Graham Duce

“Last month’s reduction of Government debt was timely as the asset class witnessed a slight correction as fear of increased supply resulted in negative returns. We continue to favour credit of government debt but remain concerned about both the economic outlook and deleveraging process. While the current credit spread levels all but price in expected defaults associated with a recession, the amount of leverage left in the system is still unknown. Given this outlook we remain positioned within the Bluebay fund. We continue to hold some pure government debt via the Thames River Global Bond fund.”