The Benefits of CLLOs

Loan market is very bifurcated. So the higher quality loans that CLLO's invest in typically trade closer to par. And then you have the weaker B3B-minus or even triple C loans that CllOs are not actively investing in and that creates a very wide dispersion between the two. The expectation for default this year into next year is probably around three to four percent. That's a market expectation, it's not a CLLO specific expectation.