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Weekly Market Summary
Sep 2 to Sep 5, 2025
Extra Credit*
- The Bloomberg Municipal Index posted a total return of 0.9% for August. The High-Yield Municipal Index generated a total return of 0.5%, while the US Aggregate-Eligible Taxable Municipal Index posted a total return of 1.4%. Spreads for the taxable municipal agg-eligible tightened by 3 basis points, outperforming corporate indices that were flat.
- The Bloomberg US Investment Grade Credit Index widened by 3 basis points in August to 75 basis points, resulting in a monthly excess return of negative 4 basis points. Crossover fared the best across the investment-grade quality spectrum, while single-A rated bonds fared the worst. The best-performing sectors were sovereigns, oil field services, health insurance, foreign local government and refining. The worst-performing were lodging, wirelines, food and beverage, wireless and midstream.
- The High Yield Index produced total returns of 1.25% last month. Rates were lower, with 5-year and 10-year Treasuries down 28 and 15 basis points, respectively, leading to excess returns of 0.20%. Lower quality bonds outperformed. On a total return basis, the Ba Index gained 1.27%, the B Index was up 1.11%, and the Caa Index returned 1.86%.
As of 9/3/25.
Previous reports
*Source: Morningstar®, Bloomberg, Credit Suisse. OAS is Options Adjusted Spread. 4-year discount margin is used for spread for bank loans. Yield quoted is yield-to-worst or equivalent calculation. YTD Low / High for yields are based on end of week and not intraday movements. Indexes and sub-indexes: Investment-grade corporates represented by Bloomberg US Corporate Bond Index. High-yield bonds represented by Bloomberg US Corporate High Yield Index. Bank loans represented by Credit Suisse Leverage Loan Index. The red and green arrows depicted under Yields, Option Adjusted Spreads, and Prices indicate a higher or lower value from the previous week.
Past performance does not guarantee future results. Index performance is not indicative of fund performance. Indexes are unmanaged and it is not possible to invest directly in an index.
Any discussion of individual companies is not intended as recommendation to buy, hold or sell securities issued by those companies. Aristotle Fund holdings can be found on the fund pages linked above.
Investors should consider a fund’s investment goal, risks, charges, and expenses carefully before investing. The prospectus and/or the applicable summary prospectus contain this and other information about the Fund and are available from AristotleFunds.com. The prospectus and/or summary prospectus should be read carefully before investing.
Investing involves risk. Principal loss is possible.
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