EUR denominated IG issuance was the slowest month since 2002 and apparently this is more due to lack of urgency on the part of issuers as opposed to lack of investor interest. GBP issuance was a little more robust but mostly of long duration by Housing Associations or the likes of Wellcome Trust and whilst I am an enormous fan of the institution I am reluctant to lend them money for 50 years at 1.5%. Financial issuance was mainly from less than compelling names.

Legal and General unsurprisingly called their 2041 subordinated note, which carried a 10% coupon (those were the days), at the first opportunity. We took profits in our Burberry 25’s which had tightened over 40bp since issuance last September. We also sold some JP Morgan Senior Unsecured taking a capital profit although these were only 5bp tighter than issue in April having priced at the tightest end of guidance. Tritax Big Box Green 33’s were also sold, whilst a good quality credit for a retail REIT this had again priced tightly and after an initial squeeze then traded sideways 20bp tighter.