We saw a spate of new issues in early September but the first wave coincided with some volatility in risk assets so initially performed poorly and, since new issue premium remains compressed, there was little room for underperformance. Credit spreads overall remained well supported although they leaked a little wider over the month.

Post their rights issue, we took the opportunity to sell our position in Hammerson 25’s, a name which still faces a challenging future. VW came with a new 3 year issue, paying Gilts + 135bp and we switched some of our VW 4Q 25’s into it, which came at G+425 in April. We received the redemption proceeds for our Bupa 6.125’s and rolled them forward into some 13-year Diageo, which came at G+100, in contrast to their 9-year, which we bought in March at G+255bp. We raised cash through taking profits in some Lloyds Bank Corporate Markets (the non-ring fenced bank) and some National Grid 28’s and reinvested in the EIB 25’s to maintain our AAA weighting of 25%. We added to some our infrastructure holdings including INPP.