June was a constructive month for CLOs and leveraged loans, with positive performance across most CLO tranches and the broader loan market as income generation more than offset modest price weakness. Market conditions remained mixed, however, as ongoing pressure in software and services credits contributed to performance dispersion across sectors and ratings.  Despite macroeconomic uncertainty, the asset class benefited from generally firm credit fundamentals, improved leveraged-loan issuance conditions and attractive carry opportunities, even as CLO issuance slowed.

‍

For Institutional Investor use only. Past performance is not indicative of future results. All data as of month-end unless otherwise noted. This information is presented for informational purposes only. This is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole investment making decision. CLO, Bank loan, corporate securities, and high yield bonds involve risk of default on interest and principal payments or price changes due to changes in credit quality of the borrower, among other risks. All material is compiled from sources believed to be reliable, but accuracy cannot be guaranteed. The opinions expressed herein are based on current market conditions and are subject to change without notice.