Quarterly Assessment of M&G Credit Income Investment Trust

M&G Credit Income Investment Trust Plc has published its quarterly review as of December 31, 2024. Central banks have maintained monetary easing while inflation ticks upward. In November, US inflation rose slightly to 2.7%, UK inflation reached an 8-month high of 2.6%, and the eurozone saw a 2.3% year-on-year increase. The Federal Reserve lowered its interest rates, mirrored by cuts from the ECB and BoE.

Political changes in the UK and the US, notably Donald Trump's election victory, significantly influenced market narratives. UK budget concerns affected gilt yields, while Trump's proposed tariffs generated uncertainty in financial markets. The collapse of French and German governments added to the European political upheaval.

Performance of the Trust was impacted by credit distress incidents, leading to a 1% NAV markdown. However, investment grade markets remained strong amid broader political volatility and investors' demand for fixed income. The Trust continues focusing on private market opportunities to enhance return prospects.