Corporate Bonds

In investment grade, several hyperscalers raised capex projections, driving record-breaking bond issuance. AI-related investments are heightening correlation risks and reshaping index compositions. In high yield, AI disruption creates risks and opportunities, particularly in software. The AI-capex trend has impacted the Swiss bond market, where new issuance remained elevated.

Discover how developed and emerging market corporate bonds may offer stability, diversification, and alpha opportunities. With yields at multi-year highs and improving fundamentals, our experts believe now is the time to unlock the hidden potential of corporate bonds in your portfolio.

We remain cautiously optimistic about Fixed Income returns. Tail risks are elevated, which dampens our confidence in “risk on” markets. But alpha opportunities still await risk-aware, active investors. Those who try to predict the next major macro shift may find themselves echoing Luke Skywalker’s words, “your overconfidence is your weakness.”

There is little disagreement among investors and economists that the last few years have been highly unusual in many respects. An inflationary shock in developed markets, one of the fastest rate hiking cycles on record, the worst year in decades for government bonds (2022), and mild recessions with no movement in unemployment are just a few of the dynamics that have strayed from recent norms.

Consensus expectations are that we could be nearing the end of the rate-hiking cycle. What does this mean for fixed income investors and Global Investment Grade in particular, and how do these typically change at the inflection of rate cycles?

Short-term government bonds have enjoyed heightened levels of attention this year, but what will give fixed income investors that extra performance boost as the finish line for 2023 draws closer? Our Fixed Income Boutique’s corporate bond team shares five reasons why switching to actively managed investment grade bond funds could deliver that extra edge.

As the US Federal Reserve meets this week, what should investors brace for? Our Head of Corporate Credit Mondher Bettaieb Loriot suggests Fed officials are likely to hit the pause button on rate hikes as inflation and growth keep trending down. Across the Atlantic, however, the European Central Bank might not be ready to apply the brakes just yet.

After the “great repricing” of 2022, is corporate credit now ready for takeoff? Our corporate credit experts, Mondher Bettaieb Loriot and Christian Hantel, analyze the reasons behind the revival of high-grade corporate credit and explain why they remain optimistic about investment-grade markets in Europe and the US.

2022 was a stormy year for bonds. As 2023 gets under way, our Fixed Income Boutique heads predict whether bonds are set for a smooth touchdown or a bumpy landing amid the continuing headwinds in the global economy.

Traditional investment strategies unraveled in 2022 amid geopolitical and energy crises. As 2023 gets under way, these negative trends have started reversing, giving our Corporate Credit team comfort about the prospects for the European investment grade credit market in the months ahead.

Welcome to 2023! At the start of the new year, bonfire rituals across the globe celebrate the time for renewal. Our Global Corporate Bond team have evaluated perspectives for the market by asking themselves the ten most burning questions for the year ahead – and finding the answers.

The Corporate Credit team reveals how they plan to navigate the fourth quarter of 2022