CLO performance divergence continued in March, with positive returns concentrated higher in the capital stack, while lower‑mezzanine tranches materially lagged. Carry remained the primary driver of returns but was insufficient to offset spread widening in BBB and BB tranches. The loan market generated positive returns across ratings, with single B securities leading after two consecutive months of losses. One‑month returns by rating were BB (+0.47%), B (+0.61%), and CCC (+0.17%). CLO tranche performance was mixed, with the JPMorgan CLOIE Index reporting returns of +0.19% (AAA), +0.09% (AA), +0.21% (A), ‑0.14% (BBB), and ‑2.02% (BB).