Nomura Corporate Research and Asset Management Inc.

At the heart of the NCRAM strategy is our focus on "strong horse" high yield companies. These are the businesses that we believe are capable of carrying their debt loads through various economic cycles. They can generate strong, sustainable cash flows, which enable them to reduce leverage on their balance sheets and improve their ratings and make them less likely to default on payments of principal or interest. As strong horse companies' credit quality improves, capital appreciation supplements bond income.