The end of the quarter was marked by a resurgence of geopolitical tensions in the Middle East. Against this backdrop, the markets sharply revised their expectations regarding monetary policy. In the eurozone, expectations of rising interest rates reflect f ears of further inflationary pressures. The renewed aversion to risk prompted issuers to adopt a cautious stance during March.

Our Strategy

a-desjardins
In light ofthis paradigm shift, the volatility seen in short -tem interest rates has led us to adopt a cautious approach to our investment.
Albane Desjardins Gérante de portefeuille, Crédit Investment Grade

• In the run -up to the outbreak of the conflict, we capitalised on opportunities in the primary market by investing in attractive issues that allowed us to diversify the portfolio with issuers not included in the money market universe.

• Some issuers enhanced the attractiveness of their financing by adjusting their issue spreads. We exploited these entry points to increase our exposure to high -quality credit signatures.

• With the resurgence of the conflict, short -term rates have priced in a scenario of rapid ECB rate rises, creating particularly attractive entry points.