While we have seen some huge swings in equity prices, the important aspect for our strategy in times of uncertainty is the strength of the credit quality of the companies in our portfolio.

Recent earnings announcements have been in line with our expectations and confirmed the positive view of the companies whose securities we hold.

Our approach is geared towards providing relative insensitivity to rising interest rates, but we are monitoring prices carefully and could seek to take advantage of excessive price moves by adding to some of our favourite positions (which we already have done to a small extent, locking in to attractive yields).

Our utmost consideration is to ensure the strength of our credits and to remind ourselves that, even if prices move up or down on a mark-to-market basis, the coupon income which drives our portfolio returns is accruing daily at attractive levels, the credit quality remains strong and the pull-to-par should reassert once volatility subsides.

Read the full article on

Sign up to our newsletter for the latest updates

© 2017 Atlanticomnium.

Authorised and regulated by Swiss Financial Market Supervisory Authority FINMA. Authorised and regulated by the Financial Conduct Authority FCA. The information and materials on this site do not constitute any form of advice. This website and all the information contained in it does not constitute a formal commitment by the company Atlanticomnium. Any form of reproduction, dissemination, copying, disclosure, modification, distribution and/or publication of this website and all the information in it is strictly prohibited. We decline all responsibility for any errors or omissions in the contents of this website and all the information contained in it which arise as a result of electronic transmission. If verification is required please request a hard-copy version. This website and all the information contained in it should not be construed as an invitation or offer to buy or sell any securities or related financial instruments.