NYLI Floating Rate Fund Q1 2025 Commentary

Summary

• The NYLI Floating Rate Fund returned 0.44% in Q1 2025, slightly underperforming the S&P/LSTA Leveraged Loan Index's 0.48% return.
• Loan market fundamentals remain stable, with default rates declining to 1.24%, well below long-term averages, supporting a constructive outlook.
• Fund performance benefited from sector overweights in Chemicals and Hotels, but was hurt by positions in Containers & Packaging and Commercial Services.
• The fund maintains broad diversification, a short duration profile, and a competitive 7.48% SEC yield, but investors should consider credit and liquidity risks.

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Market Review

● The floating rate market returned 0.5% in 1Q25, a decline from 2.3% in 4Q24. Floating rate market returns outperformed equities, were roughly in line with high yield, and underperformed other lower credit risk assets including investment grade and long-dated U.S. Treasury securities.