March 2026 Income Charlie

💵 $978.49 Collected

in Cash this Month (+1.00%)

This Month in Review:

When Prices Fall Faster Than Reality

March was another month where the market seemed determined to tell a dramatic story.

Account value declined again, moving from $97,886.50 to $95,056.41, driven by a $3,808.58 drop in market value. For anyone watching only the screen, it felt like something serious must be breaking.

Yet nothing meaningful broke.

We collected $978.49 in cash income during the month. Almost exactly one percent of starting capital. The payments arrived across nearly every position. No wave of missed distributions. No collapse in income coverage. No sudden halt in the economic engine beneath these securities.

Instead, what we are seeing is something much more familiar.

Markets are repricing risk far faster than fundamentals are changing.

Private credit funds, CLO vehicles, and specialty finance companies are being priced as if we are already deep into a severe credit event. Yields on some holdings now imply default rates that are far above what current data supports. Discounts have widened beyond what underlying cashflows justify.

In other words, the market is reacting emotionally while the underlying businesses continue operating normally.

This gap between perception and reality is uncomfortable. It is also where opportunity tends to emerge.

The key distinction is this.

Markets react instantly. Cashflows adjust slowly.

We are not ignoring risk. Credit cycles do turn. Losses do happen. But the current pricing suggests a level of deterioration that simply is not yet visible in the actual income streams we are receiving.

That disconnect is the story of this month.

Our Guiding Principle

We are not trying to beat the market. We are trying to get paid by it.

Eight to ten percent a year in cash remains the objective.

The portfolio rests on four income pillars, each composed of positions that convert real economic activity into steady distributions.

Prices move. Payments matter.

Credit and Lending Income

This pillar continues to carry the weight of the portfolio. It is also where the largest pricing disconnect is currently happening.

Sub Pillar	Allocation	Yield	Cash
Core Credit	35%	8.0%	$286
Opportunistic Credit	23%	12.0%	$235

Credit Holdings and Prices as of
March 31, 2026

Symbol	Name	Price	Type
ARDC	Ares Dynamic Credit Allocation	$12.16	Credit fund
BBDC	Barings BDC	$8.23	BDC
BCSF	Bain Capital Specialty Finance	$12.40	BDC
KIO	KKR Income Opportunities	$11.00	Credit fund
ISD	PGIM High Yield Bond	$13.16	Credit fund
GHY	PGIM Global High Yield	$11.65	Credit fund
DHY	Credit Suisse High Yield	$1.90	Credit fund
DHF	BNY Mellon High Yield	$2.44	Credit fund
ECC	Eagle Point Credit	$3.76	CLO
EIC	Eagle Point Income	$9.44	CLO
FSCO	FS Credit Opportunities	$5.10	Private credit
FSK	FS KKR Capital	$10.18	BDC
CCIF	Carlyle Credit Income	$3.21	Credit CLO
BGH	Barings Global Short Duration	$13.66	Credit fund
PBDC	Putnam BDC Income ETF	$27.58	ETF
BIZD	VanEck BDC Income ETF	$12.80	ETF
OBDC	Blue Owl Capital Corp	$11.06	BDC

Several of these securities now trade at yields that historically only appear during periods of severe credit distress. Yet distributions continue to be paid.

This is the type of environment where disciplined investors begin to lean in rather than step back.

⚡️ Equity Income and Dividend Harvesters

This pillar held up relatively well compared to credit. Income continues to flow from real assets and option strategies.

Sub Pillar	Allocation	Yield	Cash
Hard Asset Income	14%	8.5%	$119
Option and Dividend Income	13%	8.0%	$106

Equity Holdings and Prices as of

March 31, 2026

Symbol	Name	Price	Type
UTF	Cohen and Steers Infrastructure	$25.88	Infrastructure
DPG	Duff and Phelps Utility and Infrastructure	$14.44	Utilities
PGZ	Principal Real Estate Income	$9.61	Real estate
RLTY	Cohen and Steers Real Estate	$14.54	REIT
EXG	Eaton Vance Tax Managed Global	$8.66	Covered call
ETV	Eaton Vance Tax Managed Equity	$13.67	Covered call
BDJ	BlackRock Enhanced Equity Dividend	$8.62	Equity income
ADX	Adams Diversified Equity	$21.89	Core equity
ASG	Liberty All Star Growth	$4.75	Growth income
NIE	Virtus Equity and Convertible	$23.36	Convertible equity
SPE	Special Opportunities Fund	$13.76	Hybrid income

Opportunistic and Contrarian Value

This pillar reflects the market's emotional swings most directly. It continues to pay while prices adjust.

Allocation	Yield	Cash
8%	10.0%	$83

Opportunistic Holdings and Prices

Symbol	Name	Price	Type
BRW	Saba Capital Income Opportunities	$6.74	Discount CEF
SPE	Special Opportunities Fund	$13.76	Deep value
RMT	Royce Micro Cap Trust	$11.31	Small cap value
ASG	Liberty All Star Growth	$4.75	Growth income

Cash and Reserves

Cash increased to $9,768.42, now about 10 percent of the portfolio. That gives us flexibility at a time when opportunities are becoming more attractive.

Visual Summary of March Cash Contributions

Credit and Lending Income		$521
Equity Income and Dividend		$225
Opportunistic and Contrarian		$83
Cash and Reserves		$4
Each full bar represents approximately $521 in March cash contributions.

What We Are Buying and Watching

Private credit funds trading at historically wide discounts

CLO vehicles priced for extreme outcomes

BDCs with stable income but depressed valuations

An upcoming opportunity in the energy sector through a closed-end fund

We are preparing to add a new energy-focused closed-end fund to the portfolio. The sector offers strong cash generation tied to real assets, and pricing has become attractive relative to underlying fundamentals. As always, we will send an email when we make the purchase so subscribers can follow along.

Looking Ahead

April income should remain near the current run rate, though distribution timing will vary.

The larger picture remains clear.

Markets are reacting faster than fundamentals.

Cashflows are proving far more stable than prices suggest.

That gap will not remain forever.

Until then, we will continue to collect, reinvest, and stay disciplined.

Until next month,

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