A summary of outstanding derivatives at March 31, 2023 is as follows:
Schedule of Open Forward Currency Contracts
March 31, 2023
						Forward			Unrealized
Currency to be		Currency to be		Counterparty of		Settlement			Appreciation /
Received		Delivered(1)		Contract		Date			(Depreciation)
2,540,187	USD	2,548,743	EUR	JP Morgan Chase		4/3/2023			(8,556)
26,582,237	USD	26,846,550	EUR	JP Morgan Chase		4/17/2023			(264,313)
11,169,579	USD	11,374,706	GBP	Morgan Stanley		4/17/2023			(205,127)
								$	(477,996)
(1) Values are listed in U.S. dollars.

 

Valuation of Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  A three-tier hierarchy is utilized to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.  Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk.  For example, market participants would consider the risk inherent in a particular valuation technique used to measure fair value, such as a pricing model, and/or the risk inherent in the inputs to the valuation technique.  Inputs may be observable or unobservable.  Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity.  Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances.  The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

Level 1 – quoted prices in active markets for identical securities

Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security.  To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment.  Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy.  In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The following is a summary of the inputs used as of September 30, 2022 in valuing the Fund’s investments:

Description		Level 1				Level 2				Level 3				Total Investments
Assets:
Equities:
Common Stocks		$	-			$	1,391,552			$	41,748			$	1,433,300
Warrants			-				123,125				-				123,125
Total Equities:			-				1,514,677				41,748				1,556,425
Fixed Income:
Asset-Backed Securities			-				42,076,607				-				42,076,607
Bank Loans			-				19,403,618				24,048,851				43,452,469
Corporate Bonds			-				296,165,101				4,787,826				300,952,927
Total Fixed Income			-				357,645,326				28,836,677				386,482,003
Foreign Exchange Contracts			-				-				-				-
Total Assets:		$	-			$	359,160,003			$	28,878,425			$	388,038,428
Liabilities:
Foreign Exchange Contracts:		$	-			$	477,996			$	-			$	477,996
Total Liabilities:		$	-			$	477,996			$	-			$	477,996

The following table is a summary of quantitative information about significant unobservable valuation inputs for Level 3 fair value measurement for investments held as of March 31, 2023. The table does not include Level 3 financial instruments with values based upon unadjusted third-party pricing information in the amount of $28,836,677. A significant change in third party information could result in a significantly lower or higher value of such Level 3 financial instruments:

Type of Assets		Fair Value as of March 31, 2023			Valuation Technique(s)	Unobservable Input
Equities:
ESC CB 144A High Ridge		$	41,748		Expected Transaction	$14.00; Value derived from pending receipt
		$	41,748

Although the Fund believes the valuation methods described above are appropriate, the use of different methodologies or assumptions to determine fair value could result in different estimates of fair value at the reporting date.

The Fund discloses transfers between levels based on valuations at the end of the reporting period. Based on end of period market values, $11,430,560 was transferred from Level 2 to Level 3 for the period from December 31, 2022, through March 31, 2022. The following is a reconciliation of Level 3 investments based upon the inputs used to determine fair value:

	BALANCE AT DECEMBER 31, 2022	TRANSFERS INTO LEVEL 3	TRANSFERS OUT OF LEVEL 3	PURCHASES	SALES	ACCRETION OF DISCOUNT	REALIZED GAIN / (LOSS)	CHANGE IN UNREALIZED APPRECIATION / (DEPRECIATION) ON INVESTMENTS	BALANCE AT MARCH 31, 2023	CHANGE IN UNREALIZED APPRECIATION / (DEPRECIATION) FROM INVESTMENTS HELD AS OF MARCH 31, 2023
Equities
ESC CB 144A High Ridge	41,748	-	-	-	-	-	-	-	41,748	-
Naviera Armas	-	-	-	-	-	-	-	-	-	-
Naviera Armas	-	-	-	-	-	-	-	-	-	-
Naviera Armas	-	-	-	-	-	-	-	-	-	-
Naviera Armas	-	-	-	-	-	-	-	-	-	-
Tourmaline Excrow Cash	884,606	-	-	-	(912,667)	-	912,667	(884,606)	-	(884,606)
Travelex Private Equity	-	-	-	-	-	-	-	-	-	-
Common Stocks	926,354	-	-	-	(912,667)	-	912,667	(884,606)	41,748	(884,606)
Travelex Topco Limited	120,666	-	(120,666)	-	-	-	-	-	-	-
Warrants	120,666	-	(120,666)	-	-	-	-	-	-	-
Total Equities	1,047,020	-	(120,666)	-	(912,667)	-	912,667	(884,606)	41,748	(884,606)
Bank Loans
Clinigen	-	1,177,372	-	-	-	445	-	39,740	1,217,557	39,740
CP Iris Holdco I 2nd Lien T/L (IPS)	-	2,014,336	-	-	-	-	-	(95,921)	1,918,415	(95,921)
Dessert Holdings	900,000	-	-	-	-	-	-	(8,330)	891,670	(8,330)
Florida Food Products 2nd Lien T/L	1,350,000	-	-	-	-	911	-	(30,911)	1,320,000	(30,911)
Kenan Advantage Group 2nd Lien T/L	4,745,132	-	-	-	-	4,255	-	21,604	4,770,991	21,604
Koppers Holdings, Inc.	-	-	-	1,251,613	-	-	-	9,677	1,261,290	9,677
Medical Solutions T/L	1,355,789	-	-	-	-	-	-	(22,105)	1,333,684	(22,105)
Naviera Armas Bridge	133,210	-	-	-	(143,052)	(589)	10,888	(457)	-	(457)
Naviera Armas Bridge	6,734	-	-	-	(7,231)	-	118	379	-	379
Naviera Armas Bridge	116,315	-	-	-	(124,909)	(2,064)	2,440	8,218	-	8,218
Naviera Armas Bridge	72,438	-	-	-	(77,789)	-	254	5,097	-	5,097
Neptune Energy Group Ltd.	-	-	-	898,876	-	558	-	(3,054)	896,380	(3,054)
Quest Software	-	3,371,352	-	-	(1,135,404)	-	(404,693)	592,609	2,423,864	592,609
SunSource, Inc.	-	2,381,250	-	-	-	(617)	-	(55,633)	2,325,000	(55,633)
Valcour Packaging (MOLD-RITE) 2nd Lien T/L	3,750,000	-	-	-	-	-	-	(550,000)	3,200,000	(550,000)
Worldwide Express 2nd Lien T/L	-	2,486,250	-	-	-	-	-	3,750	2,490,000	3,750
Bank Loans	12,429,618	11,430,560	-	2,150,489	(1,488,385)	2,899	(390,993)	(85,337)	24,048,851	(85,337)
Corporate Bonds
Digicel Limited	-	-	-	-	-	-	-	-	-	-
Naveria Armas	357,193	-	-	30,860	-	(5,222)	-	(13,190)	369,641	(13,190)
Travelex	-	-	-	-	-	-	-	-	-	-
Travelex	4,011,338	-	-	347,853	-	12,243	-	46,751	4,418,185	46,751
Corporate Bonds	4,368,531	-	-	378,713	-	7,021	-	33,561	4,787,826	33,561
Total	$ 17,845,169	$ 11,430,560	$     (120,666)	$  2,529,202	$ (2,401,052)	$          9,920	$      521,674	$    (936,382)	$  28,878,425	$    (936,382)