IN BRIEF: M&G Credit second-quarter NAV total return beats benchmark
M&G Credit Income Investment Trust PLC - debt investment firm - Delivers second quarter net asset value total return of 1.95%, compared with 1.88% for its benchmark. Says outperformance was supported by income generation, trading gains and the positive impact of credit spread tightening across parts of its portfolio. Public purchases during the quarter focused on "high yield and investment grade opportunities where compensation appeared attractive relative to the underlying credit risk," M&G says. This includes GBP1.9 million across high yield issues from TDC, SoftBank Corp, Ineos Finance, AMS-Osram and the Co-operative Group. Additionally, purchases GBP2 million of a lower mezzanine tranche in a public commercial mortgage-backed security issued by affordable and social housing provider SAGE. Calls private market deployment "also meaningful". In total, deploys north of GBP9 million "across a diverse range of private credit sectors and asset types." This includes a secondary market purchase of debt linked to one of Europe's largest independent bulk-terminal operators; investments in first loss and mezzanine tranches of two regulatory capital transactions; a senior real estate loan refinancing a prime London office asset; and debt secured against future receivables linked to an Italian road project. Read More