Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 212

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 212
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. In addition, if a currency devaluation is generally anticipated, the Company may not
be able to contract to sell currency at a price above the devaluation level it anticipates. The successful use of forward foreign currency
contracts as a hedging technique draws upon special skills and experience with respect to these instruments and usually depends on the
ability of the Adviser to forecast interest rate and currency exchange rate movements correctly. Should interest or exchange rates move
in an unexpected manner, the Company may not achieve the anticipated benefits of forward foreign currency contracts or may realize losses
and thus be in a worse position than if those strategies had not been used. Many forward foreign currency contracts are subject to no
daily price fluctuation limits so adverse market movements could continue with respect to those contracts to an unlimited extent over
a period of time.

Futures Contracts and Options on Futures Contracts. Futures contracts (also called “futures”) provide for the future sale by one party and purchase
by another party of a specified amount of a specific security at a specified future time and at a specified price. An option on a futures
contract gives the purchaser the right, in exchange for a premium, to assume a position in a futures contract at a specified exercise
price during the term of the option. An index futures contract is a bilateral agreement pursuant to which two parties agree to take or
make delivery of an amount of cash equal to a specified dollar amount times the difference between the index value at the close of trading
of the contract and the price at which the futures contract is originally struck. No physical delivery of the securities comprising the
index is made, and generally contracts are closed out prior to the expiration date of the contract.

The Company may also invest
in Treasury futures, interest rate futures, interest rate swaps, and interest rate swap futures. A Treasury futures contract involves
an obligation to purchase or sell Treasury securities at a future date at a price set at the time of the contract. The sale of a Treasury
futures contract creates an obligation by the Company to deliver the amount of certain types of Treasury securities called for in the
contract at a specified future time for a specified price. A purchase of a Treasury futures contract creates an obligation by the Company
to take delivery of an amount of securities at a specified future time at a specific price. Interest rate futures can be sold as an offset
against the effect of expected interest rate increases and purchased as an offset against the effect of expected interest rate declines.
Interest rate swaps are an agreement between two parties