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CLO performance was positive across the board in June as carry drove total return, and spreads compressed across all tranches in the capital stack.

The loan asset class generated positive performance as the continuing recovery in risk appetite was a tailwind in June. Relative to credit peers, loan performance lagged behind the +1.87% and +1.84% total returns of investment-grade and high-grade corporate bonds respectively, which benefited from both spread compression and falling U.S Treasury yields.