Geopolitical tensions, a looming trade war, and frothy market levels combined to put investors on edge in February. The S&P 500 dropped 1.3% while U.S. high-yield bond returns fell to 0.67%, from 1.37% the previous month, according to the Bloomberg U.S. Corporate High Yield Index. In the broadly syndicated loan (BSL) market, total return shrank to 0.11%, the lowest level since October 2023, as reported by the Morningstar LSTA Leveraged Loan Index (LLI). Performance in the BSL market reflected a softer secondary market with the market value component of return registering a loss of 0.50%.