The macro tape continues to reward patience. Growth is slowing from the summer pace while inflation progress remains uneven. The term premium drifted higher again during late September which kept longer yields sticky even as the market penciled in additional cuts for 2026. That cocktail kept duration a headwind and made spread income do most of the lifting.
Credit remains broadly resilient, but leadership has narrowed. Lenders are tightening. Refi risk is the tell in real estate and in pockets of private credit that were priced for perfection. This is the kind of environment where our mandate shines. We do not need blue-sky narratives. We need durable coupons from businesses with real assets, senior claims, and managements that understand capital.
