Risk Factors Update Summary

• The target range for the federal funds rate increased from 4.25% to 5.50%.
• Concentration risk increased as the company may invest in relatively few CLOs with similar risk profiles.
• The availability of financing sources may be completely shut off, limiting funding options.
• The company's ability to pay dividends depends on operating results and financial condition.
• Failure by a CLO to satisfy certain tests may pressure investment performance and lead to losses.
• Changes in CLO collateral manager could lead to significant losses and impact dividend payments.
• CLO investments' illiquidity may result in price volatility and difficulty in valuation or selling, potentially causing greater losses.
• The company's investment strategy and guidelines can change without shareholder consent, impacting operations.
• Changes in investment strategy may affect REIT qualification and shareholder interests.
• Increased complexity in CLO investments may lead to disputes and unexpected results, affecting operations.
• Compliance with new ESG regulations may increase costs, affect business operations, and impact profitability.
• Failure to comply with rules, regulations, and stakeholder expectations could negatively impact reputation and business results.
• Investments in second-lien mortgage loans could result in significant losses.
• Increased regulatory burden related to ESG matters may require additional resources and affect profitability.