Last week, the domestic equity market retraced some of it recent gains as some late reporting by ASX200 constituents surprised. As a result, the ASX200 Accumulation Index lost 1.55% in August while the Ausbond Composite Index and Ausbond Credit Index performed modestly, gaining 0.44% and 0.73% respectively. This was led by corporate credit spread tightening as debt investors responded positively to corporate result releases over reporting season. A number of issuers have taken these favourable condition in their stride with issuance in wholesale markets being well supported by institutional investors. The Evans & Partners hybrid index also had a strong month returning 1.27%. This was driven by a strong rally across bank hybrids as a the search for yield continues. Reporting season has now come to its unofficial close and results were broadly credit neutral. Revenue remained broadly flat reflecting the fragile global economy but management remain cautious and earnings were protected through cost management. We expect acquisitions and shareholder friendly activities will continue to be a common theme over the 12 months but corporate balance sheets are still risk averse. As a result, we expect corporate credit to remain well supported over the remainder of 2016 and into 2017. Primary markets remain strong with another new listed issue, Qube Subordinated Notes (Prospective ASX Code: QUBHA), oversubscribed at 2.5x. Qube upsized the deal from $200 million to $300 million and the deal was priced at the lower end of guidance. Please check our research library (click here) for other updates.