Summary

• First Eagle Credit Opportunities Fund – Class I returned 0.97% year-to-date as of March 31, 2026, representing past performance which does not guarantee future results.
• The Bloomberg US Aggregate Bond Index was flat for the quarter, while the Bloomberg Global Aggregate Index declined 1.1% and the S&P UBS Leveraged Loan Index fell 0.5%.
• US broadly syndicated loan activity cooled in the first quarter; total primary market activity amounted to only $241 billion, 32% slower than 2025's pace.
• Lower middle market yields continued to drift downward, ending the quarter at 9.1% while spread per turn of leverage ended at its widest level since August 2024.
• First Eagle Alternative Credit has maintained a conservative bias in the portfolio, reflecting an expectation of a repricing of risk going into the end of 2025.

Market Overview

Following a strong 2025 for credit markets broadly, mounting headwinds in early 2026 prompted a sharp increase in volatility and a repricing of risk.

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