- Added 12 new positions and significantly increased weighting in 2 others;
- Although no deals failed, gains elsewhere were offset by widening deal spreads.
- An active month for new positions, including warrants, converts and called preferreds;
- The widening of spreads on a couple of converts offset the carry from the balance of the portfolio;
- We have enough dry powder to take advantage of opportunities that volatility might bring.
FIXED INCOME ARBITRAGE
- Positive performance across all segments, except on credit curve arbitrage;
- Contraction of Canadian credit spreads strongly influenced by the solid performance of US corporate debt;
- Credit risk remains low, although slightly higher. Maintaining our tactical positioning long credit and for a flattening of the CAN & US yield curve. We remain short CAN vs US bonds.