Market commentary

Benefiting from their floating rate coupon and position at the top of the capital structure, senior secured loan prices remained relatively steady in the face of rising short-end U.S. Treasury yields and a decline in U.S. equity prices.

Investments with lower durations, such as senior secured loans, have outperformed so far in 2018 and may display lower levels of volatility if U.S. Treasury yields rise further.

Supply/demand balances are on healthy footing, oil prices have risen, North American assets are among the most globally competitive at current oil prices, and valuations for energy companies appear attractive relative to the broader market.

The fundamental conditions for the Energy sector have generally strengthened over the past year and this may have positive implications for investors in the sector.