Despite the headlines, this remains a positive environment for credit.

Yields are attractive, which continues to fuel demand and in turn should help to keep spreads tight. The conservative management of balance sheets over recent years means company fundamentals remain strong. Consequently, they are well placed to ride out any potential uncertainty because of the implementation of trade tariffs.

Even in Europe, which is heavily trade dependent, it is important to remember that a large portion of the market is made up of banks, which are only indirectly impacted by tariffs. Furthermore, Germany has a strong history of adapting to material shifts in the macroeconomic landscape.

That said, this remains an uncertain environment, and we therefore believe it prudent not to position portfolios for one particular macroeconomic outcome. Rather we think it is important to focus on individual issuers, which can be expected to deliver regardless of the environment.

Examples of these can be found across all sectors, but we are finding particular opportunities in banking, pharmaceuticals and utilities. Careful analysis can help identify those companies likely to be least affected whose elevated spreads could therefore present attractive investment opportunities.