The Impact of Rate Changes on Credit Quality

I think the benefit of floating rate securities is almost a double-edged sword. I would also say considering the impact that those rate changes are having on credit quality in terms of borrowers' ability to deal with higher rates. Anyone who has excessive leverage potentially in a market where their earnings are declining or declining faster than expected, you could see that cost of interest slowly deteriorating some of the earnings power of that company. For many, they haven't fully appreciated a year's worth of this higher short-term rates that we saw really accelerate in 2022.