Company: TSI
Filing Date: 2025-03-05
Form Type: N-CSR
Source: 0001193125-25-046168
Chunk: 4

Company: TCW STRATEGIC INCOME FUND INC
Filing Date: 2025-03-05
Form: N-CSR
Chunk 4
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 notably in higher financing costs that weigh on economic growth and, of course, on those most in need of credit. 3

| Letter to Shareholders (Continued) |

Portfolio Positioning SECTOR ALLOCATION Asset-Backed Securities (ABS) Common Stock (CS) Convertible Corporate Bonds (CCB) Corporate Bonds (CB) Foreign Government Bonds (FGB) 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) Moderate leverage can be utilized by the Fund through a Line of Credit facility, though the Fund did not use any of the available $70 million commitment in 2024. Leverage is used when market opportunity is abundant and management deems the use of leverage accretive to returns. We greatly appreciate your investment in the Fund and your continuing support of TCW. If you have any additional questions or comments, we invite you to visit our website at www.tcw.com or contact our shareholder services department at 1-866-227-8179,or contact@tcw.com. Sincerely, Megan McClellan President and Principal Executive Officer 4 TCW Strategic Income Fund, Inc. Management Discussion Notwithstanding a higher rate environment, the TCW Strategic Income Fund (“TSI” or “Fund”) gained 7.34% (NAV-basedreturn) in 2024, while the Bloomberg 3-MonthU.S. Treasury Bellwethers Index + 400 bps returned 9.48% for the year. A recognition that rates at current levels remain restrictive and above equilibrium conditions informed the longer duration position throughout the year, which was the largest detractor from relative performance. Meanwhile, yield spreads compressed across fixed income sectors, resulting in outperformance versus duration-matched Treasuries, and a selection impact that helped offset the duration drag. Looking at sectors more specifically, securitized credit allocations contributed the most. The position in private label CMBS was scaled up throughout the year and contributed meaningfully to returns as the sector was one of the strongest performers on a total and excess return basis. Allocations targeted single asset single borrower (SASB