News & Articles

Sentiment was strong in January, with spreads on EUR investment grade (IG) corporates 12 basis points (bps) tighter. Demand for credit remains a key driver of spread performance, as inflows into IG credit remained strong, easily absorbing the high issuance in the first half of the month.

Subordinated debt markets were strong in January despite volatility in interest rates. Strong US employment numbers initially put pressure on interest rates.

Subordinated debt markets were strong in January despite volatility in interest rates. Strong US employment numbers initially put pressure on interest rates.

Subordinated debt markets were strong in January despite volatility in interest rates. Strong US employment numbers initially put pressure on interest rates.

The tone was particularly strong in the first half of the month, as spreads briefly broke through 100 bps (setting lows of 98 bps) before drifting wider.

Subordinated debt markets were fairly strong in December, despite a large rise in interest rates on both sides of the pond.

Subordinated debt markets were fairly strong in December, despite a large rise in interest rates on both sides of the pond.

Subordinated debt markets were fairly strong in December, despite a large rise in interest rates on both sides of the pond.

In October the fund showed resilience during a weak month for fixed income, as interest rates were rising. This was notably the case in the US, where strong economic data, combined with the fixed income market pricing in a Donald Trump win, meant that interest rates, as measured by the 10-year US Treasury bond yield, moved up by circa 50 basis points (bps).

Sentiment was stronger in October, as spreads on EUR investment grade (IG) corporates tightened by 12 basis points (bps) to 104 bps. Spreads were well supported over the month, on a combination of robust macro data from the US and EU, the European Central Bank (ECB) delivering a 25 bps rate cut as expected and very strong technicals.

In October the fund showed resilience during a weak month for fixed income, as interest rates were rising. This was notably the case in the US, where strong economic data, combined with the fixed income market pricing in a Donald Trump win, meant that interest rates, as measured by the 10-year US Treasury bond yield, moved up by circa 50 basis points (bps).

In October the fund showed resilience during a weak month for fixed income, as interest rates were rising. This was notably the case in the US, where strong economic data, combined with the fixed income market pricing in a Donald Trump win, meant that interest rates, as measured by the 10-year US Treasury bond yield, moved up by circa 50 basis points (bps).

In October the fund showed resilience during a weak month for fixed income, as interest rates were rising. This was notably the case in the US, where strong economic data, combined with the fixed income market pricing in a Donald Trump win, meant that interest rates, as measured by the 10-year US Treasury bond yield, moved up by circa 50 basis points (bps).

Credit spreads on EUR investment grade (IG) corporates were broadly unchanged in September at 116 basis points (bps).

September was a positive month for fixed income, as we saw the Federal Reserve cut interest rates by 50 basis points (bps) and the European Central Bank cut by 25 bps.

September was a positive month for fixed income, as we saw the Federal Reserve cut interest rates by 50 basis points (bps) and the European Central Bank cut by 25 bps.

September was a positive month for fixed income, as we saw the Federal Reserve cut interest rates by 50 basis points (bps) and the European Central Bank cut by 25 bps.

February was a relatively stable month for our securities, despite the increase in interest rates. Spreads on our securities tightened slightly during the month. The macroeconomic data has meant that market participants have been revising their assumptions on the number of rate cuts in 2024 downwards. However, the outlook remains constructive, i.e. a gradual disinflationary scenario combined with a soft or no landing. Spreads on subordinated debt of financials remain wide, especially on a relative basis. As such we believe that there is more upside in terms of capital appreciation, in addition to the high income we are receiving.

February was a relatively stable month for our securities, despite the increase in interest rates. Spreads on our securities tightened slightly during the month. The macroeconomic data has meant that market participants have been revising their assumptions on the number of rate cuts in 2024 downwards. However, the outlook remains constructive, i.e. a gradual disinflationary scenario combined with a soft or no landing. Spreads on subordinated debt of financials remain wide, especially on a relative basis. As such we believe that there is more upside in terms of capital appreciation, in addition to the high income we are receiving.

February was a relatively stable month for our securities, despite the increase in interest rates. Spreads on our securities tightened slightly during the month. The macroeconomic data has meant that market participants have been revising their assumptions on the number of rate cuts in 2024 downwards. However, the outlook remains constructive, i.e. a gradual disinflationary scenario combined with a soft or no landing. Spreads on subordinated debt of financials remain wide, especially on a relative basis. As such we believe that there is more upside in terms of capital appreciation, in addition to the high income we are receiving.