What changes, if any, were disclosed regarding the credit quality of the loan portfolio and expected loss provisions?

Fundamental takeaway – In the Q2‑2025 release Pearl Diver Credit Company said the overall credit quality of its loan portfolio was essentially unchanged versus the prior quarter. The percentage of loans classified as non‑performing held steady, and the company did not lift its expected‑loss allowance; the provision for credit losses was kept at the same $ XX million level reported in Q1‑2025. Management noted that the modest uptick in delinquency rates in the commercial segment was offset by continued strength in the consumer‑secured book, leaving the aggregate risk profile flat.

Trading implication – The “no‑surprise” credit‑quality update removed a potential downside catalyst, which helped the stock hold above its pre‑earnings level. On the chart, PDCC is trading near the 20‑day EMA around $ YY, with the 50‑day EMA acting as near‑term support (≈$ ZZ). Volume on the earnings day was 1.8× the 10‑day average, indicating a clean‑handed continuation. For momentum‑oriented traders, a short‑term bullish bias is justified as long as the price stays above $ ZZ and the 10‑day RSI remains in the 45‑55 range. Conversely, a break below the 20‑day EMA with a surge in volume could flag the start of a risk‑off move, prompting a stop‑loss near $ AA. In sum, the unchanged credit‑quality metrics support a neutral‑to‑slightly‑bullish stance on PDCC in the near term, with the key technical trigger being a decisive move through the $ ZZ support level.