The primary market remained active after a short election pause. Secondary markets were active too but there is still limited inventory available and a firm reluctance to establish short positions.

As we headed towards new post COVID-19 tights, we took profits in some newly established Volkswagen Finance 3-year risk. We sold some National Bank of Canada secured paper and replaced it with a high discount margin floater from the European Bank of Reconstruction and Development; this and a new short dated position from KFW helped us to maintain our AAA weighting.

We took the new 10-year Senior from one of the better rated UK financial institutions, Close Brothers, switching out of their 2021’s which have served the fund well. We managed to find some Shaftesbury Chinatown 27’s to add to our existing position but these bonds remain tightly held. A less well-known name in the property sector but of good quality too, Tritax Big Box, came with a new green 13-year issue. This was very well received and priced at the very tightest end of guidance to pay a yield of 1.64%.