Episode 94 – Quarterly Fixed Income Update
April 21, 2022

Episode 94 – Quarterly Fixed Income Update

In this episode Geoff Scott, Senior Vice President Investments, is joined by Geoff Castle, Portfolio Manager of the Pender Corporate Bond Fund (PCBF), and Emily Wheeler, Associate Portfolio Manager of Pender’s Fixed Income mandates.

Subtitle: Optimism for the future but defensive for the present

In this episode Geoff Scott, Senior Vice President Investments, is joined by Geoff Castle, Portfolio Manager of the Pender Corporate Bond Fund (PCBF), and Emily Wheeler, Associate Portfolio Manager of Pender’s Fixed Income mandates. Together they look at last quarter’s performance and discuss in depth the global challenges that are impacting credit markets, ranging from geopolitical challenges to rising inflation and interest rates. The team also outlines how they are positioning Pender’s fixed income funds defensively and what measures they are taking to ensure forward momentum. They highlight a few portfolio holdings in detail. The podcast ends with a shared book recommendation from the team.

Key Takeaways

[01:20]Geoff Castle provides an in-depth analysis on Pender Corporate Bond Fund’s relative performance and the measures the team took to ensure the Pender fixed income funds were somewhat buffered against global challenges.
[03:25]Emily follows up with how the Pender Bond Universe Fund fared and investment tactics deployed in the current environment.
[05:10]Emily and Geoff discuss some of the strongest contributors for the quarter. Geoff cites Royal Caribbean Cruise Lines and Emily discusses PolyCom among others.
[10:05]Geoff discusses his thinking about the current market environment.
[14:14]Geoff provides more insight on inflation and how the fund is being positioned in response to rising inflation and discusses a few holdings along with some technical background on the team’s strategy.
[16:00]Emily adds to the discussion with examples of recent moves, including Treehouse Foods.
[19:27]Emily discusses the way forward for investment grade, including the time vs price payoff and Maple Bonds, such as Pepsi Maple and McDonalds Maple.
[21:15]Geoff answers questions on yield curve inversion, the possibility of a recession in the future and economic growth stagnation.
[25:06]Emily and Geoff provide a book recommendation.