Credit spreads were stable too enabling the new issue primary market machine to continue printing across all currencies. Amazon came in dollars with an 8 part multi-tranche and set a new tight spread record for corporate 10 year funding, adding a further $18 billion to their already cash bloated balance sheet.

We continued to reduce duration and increase our floating rate exposure, halving our recent purchase of J P Morgan 33’s, selling our Berkshire Hathaway 39’s and recycling proceeds into our existing RBC 2025 SONIA referenced FRN position. Issuance into Tier 2 bank capital picked up in Sterling and we took some of the new Virgin Money 10-year with a 5-year call, which was well supported. We saw some maturities in the form of the Wellcome Trust 21’s and a LBBW note which both rolled off.