Company: TSI
Filing Date: 2025-08-08
Form Type: N-2
Source: 0001193125-25-177098
Chunk: 112

Company: TCW STRATEGIC INCOME FUND INC
Filing Date: 2025-08-08
Form: N-2
Chunk 112
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 income results in an increase in the size of the PIK securities held, an Underlying Fund’s exposure to potential losses increases when a security pays PIK income.

Status as Non-DiversifiedInvestment Company

Certain Underlying Funds may be non-diversified investment companies within the meaning of the 1940
Act, and therefore such Underlying Funds are not limited with respect to the proportion of the Underlying Fund’s assets that may be invested in securities of a single issuer. To the extent that a
non-diversified Underlying Fund assumes large positions in the securities of a small number of issuers, such Underlying Fund’s NAV may fluctuate to a greater extent than that of a diversified investment
company as a result of changes in the financial condition or the market’s assessment of the issuer. A non-diversified Underlying Fund may also be more susceptible to any single economic or regulatory
occurrence than a diversified investment company. A non-diversified Underlying Fund does not have fixed guidelines for diversification, and the Underlying Fund’s investments could be concentrated in
relatively few Portfolio Companies.

Transportation Finance Risk

An Underlying Fund may invest in transportation finance-related instruments. The transportation finance sector is cyclical in nature and will
likely be dependent upon continued economic growth in the world’s economies. Economic recessions, terrorism, pandemics, the price of fuel, and newer, more efficient vehicles are all risks to these types of investments. Further, funds operating
in these sectors will often have greater portfolio concentration.

Consumer and Auto Loan Risk

An Underlying Fund may invest in consumer loans (or ABS backed by consumer loans), including debt consolidation loans, home improvement loans,
personal loans, residential real estate investments, credit cards, and automobile loans. The performance of such investments are affected by, among other things, general economic conditions. Changes in economic conditions have adversely affected the
performance and market value of such investments. Consumer loans are susceptible to prepayment risks and default risks. Unsecured consumer loans are not secured by any collateral of the borrowers. The repayment of unsecured consumer loans is
dependent upon the ability and willingness of the borrowers to repay. Other consumer loans, like automobile loans, may be secured by collateral, but the value of that collateral is not guaranteed. Automobile loans are not typically insured or
guaranteed by any other person or entity. Increases in unemployment, decreases in home values or the values of other consumer assets or lack of availability of credit may lead to increased default rates and may