While we have seen some huge swings in equity prices, the important aspect for our strategy in times of uncertainty is the strength of the credit quality of the companies in our portfolio.

Recent earnings announcements have been in line with our expectations and confirmed the positive view of the companies whose securities we hold.

Our approach is geared towards providing relative insensitivity to rising interest rates, but we are monitoring prices carefully and could seek to take advantage of excessive price moves by adding to some of our favourite positions (which we already have done to a small extent, locking in to attractive yields).

Our utmost consideration is to ensure the strength of our credits and to remind ourselves that, even if prices move up or down on a mark-to-market basis, the coupon income which drives our portfolio returns is accruing daily at attractive levels, the credit quality remains strong and the pull-to-par should reassert once volatility subsides.

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