- Added 7 new positions on slow M&A activity;
- Deal spreads remain tight reflecting the lack of investment opportunities, but transactions are closing with regularity.
- We successfully captured volatility, but gains were offset by 3 positions. 2 have a good chance of recovery; the first negative credit event in several years;
- We remain defensive with our focus on hedging rather than adding new positions.
FIXED INCOME ARBITRAGE
- Positive performance across all sub-segments; Credit markets are “risk-on” with spreads contracting;
- Positioning remains defensive. Maintaining our position for a steepening of the CAN & US yield curve and long CAN vs US bonds.