Company: TSI
Filing Date: 2025-09-04
Form Type: N-CSRS
Source: 0001193125-25-195336
Chunk: 4

Company: TCW STRATEGIC INCOME FUND INC
Filing Date: 2025-09-04
Form: N-CSRS
Chunk 4
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 the higher the likelihood that they end up presenting an additional headwind to economic growth potential. TCW’s discipline and understanding of fundamental security valuations provide the structure to invest confidently when markets are bumpy, headlines are wild, and volatility is high. Indeed, in the upheaval early in April, we were active in trimming duration, which ended the quarter at 2.3 years, and adding significantly across corporate credit, and to a lesser extent in securitized. We expect and look forward to more such opportunities in the months ahead as we will continue to use those periods — which we anticipate being a regular feature of today’s markets — to add yield and potential return to the Fund. In the meantime, however, some of the corporate exposure that was put on in April was reduced alongside the market rally, and the resulting allocation across corporate credit remains cautious, with positions biased towards higher quality and more defensive segments of the market. With corporate spreads having fallen back towards all-timetight levels, we believe securitized products currently offer a more compelling relative value argument and therefore constitute a larger position and more attractive segment of the market in which to allocate portfolio risk budgets. Agency MBS represents a substantial position given the sector’s liquidity, spread premiums, and government guarantee, while non-agencyMBS is also a sizeable allocation due to robust collateral profiles across the sector that allow for various opportunities to capture strong risk-adjusted yields. Meanwhile, CMBS exposure is focused on single asset single borrower deals that allow for a detailed analysis of the underlying property and sponsor, facilitating bottom-upinclusion criteria that includes higher yielding positions down the capital structure. ABS positions similarly reflect targeted positions including CLOs and high-quality non-traditionalcollateral types like single-family rentals. 2

Portfolio Positioning SECTOR ALLOCATION Asset-Backed Securities (ABS) Bank Loans (BL) Common Stock (CS) Convertible Corporate Bonds (CCB) Corporate Bonds (CB) Foreign Government Bonds (FGB) Investment Companies (IC) Money Market Investments (MM) Mortgage-Backed Securities (MBS) Municipal Bonds (MUNI) U.S. Treasury Securities (UST) MBS ALLOCATION Commercial Mortgage-Backed Securities — Agency (CMBS AGENCY) Commercial Mortgage-Backed Securities — Non-Agency(CMBS NON-AGENCY) Residential Mortgage-Backed Securities — Agency (RMBS AGENCY) Residential Mortgage-Backed Securities — Non-Agency(RMBS NON-AGENCY) The Fund did not use any