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.

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