Palmer Square Capital Bdc Inc. · NYSE:PSBD
Palmer Square Capital Bdc — Investor Day (September 2025)
29 slides from Palmer Square Capital Bdc's investor day presentation, Sep 3, 2025
Slide 1: Palmer Square Investor Forum
Palmer Square Investor Forum Palmer Square Capital BDC Inc. (NYSE: PSBD) September 2025
Slide 2: Forward-looking Statements
Forward - looking Statements © Palmer Square Capital Management LLC 2 This presentation and any information communicated during any delivery of the presentation and any question and answer session and any document or material distributed at or in connection with the presentation (collectively, the “
Slide 3: Investor Forum Schedule
Investor Forum Schedule Stadium Tour 11:00am Lunch 11:30am Program Begins 12:00pm Palmer Square’s Differentiated Platform Chris Long, CEO & Chairman 12:30pm PSBD Portfolio G Investment Strategy Angie Long, CIO 1:00pm Investment Process G Case Study Matt Bloomfield, President 1:30pm Management Firesi
Slide 4: Palmer Square's Differentiated Platform
Palmer Square’s Differentiated Platform Chris Long CEO & Chairman SESSION 1
Slide 5: Palmer Square Capital Management Overview
$3CB Assets Under Management 200G Founded by Chris Long Chairman and Chief Executive Officer of PSBD Top 2 Globally for total U.S. based CLO issuance 2022 – 2024 1 $C0B+ Capital Invested Since Inception 100% Management owned 74 Professionals, including 31 investment professionals G5% Client retentio
Slide 6: AUM growth and firm milestones
DIFFERENTIATED PLATFORM $33 $184 $335 $CC1 $2,00G $3,240 $3,7G8 $3,G11 $4,C72 $8,484 $10,341 $13,G71 $20,55G $25,41C $2G,485 $33,20G $35,8C1 80 70 60 50 40 30 20 10 0 200G 2010 2011 2012 2013 2014 2015 2016 2017 2018 201G 2020 2021 2022 2023 2024 2025 AUM (millions) Employees © Palmer Square Capital
Slide 7: Differentiated platform: capability and agility
▪ Our extensive track record demonstrates the ability to find the best relative value opportunities across corporate and structured credit. ▪ Our exceptionally low loss rates across strategies reflect a high - quality bias and emphasis on risk management. ▪ Size and scale to look at a wide range of
Slide 8: Investment Philosophy
Palmer Square believes active management in fixed income is paramount, and with effective execution should capture total return in excess of yield. Our depth of experience, quality of research, and commitment to process position us for this type of performance. DIFFERENTIATED PLATFORM 3 Maintain Liq
Slide 9: Palmer Square's Comprehensive Credit Platform
© Palmer Square Capital Management LLC G DIFFERENTIATED PLATFORM Income / Short IG Duration Private Credit / Structured Credit $2.G $8.4 $15.7 $2.3 $1.5 $4.1 $0.G Palmer Square’s Comprehensive Credit Platform Income Plus Strategy $27.0 $3.8 $5.1 $ 36B Opportunistic Credit Strategy Multi - Asset Cred
Slide 10: CLO Volume Beats Most Large Alternative Asset Managers
U.S. Deals # of Deals Size 2022 - 2024 30 $15.7B 24 $13.GB 22 $11.2B 20 $10.6B As of 06/30/2025. Source: S&P LCD and Palmer Square. The data includes all deals and managers in the CLO market except for Middle Market deals. 4 Palmer Square 6/30/25. 5 Source: CreditFlux. DIFFERENTIATED PLATFORM CLO Vo
Slide 11: CLO manager ranking and credit quality
Source: Kanerai, Intex and Barclays Research. Palmer Square did not compensate Barclays directly or indirectly for the ranking above. These ratings are an averaged sample of Palmer Square’s CLO purchasing activity and are not representative of any one client’s experience. Past performance does not g
Slide 12: PSCM's Expertise Puts PSBD in a Position to Succeed
PSCM’s Expertise Puts PSBD in a Position to Succeed Launched in 201G and publicly listed in 2024, Palmer Square Capital BDC Inc. (PSBD) offers a: Liquid investment strategy ▪ Broadly Syndicated Loans (BSLs) represent a sizable primary market and deeply liquid secondary market ▪ Tactical adjustments
Slide 13: PSBD Portfolio & Investment Strategy
PSBD Portfolio G Investment Strategy Angie Long CIO SESSION 2
Slide 14: PSBD portfolio and investment strategy at a glance
Note: All figures as of 6/30/2025. 14 Includes fair value of short - term investments. 15 Attributes of first lien borrowers. 16 Represents a weighted average yield to maturity at fair value for all debt and income producing securities. 17 Average hold size of first and second lien investments at fa
Slide 15: PSBD Investment Strategy
PORTFOLIO & INVESTMENT STRATEGY Consistent investment philosophy throughout multiple credit environments underpinned by core competencies: locating relative value and granular, bottom - up fundamental credit analysis Attractive risk adjusted returns through a highly liquid strategy Investment Criter
Slide 16: Large & Liquid Addressable Market
SGP/LSTA Leveraged Loan Index A nearly $2T market accessed via primary and secondary market offers significant opportunity for active management U.S. Leveraged Loan Volume An unprecedented rate hiking cycle temporarily slowed down issuance in the syndicated loan market but since normalized Note: Dat
Slide 17: Asset Class Yields
▪ Compared to other liquid fixed income options, bank loans offer a leading yield profile and low default rate ▪ Private credit’s illiquidity premium to bank loan yields has compressed considerably Source: Bloomberg, Palmer Square. PSBD dividend yield and YTW yields for all others. YTW Yields as of
Slide 18: Historically Low Loss Rates
Source: JP Morgan Research, S&P LCD, Palmer Square from 12/31/2013 - 6/30/2025. 18 Palmer Square average annual loss ratio calculated by dividing total par losses for previous 12 - month period by Total CLO AUM at the end of the period. 1G Industry average loss ratio calculated by dividing total par
Slide 19: Well Diversified Portfolio Across Metrics
© Palmer Square Capital Management LLC 1G Note: Data as of 06/30/2025. 20 As a percentage of total income producing securities at fair value. PORTFOLIO & INVESTMENT STRATEGY Highly diversified portfolio by industry and borrower, oriented towards first lien senior secured loans. Portfolio at Fair Val
Slide 20: PSBD's Portfolio Stacks up Well Against Competition
Non - Accrual % 0.7% 1.2% 3.0% 0.1% 0.3% 0.2% 0.3% 1.2% 0.C% 1.8% 2.0% 5.3% BXSL PSBD GBDC OBDC ARCC FSK at Fair Value at Cost Note: Data as of 06/30/2025. 21 Comparable companies include top five publicly traded BDCs by assets. 22 Money market balance removed from total investments for purpose of c
Slide 21: Strong Value Creation Through Bouts of Uncertainty
PORTFOLIO & INVESTMENT STRATEGY Strong Value Creation Through Bouts of Uncertainty PSBD has offered meaningful economic benefit combined with transparency since inception 10.8% 10.C% 10.4% 10.4% G.7% BXSL PSBD FSK OBDC GBDC ARCC NAV Dividend Yield 24 11.3% $20.0 $20.2 $20.1 $15.0 $1.0 $2.4 $4.3 $20.
Slide 22: Strong Shareholder Alignment
0.7% 1.0% 1.0% 1.4% 1.4% 1.5% PSBD GBDC BXSL OBDC FSK ARCC ▪ Income incentive fee of 12.5% compares to 15% - 20% across peers & incorporates lookback on net realized losses on a trailing 1 - year and 3 - year basis ▪ Clearly communicated dividend policy designed to offer a predictable distribution ▪
Slide 23: Investment Process & Case Study
Investment Process G Case Study Matt Bloomfield President SESSION 3
Slide 24: Consistent Investment Process Focused on Principal Preservation
Consistent Investment Process Focused on Principal Preservation INVESTMENT PROCESS Palmer Square Portfolio Management Principles Investment Selection Process 1 Cross - asset relative value, macro, and top - down industry analysis serve as a key tool which then directs the firm’s granular, bottom - u
Slide 25: Credit Selection Combines Top-Down and Bottom-Up Analysis
Credit Selection Combines Top - Down and Bottom - Up Analysis INVESTMENT PROCESS Comprehensive Top - Down Analysis Fundamental Credit Analysis – Corporate Credit Global credit outlook, phase of the business cycle, financial market indicators, M&A/LBO environment Macro Analysis Analyze across loans,
Slide 26: Case Study 1: Aptean
Background Palmer Square has been a long - time lender to Aptean in the BSL market and PSBD participated in a private credit transaction in early 2024 as part of a private loan financing to (i) refinance the existing BSL structure and (ii) provide incremental debt to support an ongoing tuck - in acq
Slide 27: Case Study 2: Lightstone
Background Palmer Square’s broader lending platform initially became a lender to Lightstone in 2016 as part of the leveraged buyout by Blackstone and ArcLight. PSBD utilized the platform’s familiarity with Lightstone and became a lender via secondary market acquisition at a discount to par. Over tim
Slide 28: Management Fireside Chat
Management Fireside Chat MODERATED BY Ken Lee RBC Senior Equity Analyst SESSION 4
Slide 29: Management team
Christopher D. Long Chairman & Chief Executive Officer Angie K. Long Chief Investment Officer Matthew Bloomfield President
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