April continued the pattern of the year so far with volatility across all asset classes (‘nowhere to hide’ is a popular refrain).

Markets continue to agonise over inflation and the size and pace of central bank actions as well as geopolitical and supply chain concerns. 10-year Sovereign yields took another leg wider with the US 10-year reaching 2.94% and the 10-year Gilt printing at 2%. Credit spreads widened across the board with the Bloomberg Sterling Aggregate index reaching pre-pandemic levels not seen since the end of 2018.

Activity was muted in Sterling credit as the primary market window was largely shut and secondary market liquidity patchy. We did take a new issue from Blackstone Private Credit which came on a near 5% yield for a 4-year Investment Grade credit and we continue to find vastly improved yields across the board. Our infrastructure holdings have held up well and we took more profits in HICL and INPP.


The above article has been prepared for investment professionals. Any other readers should note this content does not constitute advice or a solicitation to buy, sell, or hold any investment. We strongly recommend speaking to an investment adviser before taking any action based on the information contained in this article.

Please also note the value of investments and the income you get from them may fall as well as rise, and there is no certainty that you will get back the amount of your original investment. You should also be aware that past performance may not be a reliable guide to future performance.

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