Quarterly Commentary



US treasury yields were largely unchanged in 2Q of 2020. Yields from the 1-month tenor to the 2-year tenor hovered around
12-15bps. The 10-year UST yield stayed constant at 0.66%, while the yield on the 30-year UST rose 9bps to 1.41%.

The Bloomberg Barclays Aggregate Bond index appreciated 2.9% in the second quarter. US High Yield markets appreciated
by 10.1% during the quarter as spreads contracted from 880bps on 3/31 to 626bps on 6/30. Broad credit markets had a much
stronger tone during the quarter due in part from confidence instilled from the Federal Reserve supporting the investment
grade corporate bond markets. Companies with an investment grade credit rating issued about $840 billion in the first six
months of 2020, matching the previous full-year record set in 2017 and doubling the previous first half year record set in
2016. The thawing of the credit markets allowed corporations to tap the debt markets and issue debt for future flexibility to
weather the current uncertainties brought about from COVID.