{"id":74618,"date":"2026-09-04T11:28:48","date_gmt":"2026-09-04T18:28:48","guid":{"rendered":"https:\/\/penderfund.com\/?post_type=commentaries&p=74618"},"modified":"2026-09-08T11:30:36","modified_gmt":"2026-09-08T18:30:36","slug":"pender-corporate-bond-fund-august-2026","status":"publish","type":"commentaries","link":"https:\/\/penderfund.com\/fr\/commentaries\/pender-corporate-bond-fund-august-2026\/","title":{"rendered":"Pender Corporate Bond Fund - August 2026"},"content":{"rendered":"

The Pender Corporate Bond Fund enjoyed a positive month in August, returning 1.6%1<\/sup><\/a>\u00a0within the context of a fairly benign credit market that was buffeted at points by rising benchmark yields.<\/p>\n

Precious metals exposure led the charge for the Fund, with our position in the convertible notes of South African platinum miner Sibanye Stillwater<\/strong> Ltd. (<\/strong>SBSW<\/strong>)<\/strong> up over 30% in August. Equinox Gold Corp. (EQX) <\/strong>et First Majestic Silver Corp. (AG)<\/strong> also posted sizeable gains as the category moved in unison. We did make some small rebalancing trims to the precious metals exposures toward the end of the period.<\/p>\n

Oil and gas investments also contributed well. Our position in McDermott International Ltd. (MCDIF)<\/strong> reorganization equity rallied off the back of its deeply discounted rights issue. Several convertible positions in the oil sector such as Crescent Energy Co. (CRGY)<\/strong> performed well in line with rising crude prices.<\/p>\n

There was more than just resources working for the Fund in August, as our position in the distressed term loan of insulin consumables supplier Embecta Corp. (EMBC)<\/strong> rallied over 7% on a favourable earnings report. And rounding out large contributors, positions in silicone carbide semiconductor materials player Wolfspeed Inc. (WOLF)<\/strong> rose on news that new Nvidia AI chipsets are being specified to run on their high melting point substrate.<\/p>\n

Offsetting some of the strength above was weakness in the distressed bonds of Lucid Group Inc. (LCID) <\/strong>which fell to the 40s on continuing profitability problems. We continue to like Lucid due to its solid support from the Saudi Public Investment Fund as well as what we view as leading technological position that makes the company well-suited for future merger or partnership opportunities.<\/p>\n

On Unsustainable Sovereign Debts and the Path of Least Resistance<\/h3>\n

It is dizzying to watch the headlines spin by regarding various attempts by the Bank of Japan, the Fed, the US Treasury and others to contain the rise of longer-term government bond yields. We believe that, rather than chasing to understand every headline and mini crisis of the sovereign bond market, investors should start with some foundational ideas against which the news of the moment can be put in context.<\/p>\n

The key fact set to consider includes the following:<\/p>\n