Credit spreads found new post March tights before reversing to widen in a contained way before the US election (a move since reversed) and this period slowed new issuance too.

CHIG participated in the tender for Orange 22’s hybrids on good terms to raise cash and also took profits on the recent VW 1.125 23’s and Diageo 1Q 33’s. A long term favourite in the form of Digital Realty 4T 23’s were also called, we would like to see further issuance from this quality name, a provider of global digital infrastructure for, and in partnership with, some of the biggest tech and telecom names such as IBM and AT&T.

Most of these proceeds were recycled into new issues in primary markets. We took some of the new Intercontinental Hotels 8yr at Gilts + 340bp, this ‘survivor’ name in the sector is now trading 40bp tighter in secondary. We also took new issues from Pension Insurance Corp, a new green Holdco from Barclays and Heathrow Funding, who came with a 9 year at G+260bp to huge demand. We also participated in the inaugural sustainable  7yr Sterling issue from Enel, which has a coupon step up of 25bp if they are not generating >60% of their capacity by end 2022.