Voya: Using securitized credit to help diversify your clients’ corporate credit exposure

Five factors that are shaping new opportunities You are receiving this email as a registered member of Morningstar.com and have asked to receive features, products and services from third party companies. This is a paid advertisement from the sponsor. View this email as a web page [here](. [Voya Investment Management]( Even as the commercial mortgage-backed securities market continues to wrestle with big questions around offices, the broad forecast for securitized credit has brightened. We see five markers that could shape how the opportunity unfolds. - Commercial mortgage-backed securities: A pickup in commercial property transactions - Asset-backed securities: Subprime auto loan stress in an otherwise healthy consumer backdrop - Residential mortgage-backed securities: A new leg higher in housing - Collateralized loan obligations: A historic dynamic playing out that could see some CLOs repaying themselves - Securitized allocations: Green shoots of optimism amid wide yield spreads Each Securitized Subsector is at a Different Point in its Cycle, Creating Opportunities for Managers [Five Things to Watch in Securitized Credit Image]( As of 06/30/23. Source: Voya IM, Federal Reserve. Phase assessment predicted on our view that market valutaion measures and the sizes of debt markets maintain a relationship with nominal GDP over time. These relationships follow a cyclical, mean-reverting pattern marked by peaks and troughs. Leverage measures (debt markets) assess the size of the market relative to nominal GDP. Valuation measures (asset prices) track the ratio of the index or asset price vs. nominal GDP. Analysis based on available data since 2000. Source: Securitized credit spreads and returns: J.P. Morgan; 06/30/23. Read [Five Things to Watch in Securitized Credit]( to learn more about the potential opportunities in this asset class. [Read the paper]( Voya Investment Management [Instagram]( [Linked In]( Past performance is no guarantee of future results. Principal risks: All investing involves risks of fluctuating prices and the uncertainties of rates of return and yield inherent in investing. Foreign investing does pose special risks, including currency fluctuation, economic and political risks not found in investments that are solely domestic. Emerging market securities may be especially volatile. The Funds may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and may have a potentially large impact on Fund performance. The Funds are subject to both credit and interest rate risk. The Funds’ share prices and yields will be affected by interest rate movements, with bond prices generally moving in the opposite direction from interest rates. Credit risk refers to the bond issuers’ and senior loan issuers’ ability to make timely payments of principal and interest. High yield securities, or junk bonds, are rated lower than investment grade bonds because there is a greater possibility that the issuer may be unable to make interest and principal payments on those securities. To the extent that a portfolio invests in mortgage-related securities, its exposure to prepayment and extension risks may be greater than investments in other fixed income securities. Other risks of the funds include but are not limited to: borrowing/leverage risks, debt securities risk, non-diversification risks, other investment companies’ risks, price volatility risks, inability to sell securities risks, securities lending risks, and portfolio turnover risks. This email has been prepared by Voya Investment Management for informational purposes. Nothing contained herein should be construed as (i) an offer to sell or solicitation of an offer to buy any security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. Any opinions expressed herein reflect our judgment and are subject to change. Certain of the statements contained herein are statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (1) general economic conditions, (2) performance of financial markets, (3) interest rate levels, (4) increasing levels of loan defaults, (5) changes in laws and regulations and (6) changes in the policies of governments and/or regulatory authorities. The opinions, views and information expressed in this commentary regarding holdings are subject to change without notice. The information provided regarding holdings is not a recommendation to buy or sell any security. Fund holdings are fluid and are subject to daily change based on market conditions and other factors. For financial professional or qualified institutional investor use only. Not for inspection by, distribution or quotation to, the general public. IM3056087 This email was sent by: Voya Investment Management 230 Park Ave. New York, NY, 10169, US (800) 334-3444 VoyaInvestmentManagement@Voya.com [View online]( | [Unsubscribe]( from future Advertising Products and Features email | [Update]( your email preferences If you have questions about Morningstar.com or your membership, please send a note to joe@morningstar.com. [Click here]( to learn about Morningstar's privacy policy. © 2023 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602