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 Market Comment - March 2014

Not only the mild temperatures in Central Europe were suitable to please credit investors over the past weeks, the market performance of credit in comparison to many other asset classes contributed as well to a confident mood. Given the presence of emerging market woes and the Crimean crisis during the first quarter, credit spreads remained remarkably stable year-to-date. The technical strength of credit has certainly been evident in Q1, with total returns in Investment Grade well over 2.2% ytd and with those running a high beta stance doing a bit better while High Yield has exceeded the 2.5% mark year-to-date.

Financial Seniors outperformed Non-Financials in corporate cash bonds (both in March and in 1Q14), as the average credit spread of the latter showed better spread performance. In Non-Financials, the Oil & Gas and Basic Resources sectors were the worst performers. The spread widening (related to the Crimean crisis) impaired the total return in these sectors due to a negative total return contribution in March. The credit derivatives market – normally more driven by shifting broader market sentiment than by real credit-related fundamentals - showed strong resilience to the latest headline news with all main iTraxx indices moving more or less sideways.

(Source YCAP AM ; April 2014)

 

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Welcome to YCAP Asset Management

YCAP Asset Management is an independent investment management company offering tailor-made investment solutions to institutional investors

The differents entities of YCAP in Europe are approved by AMF (French), CSSF (Luxembourg) and ASG (Switzerland)

What does it mean (mainly)?

  • To monitor closely investment process, risk management and communication policy
  • To have the skills and capacities to manage safely each investment program
  • To be sufficiently capitalized to act as asset managers

YCAP operates from Paris (HQ), Geneva and Luxembourg to offer dedicated investment solutions with a close relationship to his European investors