Following part 2 in our yield note series, we want to highlight our capability to participate in custom structured yield note deals with attractive terms.

Following from part 1, the details of yield note terms and how they work are explained below for those looking for a deeper understanding.

As we touched on in our January 24 portfolio update, we are allocating to structured yield notes with favorable terms to drive strong risk adjusted returns for investors with a built-in level of downside protection.

Below are the key investment themes for the year and a more detailed update on our 2023 investment strategy. Overall, the range of potential outcomes is wide. There is good reason to be optimistic, although the possibility of a more significant recession and further equity downside can’t be discounted either.

There’s been plenty happening in markets and the world cup is moving into the knockout phase (go US)! Equities have staged a comeback rally as we move towards the end of the year, with the S&P500 rising +5% over the month.

We’re taking advantage of higher interest rates through the purchase of short-term treasuries with cash in accounts, so that investors get a higher yield on their cash.

Yesterday, the S&P500 had its strongest day of the year in 2022, rallying 5.5% on the back of a better-than expected inflation result.

In a challenging 2022 for markets, we’re starting to see more opportunities emerging in the bond market (specifically in US treasuries).

This week, stocks and bonds were down after the Federal Reserve again raised interest rates by 0.75%.

The S&P500 has pulled back over the last two weeks as the market digests a slightly more hawkish tone from the fed.

After a significant pullback this year, we’ve seen a strong month of returns for our portfolio companies and for the S&P500. Today we want to share a historical perspective on rallies during down markets (so called ‘Bear Market Rallies’) and evaluate the situation equity markets are facing.

Moving into the third quarter, we wanted to provide an update on the first half of 2022 and our outlook looking forward for the rest of 2022.

This month we have continued to see somewhat of a slowdown in economic data as we move further into the rate hike cycle (the fed raised interest rates by 75 basis points last week) and inflation remains high.

Today’s CPI print came in above expectations at 8.6% year on year, which is the highest rate of inflation we’ve seen in America since 1981.

Over the last week we’ve seen an uptick in volatility in equity markets.