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Last checked at 
17 Mar 2026 15:42
17 March 2026
CVC Income & Growth Limited
(the Company)
Share Price Movement Update
The Board of the Company notes the recent share price movements in the Sterling and Euro share classes since the beginning of 2026 and provides the following update.
The Company's Sterling and Euro share price has fallen by more than 8% (as at close of trading on 16 March 2026). This decrease in share price is significantly more than the UBS European Leveraged Loan index which has fallen by 0.81% Year to Date (YTD) and Bloomberg European Leveraged Loan index which has fallen 0.98% YTD. The Board and the Investment Vehicle Manager consider it is reasonable to believe that the underlying portfolio's performance should broadly track the indices.
Publicly traded corporate credit versus private credit
The Company provides exposure primarily to publicly traded corporate credit, including syndicated loans and bonds. These assets differ from private credit investments in that they are actively traded in secondary markets and priced daily, rather than typically being priced quarterly which is the case for private credit.
Circa 98% of the loans and bonds within the underlying portfolio are priced daily based on traded broker marks. The Company's shares trade intraday on the London Stock Exchange, providing shareholders with daily secondary market liquidity.
Interest rate environment
Recent geopolitical developments and energy market volatility have contributed to increased uncertainty regarding the outlook for inflation and the path of interest rates during 2026. At the beginning of the year, the market had anticipated a series of interest rate reductions from the Bank of England, while the European Central Bank was expected to hold interest rates flat. However, renewed inflationary pressures, driven by energy markets, renewed supply chain issues and geopolitical developments, have contributed to a reassessment of the trajectory for interest rates in both geographies.
The Company's strategy focuses on floating-rate credit instruments, primarily senior secured loans. As a result, the income generated by the underlying portfolio is linked to prevailing base rates. In an environment where the pace of rate reductions is slower than previously anticipated, the portfolio's floating-rate characteristics may support the level of income generated by the underlying assets, subject to broader market conditions and portfolio performance.
Exposure to the software sector
Recent media coverage has highlighted concerns around sector concentration in software lending, which in some credit portfolios can represent a significant proportion of assets.
The Company has an exposure of circa 3% to software companies.
The Company's Investment Vehicle Manager notes: "The outlook for 2026 was fairly benign at the start of the year, which was reflected in credit spreads. Since then, markets have repriced software risk in both public equity and public credit markets given the fast-paced developments we've seen in AI. After the recent developments in the Middle East, markets have also started to price in higher for longer oil prices which could result in a slowdown in growth, but also higher inflation, potential supply chain issues and a reduction in consumer confidence. At this point, it's impossible to say where the conflict is heading. The portfolio continues to generate income in line with expectations, but the marks on the underlying assets move on a daily basis reflecting sentiment around the conflict and global growth. Both public equity and credit markets have repriced since the start of the year, resulting in a small negative NAV performance YTD. This shows that public credit markets are functioning."
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Enquiries:
Cadarn Capital
Email: info@cadarncapital.com
BNP Paribas S.A. Jersey Branch
Email: cvccpeolcosec@bnpparibas.com
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