Fixed Income Monthly Comments - July 2026
Strata Credit Fund
During July, credit markets remained broadly constructive despite intermittent volatility across risk assets. Periods of weakness in technology-related equities and ongoing geopolitical uncertainty did not materially disrupt market functioning, with liquidity remaining supportive and primary issuance continuing across both corporate and structured credit markets. New issue activity was met with healthy demand and, in several cases, pricing tightened from initial guidance, highlighting the continued search for yield and supportive technical conditions.
From a macroeconomic perspective, investor attention remained focused on the interaction between geopolitical developments, energy markets and central bank policy expectations. Market participants increasingly judged that the risk of a prolonged energy shock had moderated, while signs of softer commodity demand and easing oil prices helped alleviate some inflation concerns. At the same time, central banks continued to emphasise a patient and data-dependent approach, reinforcing the view that the hurdle for further policy tightening remains elevated.
Looking ahead, potential positive catalysts include further stabilisation in energy markets, continued resilience in corporate fundamentals and sustained access to primary market funding. However, risks remain tied to geopolitical developments, technology-sector volatility and the possibility that tighter financial conditions begin to weigh more materially on weaker issuers. Credit developments during the month also reinforced the importance of distinguishing between strong and challenged business models, particularly within more leveraged segments of the market.
Against this backdrop, the fund remains positioned with a measured and flexible mindset. Portfolio construction continues to be deliberately barbelled, combining elevated liquidity with predominantly short-dated risk exposures and a disciplined hedging framework. Our conviction remains that market dispersion is likely to increase further, creating opportunities for selective deployment of capital. We therefore continue to prioritise rigorous bottom-up credit analysis, active risk management and the preservation of liquidity to respond effectively to potential market dislocations.
Global Bond Total Return
During July 2026, global sovereign bond markets experienced a notable sell-off as yields rose across major developed economies. The US 10-year Treasury yield climbed more than 25 basis points, starting the month around 4.45% and ending near 4.74%, driven by persistent inflation concerns and a hawkish reassessment of the Federal Reserve’s policy path. Similarly, the German 10-year Bund yield surged, moving from 2.86% at the end of June to finish July in the upper 3.1% range following Middle East prolonged conflict. In foreign exchange markets, the US dollar weakened slightly against the euro, with EUR/USD ending the month modestly higher above the 1.15 level.
Concurrently, credit markets faced moderate headwinds as global investment grade corporate spreads widened, reflecting a slight deterioration in investor sentiment amid the higher-for-longer interest rate narrative.
At the portfolio level, rates were the main detractor, while credit and FX contributed for a small negative. The negative impact from credit directly aligned with the widening of global investment grade spreads, and the FX detraction was driven by the slight weakening of the US dollar.
In terms of portfolio activity, we have switched some of our GBP duration into USD one to capitalise on shifting relative value. Overall duration has been slightly increased to take advantage of the higher absolute yield levels.
At month-end, the RAM (Lux) Tactical Funds – Global Bond Total Return Fund’s (Class B USD*)maintained a duration of 5.8 years, an average credit quality of AA-, and a yield of 5.4%.**
*The performance is gross of management fees and operational costs (0.60% management fee and 0.40% of operational costs, for a TER of approximately 1%). Please click on the above link to access the fund factsheet and obtain a global overview of performance since inception. Past performance is not a reliable indicator of future returns.
** Credit Rating: is a parameter used by banks and lending institutions to determine whether an applicant is deserving of the confidence necessary for the granting of a loan. This parameter makes it possible to measure the risk of consumer default and determine the economic conditions applicable to consumers. The highest rating is indicated by the letters: AAA. This is the indication of highest financial security. This is followed by: AA, A, BBB, BB, etc. The lowest credit rating corresponds to the letter C. This letter identifies a high risk of financial default and is a figure taken into great consideration by each lending institution.
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Legal Disclaimer
The Strata Credit Fund is a Sub-Fund of RAM (Lux) Tactical Funds II, a Luxembourg SICAV with registered office: 14, Boulevard Royal L-2449 Luxembourg, approved by the CSSF and constituting a UCITS (Directive 2009/65/EC). The sub-fund STRATA CREDIT FUND was created in the RAM (LUX) Tactical Funds II SICAV to receive the PALLADIUM FCP – RAM Mediobanca Strata UCITS Credit Fund sub-fund. The transfer was effective on 30th May 2024.
Please note that the performance shown reflects periods before the Sub-Fund’s transfer and was achieved under different regulatory and operational conditions, which may no longer apply. Notwithstanding this, the performance is based on investment objectives and policies that have not materially changed following the sub-fund's transfer and is attributable to investment objectives, policies, restrictions, and strategies that are compliant with UCITS regulations. The investment management function remains consistent, with no changes to the team responsible for managing the fund after the transfer. Importantly, there has been no material change in the level of fees charged to investors as a result of this transfer. For further information, please refer to the Prospectus.
The RAM (Lux) Tactical Funds – Global Bond Total Return is a Sub-Fund of RAM (Lux) Tactical Funds a Luxembourg SICAV with registered office: 14, Boulevard Royal L-2449 Luxembourg, approved by the CSSF and constituting a UCITS (Directive 2009/65/EC).
Please note that the share classes mentioned in this document may not be registered in your country of domicile.
This marketing document is only provided for information purposes to professional clients, and it does not constitute an offer, investment advice or a solicitation to subscribe shares in any jurisdiction where such an offer or solicitation would not be authorised or it would be unlawful. In particular, the Funds are not offered for sale in the United States or its territories and possessions, nor to any US Person (citizens or residents of the United States of America).
This document is confidential and is intended only for the use of the person to whom it was delivered; it may not be reproduced or distributed.
There is no guarantee that the holdings shown will be held in the future. The investment described concerns the acquisition of shares in the Sub-Fund and not in a specific underlying asset.
Past performance is not a guide to current or future results. There is no guarantee to get back the full amount invested. The performance data do not take into account fees and expenses charged on subscription and redemption of shares nor any taxes that may be levied. As a subscription fee calculation example, if an investor invests EUR 1000 in a fund with a subscription fee of 5%, the investor will pay to his financial intermediary EUR 50.00 on the investment amount, resulting with a subscribed amount of EUR 950.00 in fund shares. In addition, potential account keeping costs (by investor’s custodian) may reduce the performance. Some shares in the Sub-Fund apply a performance fee. Leverage intensifies the risk of potential increased losses or returns.
The Management Company may decide to terminate the marketing arrangement in place in any given country in accordance with Article 93a of Directive 2009/65/EC.
Changes in exchange rates may cause the NAV per share in the investor's base currency to fluctuate.
Particular attention is paid to the contents of this document but no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof.
Prior to any transaction, clients should check whether it is suited to their personal situation, and analyse the specific risks incurred, especially financial, legal and tax risks, and consult professional advisers if necessary.
Please refer to the Key Investor Information Document and prospectus with special attention to the risk warnings before investing. This Sub-Fund is classified as art.8 SFDR. For further information on ESG, please refer to
https://www.ram-ai.com/en/regulatory-information and the relevant Sub-Fund webpage, section "Sustainability-related disclosures".
The prospectus, constitutive documents and financial reports are available in English and French while PRIIPs KID are available in the relevant local languages. These documents can be obtained, free of charge, from the SICAVs’ and Management Company’s head office and www.ram-ai.com, its representative and distributor in Switzerland, RAM Active Investments S.A. and the relevant local representatives in the distribution countries.
Issued in Switzerland by RAM Active Investments S.A. which is authorised and regulated in Switzerland by the Swiss Financial Market Supervisory Authority (FINMA). Issued in the European Union and the EEA by the authorised and regulated Management Company, Mediobanca Management Company S.A. 2 Boulevard de la Foire, 1528, Luxembourg, Grand Duchy of Luxembourg.
The source of the above-mentioned information (except if stated otherwise) is RAM Active Investments and the date of reference is the date of this document.
Swiss representative: Swiss Paying Agent:
RAM Active Investments S.A. CACEIS Bank, Montrouge, succursale de Nyon/Suisse
Rue du Rhône 8 Route de Signy 35
CH-1204 Genève CH-1260 Nyon
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