News & Articles

Market sentiment improved in October, following very weak markets in August and September. In the EUR investment grade (IG) market, spreads were only marginally tighter on month (4 bps tighter to 221 bps) while subordinated debt outperformed sharply with IG-rated EUR Tier 2s around 25 bps tighter and EUR additional tier 1 contingent convertible bonds (AT1 CoCos) spreads close to 80 bps tighter.

October was a better month for risk assets, notably subordinated debt which performed strongly. Softening gas and energy prices, coupled with the latest developments in the UK, as well as a more dovish tone by the European Central Bank (ECB) all helped the sentiment at the end of the month.

September was a challenging month as the macro backdrop continues to be difficult, notably with concerns regarding inflation, the potential for a hard landing, the energy crisis and events in the UK following the appointment of the new prime minister.

Sentiment was weak in September, with a notable risk-off environment towards the end of the month. Spreads on EUR investment grade (IG) credit widened by 23 bps to 225 bps on the month, the widest levels year to date – approaching Covid-19 levels of 247 bps.

September was a challenging month as the macro backdrop continues to be difficult, with notably concerns regarding inflation, the potential for a hard landing, the energy crisis and events in the UK following the appointment of the new prime minister.

September was a challenging month as the macro backdrop continues to be difficult, with notably concerns regarding inflation, the potential for a hard landing, the energy crisis and events in the UK following the appointment of the new prime minister.

August was a month of two halves. The month began strongly, and this strength was extended following the lower-than-expected US CPI data. During the second part of August, we saw prices of risk assets fall.

June was a very weak month for risk assets, concluding a weak first half of the year. To put this into context, from a total return perspective, subordinated debt had one of its worst months in the last decade. High CPI numbers and hawkish statements from central banks have …

Sentiment deteriorated in August, despite a strong start to the month. Spreads on EUR IG credit widened by 15 basis points (bps) to around 200 bps, edging closer to year-to-date wides of around 220 bps.

August was a month of two halves. The month began strongly, and this strength was extended following the lower-than-expected US CPI data. During the second part of August, we saw prices of risk assets fall.

July was a stronger month for both risk assets and subordinated debt. However, this is only a small rebound versus the moves we have seen year-to-date. Spreads remain wide and attractive, in our view.

Sentiment improved significantly in July, with the second half of 2022 starting on a strong footing. Spreads on EUR investment grade (IG) corporates tightened by around 30 bps over the month to around 190 bps, reversing a quarter of the first half’s widening.

 July was a stronger month for both risk assets and subordinated debt. However, this is only a small rebound versus the moves we have seen year-to-date. Spreads remain wide and attractive, in our view.

June was a very weak month for risk assets, concluding a weak first half of the year. To put this into context, from a total return perspective, subordinated debt had one of its worst months in the last decade. High CPI numbers and hawkish statements from central banks have …

 July was a stronger month for both risk assets and subordinated debt. However, this is only a small rebound versus the moves we have seen year-to-date. Spreads remain wide and attractive, in our view.

Negative sentiment was persistent during June. Spreads on EUR investment grade (IG) corporates widened by a further 56 bps during the month – bringing total widening to 120 bps since the beginning of the year, with EUR IG spreads now sitting close to 220 bps.

June was a very weak month for risk assets, concluding a weak first half of the year. To put this into context, from a total return perspective, subordinated debt had one of its worst months in the last decade. High CPI numbers and hawkish statements from central banks have …

June was a very weak month for risk assets, concluding a weak first half of the year. To put this into context, from a total return perspective, subordinated debt had one of its worst months in the last decade. High CPI numbers and hawkish statements from central banks have …

Monthly review and performance Market sentiment remained weak in May, as spreads on EUR investment grade (IG) widened by slightly over 10 bps on the month to above 160 bps, as a result of macro concerns. Inflation prints continue to surprise to the ups …

May was volatile, although sentiment started turning slightly more positive at the end of the month. Spreads on subordinated debt of financials remain extremely wide. A number of our holdings have spreads well above 450 bps. Concerns regarding inflatio …