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Market Review & Outlook: Leveraged Finance

The high yield sector posted a negative return for the first quarter driven by rising U.S. Treasury rates. At current valuation levels, we believe there is limited potential for spread tightening. Our focus is on quality over yield though we will take advantage of market volatility to seek potential opportunities for incremental yield.

Leveraged loans delivered a positive return in the first quarter. Loans are performing as expected in the current market environment – protecting investors from rising interest rates.

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