Stock Analysis & Valuation Carlyle Credit Income Fund (CCIF)

• Previous Close: $4.52
• Sector Valuation Confidence Level: High

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	1474.22	32515
Intrinsic value (DCF)	19.85	339
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Carlyle Credit Income Fund (CCIF) is a closed-end fixed-income mutual fund managed by Vertical Capital Asset Management, LLC, with co-management by Behringer Advisors, LLC. Focused on income generation, CCIF primarily invests in fixed-income securities across diversified sectors, benchmarking its performance against the Barclays Capital U.S. Mortgage Backed Securities Index. Launched in 2011 and domiciled in the U.S., CCIF operates within the Financial Services sector, specifically in Asset Management - Income. The fund aims to provide investors with stable returns through a diversified portfolio of mortgage-backed and other fixed-income securities. With a market capitalization of approximately $110 million, CCIF appeals to income-focused investors seeking exposure to structured credit markets while benefiting from Carlyle’s institutional expertise in credit investing.

Investment Summary

Carlyle Credit Income Fund (CCIF) presents an attractive option for income-seeking investors, offering a dividend yield of $1.26 per share and a diluted EPS of $0.36. The fund’s low beta (0.26) suggests lower volatility relative to the broader market, making it a potential defensive play. However, negative operating cash flow (-$74.6M) raises liquidity concerns, though the absence of debt mitigates some risk. Investors should weigh the fund’s income stability against its reliance on mortgage-backed securities, which may face headwinds from interest rate fluctuations. The fund’s niche focus and Carlyle’s credit management expertise provide differentiation, but competition in fixed-income asset management remains intense.

Competitive Analysis

Carlyle Credit Income Fund (CCIF) differentiates itself through its specialized focus on mortgage-backed securities (MBS) and structured credit, leveraging Carlyle’s institutional credit expertise. Its benchmark alignment with the Barclays U.S. MBS Index ensures transparency and targeted performance. However, CCIF operates in a crowded fixed-income asset management space, where scale and diversification often dictate competitiveness. The fund’s small size ($110M market cap) limits its ability to deploy capital at scale compared to larger peers. Its zero-debt structure is a strength, but negative operating cash flow suggests potential liquidity constraints. CCIF’s competitive edge lies in its niche strategy and Carlyle’s brand, but it lacks the broad product suite or global reach of larger asset managers. Its performance is highly tied to the U.S. housing market and interest rate trends, which could be a vulnerability in volatile rate environments.

Major Competitors

• PennantPark Floating Rate Capital (PFLT): PFLT focuses on floating-rate loans, offering interest rate resilience—a contrast to CCIF’s MBS-heavy portfolio. Its larger AUM provides diversification but exposes it to corporate credit risk. PFLT’s higher yield may attract investors away from CCIF.
• PIMCO Dynamic Credit Income Fund (PCI): PCI leverages PIMCO’s global credit platform, offering broader diversification than CCIF. Its active management and multi-sector approach outperform in volatile markets but come with higher fees, a trade-off CCIF avoids with its simpler strategy.
• DoubleLine Income Solutions Fund (DSL): DSL, managed by DoubleLine Capital, emphasizes high-yield and emerging market debt, competing with CCIF for income investors. Its global reach and DoubleLine’s reputation are strengths, but CCIF’s U.S.-focused MBS strategy offers more predictability.
• Nuveen Mortgage and Income Fund (JLS): JLS also targets mortgage-backed securities, directly competing with CCIF. Nuveen’s larger scale and resources give it an edge in sourcing deals, but CCIF’s Carlyle affiliation provides credibility in structured credit.