Herzfeld Credit Income Fund Inc Dossier
Qualitative Analysis
Business overview
Herzfeld Credit Income Fund, Inc. (formerly known as The Herzfeld Caribbean Basin Fund, Inc.) is a non-diversified, closed-end management investment company. Effective July 1, 2025, the Fund underwent a major strategic transformation, shifting its primary investment objective from a Caribbean Basin equity strategy to a credit-focused strategy. Its current primary objective is to maximize risk-adjusted total returns, with a secondary objective of generating high current income for stockholders. To achieve this, the Fund invests primarily in credit-related instruments, focusing on equity and junior debt tranches of collateralized loan obligations (CLOs) collateralized by below-investment-grade U.S. senior secured loans. The Fund is managed by its investment adviser, Thomas J. Herzfeld Advisors, Inc..
Research as of 20 Jun 2026
Strategic Initiatives
Growth programs, investments, and their expected impact
The Fund transitioned its core investment strategy from its legacy Caribbean Basin equity focus to a CLO Equity Strategy. Under this revised strategy, the Fund primarily invests in equity and junior debt tranches of collateralized loan obligations (CLOs) consisting of below-investment-grade U.S. senior secured loans.
Expected impact: Aims to maximize risk-adjusted total returns and generate high current income for stockholders by capturing stable carry and spread compression in CLO tranches.
The Board of Directors approved and implemented a 10-for-1 reverse stock split of the Fund's common stock to consolidate outstanding shares.
Expected impact: Designed to provide a better price point following NAV reductions from required distributions, appeal to a broader range of institutional investors, and lower trading costs.