Sycomore Sélection Crédit: Portfolio Manager Comment Q1 2022
Sycomore Sélection Crédit: Portfolio Manager Comment for Q1 2022
The first few weeks of 2022 were dominated by a sharp increase in risk aversion with investors concerned over the prospect of monetary policy tightening. The invasion of Ukraine exacerbated this trend. Credit spreads widened as a result. The Itraxx Crossover index moved back to its September 2020 levels. Despite the a “flight to quality” due to the invasion, credit indices posted sharp losses during the trimester, overshadowing annual earnings which came in rather better-than-expected.