Monthly Commentary – January 2021 USD

by | Feb 16, 2021 | Analysis & Performance, USD

Monthly comment

Financial markets traded sideways in January. Within the subordinated debt market of financials, spreads remained stable above 350 bps. Prior to Covid-19, spreads were slightly around 250 bps. Therefore, we feel that valuations of securities within our portfolio are still attractive. This is despite the fact that financials are starting 2021 from a strong position. For banks, capital ratios and excess capital increased significantly during 2020. Asset quality also surprised to the upside. Q4 earnings season is underway and we are currently seeing a continuation of this trend. We believe this highlights that European banks should be able to withstand any negative surprises during this year, such as more lockdowns.The continuation of central bank easing, as well as strong fiscal support and vaccination programmes, should be supportive for the valuation of our securities. With spreads of around 350 bps, valuations of our securities are still significantly wider than pre-Covid-19 levels, and therefore they should benefit going forward.

  • The Valuation date: November 27, 2024
    serieAsOFDateFKFundNameisinPerformanceTRMTDPerformanceTRYTDPerformanceTRSinceInception
    120,241,128GAM Sustainable Climate Bond fundIE000BSJBO140.01400.0600-0.0145
    220,241,128GAM Star Crdt Ops EUR InvIE00B50JD3540.00990.11370.6596
    320,241,128GAM Star Crdt Ops GBP InvIE00B510J1730.00800.09630.9344
    420,241,128GAM Interest Trend IncIE00BYM4P9130.00460.09430.3793

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