{"id":73221,"date":"2026-04-08T14:31:13","date_gmt":"2026-04-08T21:31:13","guid":{"rendered":"https:\/\/penderfund.com\/?post_type=commentaries&p=73221"},"modified":"2026-04-08T14:31:13","modified_gmt":"2026-04-08T21:31:13","slug":"pender-corporate-bond-fund-march-2026","status":"publish","type":"commentaries","link":"https:\/\/penderfund.com\/fr\/commentaries\/pender-corporate-bond-fund-march-2026\/","title":{"rendered":"Pender Corporate Bond Fund - March 2026"},"content":{"rendered":"

The late February initiation of hostilities in the Persian Gulf augured in a challenging month for the Pender Corporate Bond Fund, which ended March down -2.2%1<\/a><\/sup>. The market reacted to the US-led Iran bombing campaign by widening spreads in corporate credit and pushing benchmark yields higher across the curve, effects which impacted Fund holdings.<\/p>\n

A source of particular weakness in March was our weight in the precious metals sector, where holdings such as First Majestic Silver Corp (AG) and Equinox Gold Corp (EQX) convertible bonds retrenched in sympathy with declining metal prices.\u00a0 However, a partial offset in this situation was our gain from declining values of call options which we had written against our look-through equity exposure in the miners.<\/p>\n

Other significant decliners included positions in the Esperion Therapeutics Inc. (ESPR) and Cardlytics Inc. (CDLX) capital structures. As with the miners, we continue to like the longer-term prospects of these issuers and so we selectively added to positions during the volatility.<\/p>\n

A key positive factor in March was our weight in Oil and Gas sector companies. An area that is the largest single industry weighting in the Fund, in which we hold a greater than 10% position in producers and service companies in the fossil fuel sector.\u00a0 Leading the way in this sector was our position in Gran Tierra Energy Inc. (GTE) 9.5% notes, which rallied on the completion of a liquidity-enhancing exchange offer, and our position in Northern Oil and Gas Inc. (NOG) convertible bonds, which gained 4% in March.<\/p>\n

Fixed Income Investing in a Higher Inflation Environment<\/h3>\n

In early 2026, we believe we are seeing a fundamentally driven trend towards higher inflation. There are four key drivers in our view. First<\/strong>, the collapse of a free trading global economic system results in less efficient, more expensive production of goods and services. Second<\/strong>, the end of the benevolent pax Americana that had prevailed since the end of the Cold War has brought with it more wars, which are inherently inflationary. Third<\/strong>, the increasing economic impacts of climate change, including rising insurance premiums and increased need for non-productive emergency repairs to infrastructure. And fourth<\/strong>, as interest rates have risen, heavily indebted governments are left with increased fiscal deficits, for which the simplest remedy, debt monetization, is ultimately inflationary.<\/p>\n

If we are correct in assessing the environment as inflationary, what is a fixed income manager to do? We think there are a number of attractive areas, including:<\/p>\n