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Rethinking High Yield: HAGIM GmbH launches an actively managed UCITS Fund for Institutional Investors
Frankfurt am Main, October 15, 2026 – HAGIM GmbH is launching a new UCITS fund for Institutional Investors with the HAGIM High Yield DM Plus (ISINs: DE000A4207N7, DE000A4207M9, DE000A4207P2). The fund’s objective is to generate a risk-adjusted excess return over the long term, independent of short-term fluctuations, through active bond selection within the high yield universe.
Automotive Sector: The Clock Is Ticking
German automakers have not yet been able to stabilize their profitability. For now, most are offsetting the rising business risk with robust balance sheets—but they must use this time to make structural adjustments.
10 Reasons to Rethink HIGH YIELD
The European high-yield market has undergone a fundamental transformation over the past 15 years: what was once a procyclical yield niche has evolved into a mature, diversified institutional asset class.
The New Divergence in Credit
Rather than geopolitical risks or growth concerns, another trend is currently shaping the credit markets: the growing divergence between government and corporate balance sheets. While many governments continue to increase their debt, companies are responding to higher financing costs with balance-sheet discipline and debt reduction.
Rethinking High Yield
Over the past decade and a half, the European high-yield market has undergone a structural transformation that has rendered its traditional classification as a procyclical yield niche obsolete.
Where oil price risk is actually priced in credit
The recent escalation in the Middle East, particularly around Iran, has once again put the oil market in the spotlight – but for credit investors the really relevant question is a different one: Where is oil price risk even compensated for in credit? The answer is neither trivial nor intuitive – and has direct consequences for portfolio construction.
The best high yield we’ve ever had!
Credit default rates in high yield are falling and is the market underestimating this development? A current analysis by Moody’s shows: Credit losses in the Ba, B and Caa rating categories are declining over time. In addition to better rating quality and lower duration, stricter regulation, greater transparency, active central bank interventions and more efficient restructuring have structurally changed the market environment.
Optional morality: The cool calculation in the high yield market
Should companies meet the CO2 reduction targets set by sustainability-linked bonds (SLBs), or would it be better to pay a penalty?
When market leaders stumble – dynamics in the advertising industry
Market leadership is not a sure-fire success – even in supposedly stable sectors such as the advertising industry. What was considered a solid position for years can be eroded by operational weaknesses and strategic mistakes. The latest shifts in the sector show this: Competitive position and credit quality are directly linked. For active credit investors, this results in both risks and opportunities.
Investing in Times of Convergence and Regime Change: Real Estate Debt as a Tailored Component of High-Yield Portfolios
The real estate market offers institutional investors a wide range of investment opportunities. In terms of property types, a distinction is made, for example, between office, retail, logistics, industrial, hotel, life sciences, data centers, and residential properties.
Senior secured high-yield bonds: More appearance than substance?
Senior secured high-yield bonds suggest security, but without genuine subordinated debt they often bear the full burden of losses in the event of insolvency. In the European high-yield market, the proportion of secured issues has risen sharply in recent years, which has diluted the economic value of seniority.
Focus on Brazilian Corporate Bonds: An Analysis of Recent Market Developments
Brazilian corporate bonds are not benefiting from the strong year in emerging markets. The recent weakness reflects an event that upset the balance in a market where macroeconomic conditions had already been weighing on corporate bonds for some time.
Consequences of the Structural Convergence of Emerging and Developed Market Debt
The traditional segmentation of credit markets into developed markets (DM) and emerging markets (EM) is becoming increasingly out of step with today's market structures.
Divergence in the chemicals sector
Since the middle of the year, the spread difference between EUR investment grade and high yield chemicals has widened significantly. This divergence can be explained fundamentally and opens up selective opportunities.
Defensive sectors face challenges: Growing dispersion among utilities
Utility bonds have always been regarded as the epitome of defensive investments. However, this sector is increasingly exposed to a field of tension between regulation, politics and demand. At first glance, this development is hardly visible, but there is growing heterogeneity within the sector.
Rising Stars vs. Fallen Angels: New dynamics in the European high-yield market
The European high-yield-market has long experienced a dominant phase of “Rising Stars”. This trend will reverse in 2025: Higher refinancing costs and geopolitical risks will lead to more downgrades of “Fallen Angels”. Investors must now manage risks more closely.
Emerging Markets Bonds: Hidden Opportunities for Investors
The risk premiums of emerging market bonds are approaching their historic lows, making the market segment appear relatively expensive at first glance. However, those who only look at the surface overlook the fact that the credit quality and resilience of the market have improved noticeably in recent years. At the same time, local growth momentum remains positive.
Prospects Q3 2025
Half a year of upheaval—yet risk premiums remain virtually unchanged. Is the calm in the credit market deceptive? Or does it reflect genuine resilience? Read on to learn where we see the positives and negatives in the current credit environment.
Recap: Comparison of the credit markets – 2024 vs. 2025
How reliable were our analyses and forecasts in last year’s dynamic market environment? In the following review, our Senior Portfolio Manager Steffen Ullmann takes stock of our assessments in the investment grade market in 2024 in an open and well-founded manner.
New issuance activity in European high-yield bonds – driven by rising interest rates and volatile risk premiums
Germany’s shift away from austerity—for example, through a 500-billion-euro infrastructure package and increased defense spending—has dampened hopes for falling interest rates. At the same time, Trump’s “Liberation Day” has shown just how quickly low risk premiums can come to an end.
Energy service providers in transition – consolidation should strengthen credit quality
The current weakness in oil is leading to higher risk premiums – but beneath the surface, the sector is changing fundamentally. The ongoing consolidation in the oil service segment is structurally strengthening business models, improving cash flow quality and creating new investment opportunities. Why selective credit investors should now take a particularly close look.
Gold miners in credit focus: operational strength meets structural limits
Gold price at record levels – but what does this mean for credit quality? While the operating figures of many gold miners are improving in the short term, structural limitations remain. Strong operating environment, but structural hurdles
25 years of the Euro Investment Grade Market: a European success story with question marks
It was a time of great hopes and bold visions: When the euro saw the light of day a quarter of a century ago, its architects dreamed of a currency that would stand up to the dollar. Today, 25 years later, the evolution of the euro investment grade market tells a fascinating story – albeit one with surprising twists and turns and a thoroughly ambivalent finale.
Rethinking credit: A new market regime requires new principles
We are not living at the beginning of change, we are deep within it. April 2, 2025 will go down in history as a turning point. What was once celebrated as a rules-based, open global trading system is under threat – pressured by its creator.
EUR Credit bucking the trend – but how long will the resilience last?
The EUR credit market has recovered significantly since the beginning of the year. Spreads have fallen from 95 basis points to 79 basis points in the meantime – even geopolitical uncertainties and structural fiscal changes in Germany have not slowed this trend. At the same time, the spread to USD credit markets has narrowed to a historically low level. But is this a sign of strength – or a warning signal?
End of the Reverse Yankee boom? Interest rate turnaround in Europe changes the market for Euro US bonds
Reverse Yankees – Euro bonds issued by US companies – started the year strongly, but the interest rate turnaround in Europe has put an abrupt end to the boom. The shrinking interest rate differential is making EUR bonds increasingly unattractive as a source of refinancing – is there now a threat of a lasting market shift?
Preference for short and medium-term financing – Will companies’ bet on low yields pay off?
Following a phase of issuance strikes due to higher interest rates, new issuance of European high-yield bonds is picking up again. However, issuers remain reluctant to commit to the current yield level in the long term and prefer short and medium maturities. Will the bet on further falling yields pay off?
New issue premiums under pressure – credit selection is becoming a decisive success factor
In recent years, the new issue premium has been a reliable source of returns for bond investors. In the current market environment, this advantage is increasingly disappearing. Especially in these challenging times, active management must demonstrate its added value.
European high yield bonds – Unstoppable despite global uncertainties
Despite the threat of a trade war, zero growth in Germany and political uncertainty in Europe, the market for high yield corporate bonds is showing remarkable resilience. Risk premiums have been on a downward trend since mid-2022 and spreads for euro high yield bonds have reached their lowest level since mid-2017. But what does this mean for investors?
Euro High Yield – An alternative to the 60/40 portfolio
Can high yield corporate bonds keep up with a traditional 60/40 portfolio? Our analysis shows: since 2003, European high yield bonds have achieved a similar performance to a traditional 60/40 allocation and with less volatility. A differentiated look at the facts and implications for institutional investors.
Macroeconomic pressures and corporate stability: BBB bonds under scrutiny
The upcoming reporting season is an important indicator of whether current company valuations are still justified in the context of a disappointing European economy.
European High-Yield Bonds: Close Your Eyes and Collect the Coupon!
European High-Yield Bonds: Stable coupons are the foundation of long-term performance; active management can open up additional opportunities.
Automobilsektor: Herausfordernde Zeiten
Current developments in the automotive sector reflect a return to normalcy rather than recessionary conditions. For now, most automakers are still able to offset this risk thanks to their currently robust balance sheets. However, the industry must now follow through on its promises. Therefore, we remain selective despite higher spreads.
European High-Yield Bonds
European high-yield bonds offer greater predictability of returns due to their high coupons and low duration. Through skillful portfolio construction, these returns can also be tailored to investors’ individual needs.
European High-Yield Bonds in a Rate-Cutting Cycle
How have high-yield bonds historically performed at the start of an interest rate cut cycle? We’ve taken a closer look and will explain how the markets have historically performed during such phases.
Normal and Inverted Spread Curves
Normally, longer-term corporate bonds command higher risk premiums as compensation for the increased uncertainty. In times of stress or crisis, however, this can temporarily reverse, and shorter-term bonds may exhibit comparable or even higher spreads!
Will We See a CCC Comeback?
Despite an overall positive environment for European high-yield bonds, investors in CCC-rated bonds have had little to celebrate this year. Several major issuers in the high-yield sector were downgraded to CCC. However, after a weak start to 2024, the segment appears to have found a bottom by the end of April.
HAGIM Partnership with CMC
HAGIM’s partnership with China Merchant Capital leads to its first infrastructure investment in Asia.
Credit Risk Premiums in the European Aviation Sector
European airlines are showing signs of recovery, with profits back at 2018 levels. However, high leverage is undermining their financial resilience. An investment in these bonds therefore requires careful consideration, especially given the currently low risk premiums.
Innovation and Investment Security
The success of Chinese electric vehicles is remarkable. Learn how this breakthrough is affecting risk premiums in the bond market and what implications this has for investors.
Increase in High-Yield Bond Issuance Activity
The new issue market for European high-yield bonds is in full swing and should dispel concerns about the “maturity wall”! This makes the market attractive despite slightly lower yields!
Declining Average Remaining Maturity in the European High-Yield Market
The average remaining maturity of the European high-yield market has declined significantly over the past two decades. The following article explains why this has happened and what advantages and disadvantages it presents for investors!
Securing Predictable Returns
In the current market environment, corporate bonds from issuers with high credit ratings continue to offer, in our view, the more attractive opportunity to secure predictable, steady returns over the medium term.
Positive Economic News
With a further improvement in the Eurozone’s Purchasing Managers’ Indexes in April, the economic recovery in Europe continues. Historically, however, risk premiums have generally not fallen further during this phase of the economic cycle.
Improved Investment Environment for Private Debt in Italy
The positive performance of the Italian economy, driven by changes in macroeconomic conditions, is increasingly reflected in the capital markets and is being recognized by investors.
The Recent Rise in Cocoa Prices
The recent sharp rise in cocoa prices could prove to be a boon for Côte d’Ivoire’s government bonds. While other cocoa-producing countries such as Ghana are struggling with lower harvests, the positive price effects could more than offset the moderate decline in output in Côte d’Ivoire, strengthen the country’s current account balance in the long term, and have a positive impact on the risk premiums on its government bonds.
Debt Reduction Instead of Dividends
More and more companies with weaker credit quality in the investment-grade segment are cutting their dividends to prevent a downgrade into the high-yield segment. However, this shift offers exciting opportunities for active investors. Learn more in this Spotlight!
ESG at the Corporate Level at HAGIM
ESG is becoming increasingly important at the corporate level as well!<br/>At HAGIM, we are constantly striving to reduce our CO₂ emissions and contribute to an environmentally friendly future as a company. One way to offset our carbon footprint, for example, is by investing in certified climate protection projects.
Attractive Coupons on FRNs
The risk premiums on corporate bonds are low and the hoped-for interest rate cuts could fail to materialize!
The Market Is Healing
The high-yield market is shrinking… and that’s a good thing!<br/>Since its peak in early 2022, the European high-yield bond market has shrunk significantly. Does the market have a problem?
U.S. Inflation in January 2024 – Should Expectations for Interest Rate Cuts Be Revised?
At first glance, the January inflation figures in the U.S. look promising. However, we believe that the market consensus regarding interest rate cuts in the middle of the year remains too optimistic.
Rising Refinancing Costs Despite Lower Risk Premiums
Despite lower risk premiums, refinancing costs have risen again since the beginning of the year due to underlying interest rates. We therefore maintain that a very thorough fundamental analysis is essential, particularly when selecting high-yield securities.
Rising Stars – What’s Next?
Rising Stars were one of the most successful credit themes in 2023, and in our view, current trends continue to support this theme. Given the significant decline in potential returns, we are currently focusing on a select few promising candidates.
HAGIM Plans Collaboration with China Merchants Capital
Following numerous discussions and intensive negotiations over the past few months, H&A Global Investment Management (HAGIM) and China Merchants Capital (CMC) agreed on January 19, 2024, to enter into a close collaboration for equity investments in the infrastructure sector.
The Air Is Getting Thinner
Does a narrowing of risk premiums signal the prospect of negative performance?No matching posts found
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