MSDL Q2 2026: Net income falls 78% to $7.9M on restructuring losses and yield compression

Filed August 6, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 7, 2025 · ~2 min read

Key Changes

• high

  Investment income fell 11% to $177.8M for the six months as weighted average portfolio yield compressed from 10.1% to 9.1% on declining base rates and repricings; non-accrual investments rose from 1.6% to 2.9% of portfolio.

  MD&A: Investment income decline verify on EDGAR →
• high

  Risk Rating 4 investments (substantial loss anticipated) increased from $36.6M (1.0% of portfolio) to $64.7M (1.8%), consistent with the rise in non-accruals and the two restructurings.

  MD&A: Risk rating 4 investments verify on EDGAR →
• high

  Quarterly distribution reduced 10% from $0.50 to $0.45 per share, reflecting lower net investment income ($78.7M vs $89.9M for six months) and higher unrealized losses.

  Notes: Quarterly distribution reduced verify on EDGAR →