Common use of High Yield Securities Risk Clause in Contracts

High Yield Securities Risk. Securities that are rated below investment-grade (commonly referred to as “junk bonds,” which may include those bonds rated below “BBB-” by S&P 15 Global Ratings and Fitch, or below “Baa3” by Xxxxx’x), or are unrated, may be deemed speculative, may involve greater levels of risk than higher-rated securities of similar maturity and may be more likely to default. The major risks of high yield securities investments include:  High yield securities may be issued by less creditworthy issuers. Issuers of high yield securities may have a larger amount of outstanding debt relative to their assets than issuers of investment-grade bonds. In the event of an issuer’s bankruptcy, claims of other creditors may have priority over the claims of high yield securities holders, leaving few or no assets available to repay high yield securities holders.  Prices of high yield securities are subject to extreme price fluctuations. Adverse changes in an issuer’s industry and general economic conditions may have a greater impact on the prices of high yield securities than on other higher rated fixed-income securities. The credit rating of a high yield security does not necessarily address its market value risk. Ratings and market value may change from time to time, positively or negatively, to reflect new developments regarding the issuer.  Issuers of high yield securities may be unable to meet their interest or principal payment obligations because of an economic downturn, specific issuer developments, or the unavailability of additional financing.  High yield securities frequently have redemption features that permit an issuer to repurchase the security from the Fund before it matures. If the issuer redeems high yield securities held by the Fund, the Fund may have to invest the proceeds in bonds with lower yields and may lose income.  High yield securities may be less liquid than higher rated fixed-income securities, even under normal economic conditions. There are fewer dealers in the high yield securities market, and there may be significant differences in the prices quoted for high yield securities by the dealers. Because high yield securities may be less liquid than higher rated fixed-income securities, judgment may play a greater role in valuing certain of the Fund’s securities than is the case with securities trading in a more liquid market.  The Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting issuer.

High Yield Securities Risk. Securities that The Fund may invest in high yield securities of any rating. Investment in high yield securities involves substantial risk of loss. Below investment grade non-convertible debt securities or comparable unrated securities are rated below investment-grade (commonly referred to as “junk bonds,” which may include those bonds rated below “BBB-” by S&P 15 Global Ratings and Fitchare considered predominantly speculative with respect to the issuer’s ability to pay interest and principal and are susceptible to default or decline in market value due to adverse economic and business developments. The market values for high yield securities tend to be very volatile, and these securities are less liquid than investment grade debt securities. For these reasons, your investment in the Fund is subject to the following specific risks: • increased price sensitivity to changing interest rates and to a deteriorating economic environment; • greater risk of loss due to default or below “Baa3” by Xxxxx’x), or declining credit quality; • adverse company specific events are unrated, may be deemed speculative, may involve greater levels of risk than higher-rated securities of similar maturity and may be more likely to default. The major risks render the issuer unable to make interest and/or principal payments; and • if a negative perception of the high yield securities investments include:  High yield securities may be issued by less creditworthy issuers. Issuers of high yield securities may have a larger amount of outstanding debt relative to their assets than issuers of investment-grade bonds. In market develops, the event of an issuer’s bankruptcy, claims of other creditors may have priority over the claims of high yield securities holders, leaving few or no assets available to repay high yield securities holders.  Prices of high yield securities are subject to extreme price fluctuations. Adverse changes in an issuer’s industry and general economic conditions may have a greater impact on the prices of high yield securities than on other higher rated fixed-income securities. The credit rating of a high yield security does not necessarily address its market value risk. Ratings and market value may change from time to time, positively or negatively, to reflect new developments regarding the issuer.  Issuers liquidity of high yield securities may be unable depressed. This negative perception could last for a significant period of time. Securities rated below investment grade are speculative with respect to the capacity of the issuer to pay interest and repay principal in accordance with the terms of such securities. A rating of “Ba1” from Xxxxx’x means that the issue so rated can have speculative elements and is subject to substantial credit risk. Standard & Poor’s assigns a rating of “BB+” to issues that are less vulnerable to nonpayment than other speculative issues, but nonetheless subject to major ongoing uncertainties or exposure to adverse business, financial or economic conditions which could lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation. A rating of “C” from Xxxxx’x means that the issue so rated can be regarded as having extremely poor prospects of ever attaining any real investment standing. Standard & Poor’s assigns a rating of “C” to issues that are currently highly vulnerable to nonpayment, and the “C” rating may be used to cover a situation in which a bankruptcy petition has been filed or similar action taken, but payments on the obligation are being continued (a “C” rating is also assigned to a preferred stock issue in arrears on dividends or sinking fund payments, but that is currently paying). See the statement of additional information for a description of Xxxxx’x and Standard & Poor’s ratings. Adverse changes in economic conditions are more likely to lead to a weakened capacity of a high yield issuer to make principal payments and interest payments than an investment grade issuer. The principal amount of high yield securities outstanding has proliferated in the past decade as an increasing number of issuers have used high yield securities for corporate financing. An economic downturn could severely affect the ability of highly leveraged issuers to service their debt obligations or to repay their obligations upon maturity. Similarly, downturns in profitability in specific industries could adversely affect the ability of high yield issuers in those industries to meet their interest or principal payment obligations because obligations. The market values of an economic downturn, specific issuer developments, or lower quality debt securities tend to reflect individual developments of the unavailability of additional financing.  High yield securities frequently have redemption features that permit an issuer to repurchase a greater extent than do higher quality securities. Factors having an adverse impact on the security from the Fund before it matures. If the issuer redeems high yield market value of lower quality securities held by may have an adverse effect on the Fund’s net asset value and the market value of its common shares. In addition, the Fund may have incur additional expenses to invest the proceeds extent it is required to seek recovery upon a default in bonds with lower yields payment of principal or interest on its portfolio holdings. In certain circumstances, the Fund may be required to foreclose on an issuer’s assets and may lose incometake possession of its property or operations.  High In such circumstances, the Fund would incur additional costs in disposing of such assets and potential liabilities from operating any business acquired. The secondary market for high yield securities may not be less as liquid than higher as the secondary market for more highly rated fixed-income securities, even under normal economic conditionsa factor which may have an adverse effect on the Fund’s ability to dispose of a particular security. There are fewer dealers in the high yield securities market, and there may be significant differences in the prices quoted market for high yield securities than for investment grade obligations. The prices quoted by different dealers may vary significantly and the dealersspread between the bid and asked price is generally much larger than for higher quality instruments. Because investors generally perceive that there are greater risks associated with lower quality debt securities of the type in which the Fund may invest a portion of its assets, the yields and prices of such securities may tend to fluctuate more than those for higher rated securities. In the lower quality segments of the debt securities market, changes in perceptions of issuers’ creditworthiness tend to occur more frequently and in a more pronounced manner than do changes in higher quality segments of the debt securities market, resulting in greater yield and price volatility. If the Fund invests in high yield securities may be less liquid than higher that are rated fixed-“C” or below, the Fund will incur significant risk in addition to the risks associated with investments in high yield securities and corporate loans. Distressed securities frequently do not produce income securities, judgment may play a greater role in valuing certain of the Fund’s securities than is the case with securities trading in a more liquid marketwhile they are outstanding.  The Fund may incur expenses to the extent necessary to seek recovery upon purchase distressed securities that are in default or the issuers of which are in bankruptcy. The Fund may be required to negotiate new terms with a defaulting issuerbear certain extraordinary expenses in order to protect and recover its investment. The Fund also will be subject to significant uncertainty as to when and in what manner and for what value the obligations evidenced by the distressed securities will eventually be satisfied. Inflation Risk. Inflation is the reduction in the purchasing power of money resulting from an increase in the price of goods and services. Inflation risk is the risk that the inflation adjusted or “real” value of an investment in preferred stock or debt securities or the income from that investment will be worth less in the future. As inflation occurs, the real value of the preferred stock or debt securities and the dividend payable to holders of preferred stock or interest payable to holders of debt securities declines.

High Yield Securities Risk. Securities that The Fund may invest in high yield securities of any rating. Investment in high yield securities involves substantial risk of loss. Below investment grade non-convertible debt securities or comparable unrated securities are rated below investment-grade (commonly referred to as “junk bonds,” which may include those bonds rated below “BBB-” by S&P 15 Global Ratings and Fitchare considered predominantly speculative with respect to the issuer’s ability to pay interest and principal and are susceptible to default or decline in market value due to adverse economic and business developments. The market values for high yield securities tend to be very volatile, and these securities are less liquid than investment grade debt securities. For these reasons, your investment in the Fund is subject to the following specific risks: • increased price sensitivity to changing interest rates and to a deteriorating economic environment; • greater risk of loss due to default or below “Baa3” by Xxxxx’x), or declining credit quality; • adverse company specific events are unrated, may be deemed speculative, may involve greater levels of risk than higher-rated securities of similar maturity and may be more likely to default. The major risks render the issuer unable to make interest and/or principal payments; and • if a negative perception of the high yield securities investments include:  High yield securities may be issued by less creditworthy issuers. Issuers of high yield securities may have a larger amount of outstanding debt relative to their assets than issuers of investment-grade bonds. In market develops, the event of an issuer’s bankruptcy, claims of other creditors may have priority over the claims of high yield securities holders, leaving few or no assets available to repay high yield securities holders.  Prices of high yield securities are subject to extreme price fluctuations. Adverse changes in an issuer’s industry and general economic conditions may have a greater impact on the prices of high yield securities than on other higher rated fixed-income securities. The credit rating of a high yield security does not necessarily address its market value risk. Ratings and market value may change from time to time, positively or negatively, to reflect new developments regarding the issuer.  Issuers liquidity of high yield securities may be unable depressed. This negative perception could last for a significant period of time. Adverse changes in economic conditions are more likely to meet their interest or principal payment obligations because lead to a weakened capacity of an economic downturn, specific issuer developments, or the unavailability of additional financing.  High a high yield securities frequently have redemption features that permit an issuer to repurchase the security from the Fund before it maturesmake principal payments and interest payments than an investment grade issuer. If the issuer redeems The principal amount of high yield securities held by outstanding has proliferated in the Fundpast decade as an increasing number of issuers have used high yield securities for corporate financing. An economic downturn could severely affect the ability of highly leveraged issuers to service their debt obligations or to repay their obligations upon maturity. The Fund may incur additional expenses to the extent it is required to seek recovery upon a default in payment of principal or interest on its portfolio holdings. In certain circumstances, the Fund may have be required to invest foreclose on an issuer’s assets and take possession of its property or operations. In such circumstances, the proceeds Fund would incur additional costs in bonds with lower yields disposing of such assets and may lose incomepotential liabilities from operating any business acquired.  High The secondary market for high yield securities may not be less as liquid than higher as the secondary market for more highly rated fixed-income securities, even under normal economic conditionsa factor which may have an adverse effect on the Fund’s ability to dispose of a particular security. There are fewer dealers in the high yield securities market, and there may be significant differences in the prices quoted market for high yield securities by than for investment grade obligations. Under adverse market or economic conditions, the dealerssecondary market for securities could contract further, independent of any specific adverse changes in the condition of a particular issuer, and these instruments may become illiquid. Because high yield As a result, the Fund could find it more difficult to sell these securities or may be able to sell the securities only at prices lower than if such securities were widely traded. Prices realized upon the sale of such lower rated or unrated securities, under these circumstances, may be less liquid than higher rated fixed-income securities, judgment may play a greater role the prices used in valuing certain of calculating the Fund’s securities than net asset value. See “Risk Factors — Fund Risks — High Yield Securities Risk.” Inflation Risk. Inflation is the case with reduction in the purchasing power of money resulting from an increase in the price of goods and services. Inflation risk is the risk that the inflation adjusted or “real” value of an investment in preferred stock or debt securities trading or the income from that investment will be worth less in a more liquid marketthe future.  The Fund may incur expenses As inflation occurs, the real value of the preferred stock or debt securities and the dividend payable to the extent necessary holders of preferred stock or interest payable to seek recovery upon default or to negotiate new terms with a defaulting issuerholders of debt securities declines.

High Yield Securities Risk. Securities that The Fund may invest in high yield securities of any rating. Investment in high yield securities involves substantial risk of loss. Below investment grade non-convertible debt securities or comparable unrated securities are rated below investment-grade (commonly referred to as “junk bonds,” which may include those bonds rated below “BBB-” by S&P 15 Global Ratings and Fitchare considered predominantly speculative with respect to the issuer’s ability to pay interest and principal and are susceptible to default or decline in market value due to adverse economic and business developments. The market values for high yield securities tend to be very volatile, and these securities are less liquid than investment grade debt securities. For these reasons, your investment in the Fund is subject to the following specific risks: • increased price sensitivity to changing interest rates and to a deteriorating economic environment; • greater risk of loss due to default or below “Baa3” by Xxxxx’x), or declining credit quality; • adverse company specific events are unrated, may be deemed speculative, may involve greater levels of risk than higher-rated securities of similar maturity and may be more likely to default. The major risks render the issuer unable to make interest and/or principal payments; and • if a negative perception of the high yield securities investments include:  High yield securities may be issued by less creditworthy issuers. Issuers of high yield securities may have a larger amount of outstanding debt relative to their assets than issuers of investment-grade bonds. In market develops, the event of an issuer’s bankruptcy, claims of other creditors may have priority over the claims of high yield securities holders, leaving few or no assets available to repay high yield securities holders.  Prices of high yield securities are subject to extreme price fluctuations. Adverse changes in an issuer’s industry and general economic conditions may have a greater impact on the prices of high yield securities than on other higher rated fixed-income securities. The credit rating of a high yield security does not necessarily address its market value risk. Ratings and market value may change from time to time, positively or negatively, to reflect new developments regarding the issuer.  Issuers liquidity of high yield securities may be unable depressed. This negative perception could last for a significant period of time. Securities rated below investment grade are speculative with respect to the capacity of the issuer to pay interest and repay principal in accordance with the terms of such securities. A rating of “Ba1” from Xxxxx’x means that the issue so rated can have speculative elements and is subject to substantial credit risk. Standard & Poor’s assigns a rating of “BB+” to issues that are less vulnerable to nonpayment than other speculative issues, but nonetheless subject to major ongoing uncertainties or exposure to adverse business, financial or economic conditions which could lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation. A rating of “C” from Xxxxx’x means that the issue so rated can be regarded as having extremely poor prospects of ever attaining any real investment standing. Standard & Poor’s assigns a rating of “C” to issues that are currently highly vulnerable to nonpayment, and the “C” rating may be used to cover a situation in which a bankruptcy petition has been filed or similar action taken, but payments on the obligation are being continued (a “C” rating is also assigned to a preferred stock issue in arrears on dividends or sinking fund payments, but that is currently paying). See the statement of additional information for a description of Xxxxx’x and Standard & Poor’s ratings. Adverse changes in economic conditions are more likely to lead to a weakened capacity of a high yield issuer to make principal payments and interest payments than an investment grade issuer. The principal amount of high yield securities outstanding has proliferated in the past decade as an increasing number of issuers have used high yield securities for corporate financing. An economic downturn could severely affect the ability of highly leveraged issuers to service their debt obligations or to repay their obligations upon maturity. Similarly, downturns in profitability in specific industries could adversely affect the ability of high yield issuers in those industries to meet their interest or principal payment obligations because obligations. The market values of an economic downturn, specific issuer developments, or lower quality debt securities tend to reflect individual developments of the unavailability of additional financing.  High yield securities frequently have redemption features that permit an issuer to repurchase a greater extent than do higher quality securities. Factors having an adverse impact on the security from the Fund before it matures. If the issuer redeems high yield market value of lower quality securities held by may have an adverse effect on the Fund’s net asset value and the market value of its common shares. In addition, the Fund may have incur additional expenses to invest the proceeds extent it is required to seek recovery upon a default in bonds with lower yields payment of principal or interest on its portfolio holdings. In certain circumstances, the Fund may be required to foreclose on an issuer’s assets and may lose incometake possession of its property or operations.  High In such circumstances, the Fund would incur additional costs in disposing of such assets and potential liabilities from operating any business acquired. The secondary market for high yield securities may not be less as liquid than higher as the secondary market for more highly rated fixed-income securities, even under normal economic conditionsa factor which may have an adverse effect on the Fund’s ability to dispose of a particular security. There are fewer dealers in the high yield securities market, and there may be significant differences in the prices quoted market for high yield securities than for investment grade obligations. The prices quoted by different dealers may vary significantly and the dealersspread between the bid and asked price is generally much larger than for higher quality instruments. Because investors generally perceive that there are greater risks associated with lower quality debt securities of the type in which the Fund may invest a portion of its assets, the yields and prices of such securities may tend to fluctuate more than those for higher rated securities. In the lower quality segments of the debt securities market, changes in perceptions of issuers’ creditworthiness tend to occur more frequently and in a more pronounced manner than do changes in higher quality segments of the debt securities market, resulting in greater yield and price volatility. If the Fund invests in high yield securities that are rated “C” or below, the Fund will incur significant risk in addition to the risks associated with investments in high yield securities and corporate loans. Distressed securities frequently do not produce income while they are outstanding. The Fund may purchase distressed securities that are in default or the issuers of which are in bankruptcy. The Fund may be less liquid than higher rated fixed-income required to bear certain extraordinary expenses in order to protect and recover its investment. The Fund also will be subject to significant uncertainty as to when and in what manner and for what value the obligations evidenced by the distressed securities will eventually be satisfied. Interest Rate Risk. In addition to the risks described above, debt securities, judgment including high yield securities, are subject to certain risks, including: • if interest rates go up, the value of debt securities in the Fund’s portfolio generally will decline; • during periods of declining interest rates, the issuer of a security may play exercise its option to prepay principal earlier than scheduled, forcing the Fund to reinvest in lower yielding securities. This is known as call or prepayment risk. Debt securities frequently have call features that allow the issuer to repurchase the security prior to its stated maturity. An issuer may redeem an obligation if the issuer can refinance the debt at a greater role lower cost due to declining interest rates or an improvement in valuing the credit standing of the issuer; • during periods of rising interest rates, the average life of certain types of securities may be extended because of slower than expected principal payments. This may lock in a below market interest rate, increase the estimated period until the security is paid in full and reduce the value of the security. This is known as extension risk; • rising interest rates could result in an increase in the cost of the Fund’s leverage and could adversely affect the ability of the Fund to meet asset coverage requirements with respect to leverage; • variable rate securities than generally are less sensitive to interest rate changes but may decline in value if their interest rates do not rise as much, or as quickly, as interest rates in general. When the Fund holds variable rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the NAV of the Fund’s shares; and • the risks associated with rising interest rates may be particularly acute in the current market environment because market interest rates are currently near historically low levels. Thus, the Fund currently faces a heightened level of interest rate risk. To the extent the Federal Reserve Board raises interest rates, there is a risk that interest rates across the financial system may rise. Increases in volatility and interest rates in the fixed income market may expose the Fund to heightened interest rate risk. Many financial instruments use or may use a floating rate based on LIBOR, which is the case offered rate for short-term Eurodollar deposits between major international banks. LIBOR was expected to be phased out by the end of 2021. On November 30, 2020, the administrator of LIBOR announced a delay in the phase out of a majority of the U.S. dollar LIBOR publications until June 30, 2023, with securities trading the remainder of LIBOR publications to still end at the end of 2021. There remains uncertainty regarding the future utilization of LIBOR and the nature of any replacement rate. As such, the potential effect of a transition away from LIBOR on the Fund or the financial instruments in a more liquid market.  The which the Fund invests can be difficult to ascertain, and they may incur expenses to the extent necessary to seek recovery upon default vary depending on factors that include, but are not limited to: (i) existing fallback or to negotiate new terms with a defaulting issuer.termination provisions in individual contracts and

High Yield Securities Risk. Securities that The Fund may invest in high yield securities of any rating. Investment in high yield securities involves substantial risk of loss. Below investment grade non-convertible debt securities or comparable unrated securities are rated below investment-grade (commonly referred to as “junk bonds,” which may include those bonds rated below “BBB-” by S&P 15 Global Ratings and Fitchare considered predominantly speculative with respect to the issuer’s ability to pay interest and principal and are susceptible to default or decline in market value due to adverse economic and business developments. The market values for high yield securities tend to be very volatile, and these securities are less liquid than investment grade debt securities. For these reasons, your investment in the Fund is subject to the following specific risks: • increased price sensitivity to changing interest rates and to a deteriorating economic environment; • greater risk of loss due to default or below “Baa3” by Xxxxx’x), or declining credit quality; • adverse company specific events are unrated, may be deemed speculative, may involve greater levels of risk than higher-rated securities of similar maturity and may be more likely to default. The major risks render the issuer unable to make interest and/or principal payments; and • if a negative perception of the high yield securities investments include:  High yield securities may be issued by less creditworthy issuers. Issuers of high yield securities may have a larger amount of outstanding debt relative to their assets than issuers of investment-grade bonds. In market develops, the event of an issuer’s bankruptcy, claims of other creditors may have priority over the claims of high yield securities holders, leaving few or no assets available to repay high yield securities holders.  Prices of high yield securities are subject to extreme price fluctuations. Adverse changes in an issuer’s industry and general economic conditions may have a greater impact on the prices of high yield securities than on other higher rated fixed-income securities. The credit rating of a high yield security does not necessarily address its market value risk. Ratings and market value may change from time to time, positively or negatively, to reflect new developments regarding the issuer.  Issuers liquidity of high yield securities may be unable depressed. This negative perception could last for a significant period of time. Adverse changes in economic conditions are more likely to meet their interest or principal payment obligations because lead to a weakened capacity of an economic downturn, specific issuer developments, or the unavailability of additional financing.  High a high yield securities frequently have redemption features that permit an issuer to repurchase the security from the Fund before it maturesmake principal payments and interest payments than an investment grade issuer. If the issuer redeems The principal amount of high yield securities held by outstanding has proliferated in the Fund, past decade as an increasing number of issuers have used high yield securities for corporate financing. An economic downturn could severely affect the Fund may have ability of highly leveraged issuers to invest the proceeds in bonds with lower yields and may lose incomeservice their debt obligations or to repay their obligations upon maturity.  High The secondary market for high yield securities may not be less as liquid than higher as the secondary market for more highly rated fixed-income securities, even under normal economic conditionsa factor which may have an adverse effect on the Fund’s ability to dispose of a particular security. There are fewer dealers in the high yield securities market, and there may be significant differences in the prices quoted market for high yield securities than for investment grade obligations. The prices quoted by different dealers may vary significantly and the dealersspread between the bid and asked price is generally much larger than for higher quality instruments. Because high yield See “Risk Factors — Fund Risks — High Yield Securities Risk.” Inflation Risk. Inflation is the reduction in the purchasing power of money resulting from an increase in the price of goods and services. Inflation risk is the risk that the inflation adjusted or “real” value of an investment in preferred stock or debt securities may or the income from that investment will be worth less liquid than higher rated fixed-income securitiesin the future. As inflation occurs, judgment may play a greater role in valuing certain the real value of the Fund’s preferred stock or debt securities than is and the case with dividend payable to holders of preferred stock or interest payable to holders of debt securities trading in a more liquid market.  The Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting issuerdeclines.