Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 213

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 213
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 where one stream of future interest rate payments is exchanged for another based
on a specified principal amount. Interest rate swaps often exchange a fixed payment for a floating payment that is linked to a particular
interest rate. Interest rate swap futures are instruments that provide a way to gain swap exposure and the structure features of a futures
contract in a single instrument. Swap futures are futures contracts on interest rate swaps that enable purchasers to cash settle at a
future date at the price determined by the benchmark rate at the end of a fixed period.

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The Company will reduce the
risk that it will be unable to close out a futures contract by only entering into futures contracts that are traded on national futures
exchanges regulated by the CFTC (generally, futures must be traded on such exchanges). The Company may use futures contracts and related
options for either hedging purposes or risk management purposes, or to gain exposure to currencies, as well as to enhance the Company’s
returns. Instances in which the Company may use futures contracts and related options for risk management purposes include: (i) attempting
to offset changes in the value of securities held or expected to be acquired or be disposed of; (ii) attempting to minimize fluctuations
in foreign currencies; (iii) attempting to gain exposure to a particular market, index or instrument; or (iv) other risk management purposes.
The Company may use futures contracts for cash equitization purposes, which allows the Company to invest consistent with its investment
strategy while managing daily cash flows, including significant client inflows and outflows.

There are significant risks
associated with the Company’s use of futures contracts and options on futures contracts, including: (i) the success of a hedging
strategy may depend on the Adviser’s ability to predict movements in the prices of individual securities, fluctuations in markets
and movements in interest rates; (ii) there may be an imperfect or no correlation between the changes in market value of the securities
held by the Company and the prices of futures and options on futures; (iii) there may not be a liquid secondary market for a futures contract
or option; (iv) trading restrictions or limitations may be imposed by an exchange; and (v) government regulations or exchange requirements
may restrict trading in futures contracts and options on futures contracts. In addition, some strategies reduce the Company’s exposure
to price fluctuations, while others tend to increase its market exposure.

Options. The Company
may purchase and write put and call options on indexes and enter into related