Target Portfolio Composition

Throughout Economic Cycle

During periods of economic slow down, the risk /reward of owning bank debt outweigh the potential gain in equities, as restructuring and bankruptcies increase

As the economic environment improves, corporate cash flow and balance sheets improve, increasing the attractiveness of unsecured debt

As confidence in the economy increases, companies begin to engage in M&A and capex programs financed with debt to drive revenues; equity becomes more attractive than debt on a risk reward basis