October was marked by a strong correction in global equity markets (MSCI World TR -6.80% ) and credit spreads widening (Xover +25 bps). This risk aversion move across asset classes could be attributed to rising US Treasuries yields that touched 3.23%, continued trade tension and concerns over global growth slowdown. Up move in the US rates was triggered by positive US data and hawkish comments by Jerome Powell. It is also interesting to note that US real interest rates rose sharply while inflation break even decreased which clearly shows a tightening of financial conditions. The second half of the month saw not so stellar Q3 earnings season, for example half of Eurostoxx 600 companies have already reported and 37 of them announced profit warnings, which is higher than the five year average. 82% of S&P500 companies beat EPS estimates, with EPS growth running at 23% y/y, and surprising positively by 7%, however the forward guidance has been indicating 2018 may mark the top for corporate earnings growth. Rising raw material costs are still the most cited negative factor by companies, followed by trade war and tariffs. In this context tech has underperformed with NASDAQ down -9.20% on the month. As for the safe heavens, the Bund yield was down 8 bps and yen appreciated from YTD high 114.5 level vs the dollar. October is usually a very quiet month for convertible global issuance amid earnings blackout period. We only saw 10 deals (7 in the US, 1 in Europe, 1 in Asia, 1 in Japan) for a total of 2.1 bn USD. We have participated to the new issue of JPM/Dufry, tendering the old bond like CBs. We took some profits on Severstal 2022 with good stock performance. In the semis space, we added more exposure on the severe pullback in the names like Teradyne and Microchip. In China we have added a convex high gamma name China Railway Construction Corporation 2021 CB, we believe the company could benefit from the infrastructure investment growth. Equally in China we took profits on Kunlun Energy 2019 CB after recent stock rally. On the options side we added new positions in LVMH, Ubisoft call options after recent stocks correction and took partial profits on our Sanofi calls.