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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
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Buyside Digest is not affiliated with, and does not endorse, Easterly - Income Opportunities Fund. This analysis is provided for institutional research purposes only and is not investment advice.
"Easterly Income Opportunities Fund underperformed in Q2 2026 as rising rates offset carry, but maintains conviction in structured credit opportunities. The fund is reallocating from CMBS to higher-quality RMBS while consumer credit bifurcation creates selective opportunities."
The Easterly Income Opportunities Fund returned 0.36% net in Q2 2026, underperforming its benchmark by 31 basis points as rising Treasury yields offset carry income. The quarter saw easing geopolitical tensions, strong corporate earnings led by AI infrastructure investment, and a more hawkish Federal Reserve under Chairman Kevin Warsh. The fund continued improving liquidity and credit quality by reallocating from CMBS to higher-quality RMBS. All portfolio sectors generated positive returns except Corporate Structured Notes, which faced headwinds from yield curve flattening. The fund maintains a constructive outlook on structured credit, particularly Non-Agency RMBS, which remains one of the most resilient areas with favorable credit fundamentals. Within commercial real estate, office properties remain weak while multifamily and industrial properties demonstrate strength. Consumer finances have become increasingly bifurcated, reinforcing the importance of careful security selection. Corporate Structured Notes remain a high-conviction opportunity despite recent weakness. The fund expects AI-driven investment and differentiated credit conditions to create opportunities for active management in the second half of 2026.
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