst it's been for CLO equity, as far as I can remember, away from real credit cycles like the 2008, 2009 financial crisis. We recognize that there is spread compression, which has resulted in significantly lower cash flows on CLO equity. As a result, our income has gone down as well. So our focus right now is really on reducing expenses in the structure while we work to improve the income of the portfolio.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

As we do that, we thought the best way to get ourselves in a stronger position would be to cut our fees for the six-month period. We think that's how long it will take for us to finish our rotation, obviously, market conditions permitting. If we can do that, and we can get to The goal is to get to a position where we can earn our dividend, right? So the NII of the portfolio kind of needs to get to that $0.13 type of level, which is what we're trying to do.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

That's why we have set this timeframe for the waiver. We'll review it at the end of the year and see where we go from there. I think that's just, again, trying to be proactive and we're not just focused on fees, but also other expenses as well, and trying to make sure that we tighten the belt as much as possible so that we can have the most amount flowing to our shareholders.

[Timothy D'Agostino, Analyst at B. Riley Securities]

Okay. Thank you so much for the color. I appreciate you taking the questions.

[Ujjaval Desai, CEO at Sound Point Meridian Capital]

Of course. Thank you.

[Operator]

There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect.

Participants

Executives

• Julie Smith, Head of Investor Relations
• Ujjaval Desai, CEO
• Dan Fabian, CFO

Analysts

• Gaurav Mehta, Analyst at Alliance Global Partners
• Erik Zwick, Analyst at Lucid Capital Markets
• Timothy D'Agostino, Analyst at B. Riley Securities