S&P 500 Index daily price moves

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.

While business fundamentals for the energy sector remain generally supportive, investor sentiment, especially for MLP and midstream equities, remains particularly negative. This has resulted in historically cheap valuations for energy infrastructure.

S&P 500 Index annual returns based on prior year's earnings growth

Investment grade bonds’ yield and lengthening duration over time

Today’s economic landscape may challenge the performance of traditional investments going forward. Recent positive cyclical momentum looks set to continue for some time, but long-term structural headwinds remain firmly entrenched. Despite strong growth, low interest rates could challenge investors throughout 2018 and beyond.

Returns have been flat or negative in 2018

As interest rates rose, high yield bonds and senior secured loans outperformed more duration-sensitive asset classes.

Energy markets broadly rebounded in April on the heels of increasing commodity prices and improving fundamentals.