Company: PRIF-PJ
Filing Date: 2025-03-26
Form Type: N-2
Source: 0001554625-25-000027
Chunk: 23

Company: Priority Income Fund, Inc.
Filing Date: 2025-03-26
Form: N-2
Chunk 23
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 2015, which is the most recent date that is available for this data, have generated a positive return to equity investors. (3) Despite the historically favorable returns delivered by most junior classes of U.S. CLOs, these investments have generated lower returns during periods of extreme market volatility, particularly as a result of events impacting the U.S. credit markets. See “Risk Factors - Price declines in the markets for Target Securities, especially equity and junior tranches of CLOs and Senior Secured Loans, may adversely affect the fair value of our portfolio, reducing our net asset value through increased net unrealized depreciation.”

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(1) Source: Pitchbook, LCD Credit Analysis, Credit Research, Descriptive Statistics, “Par Amount of Outstanding Leveraged Loans”, as of February 2025.

(2) Source: Citigroup Global Capital Markets Research – Citi US CLO Scorecard – April 11, 2022; Citigroup Global Markets Research - 2012 Equity Study Spreadsheet; Citigroup Global Markets Research - Global Structured Credit Strategy - March 12, 2013; 2022 – 2024 Average CLO Equity Annualized Yields determined using Intex US CLO Database and Prospect Capital assumptions.

(3) Source: Wells Fargo Structured Products Research, Intex and data provided by CLO Collateral Managers.

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Average CLO Equity Annualized Yields</div>

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Source: Citigroup Global Markets Research - Citi US CLO Scorecard – April 11, 2022; Citigroup Global Markets Research - 2012 Equity Study Spreadsheet; Citigroup Global Markets Research - Global Structured Credit Strategy - March 12, 2013; 2022 – 2024 Average CLO Equity Annualized Yields determined using Intex US CLO Database and Prospect Capital assumptions.

#### Cashflow transactions
The underlying assets of cashflow transactions may be either actively managed by a CLO collateral manager, or structured as static pools where few if any changes can be made to the initial asset selection. We invest primarily in actively-managed transactions where the portfolios will be managed according to typically stringent investment guidelines set out at the inception of the transaction. These guidelines likely will include specific requirements determined by the rating agencies (Moody’s, Standard & Poor’s, and/or Fitch), such as a portfolio broadly invested by industry and issuer and weighted average rating requirements on the Senior Secured Loans in the portfolio.

Broad investment variety is a key