[et_pb_section fb_built=”1″ _builder_version=”4.25.2″ _module_preset=”default” custom_margin=”||50px||false|false” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row _builder_version=”4.27.0″ _module_preset=”default” positioning=”absolute” position_origin_a=”bottom_center” vertical_offset=”-45px” custom_margin=”||||false|false” custom_padding=”||||false|false” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.25.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_image src=”https:\/\/ha-gim.com\/wp-content\/uploads\/2024\/11\/TR-200-px.jpg” title_text=”TR 200 px” align=”center” _builder_version=”4.27.2″ _module_preset=”default” width_tablet=”25%” width_phone=”45%” width_last_edited=”on|desktop” border_radii=”on|360px|360px|360px|360px” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.27.2″ _module_preset=”default” header_5_font_size=”20px” text_orientation=”center” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n
Senior Portfolio Manager High Yield [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||” theme_builder_area=”post_content”][et_pb_text content_tablet=”<\/p>\n The question arises: where to put the money? We show you a niche segment in which high single-digit returns can still be achieved on corporate bonds. <\/h2>\n ” content_phone=”<\/p>\n The question arises: where to put the money? We show you a niche segment in which returns in the high single-digit range can still be achieved with corporate bonds. <\/h2>\n ” content_last_edited=”off|desktop” _builder_version=”4.27.2″ header_2_font_size=”25px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n [\/et_pb_text][et_pb_text content_tablet=”<\/p>\n The question arises: where to put the money? We show you a niche segment in which high single-digit returns can still be achieved on corporate bonds. <\/h2>\n ” content_phone=”<\/p>\n The question arises: where to put the money? We show you a niche segment in which returns in the high single-digit range can still be achieved with corporate bonds. <\/h2>\n ” content_last_edited=”off|desktop” _builder_version=”4.27.2″ header_2_font_size=”25px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n The 60\/40 portfolio – a strategic allocation of 60% in equities and 40% in government bonds – is traditionally regarded as a benchmark for diversified institutional portfolios. However, empirical evidence from the last two decades shows that high yield corporate bonds can be a more efficient alternative. <\/span><\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/ha-gim.com\/wp-content\/uploads\/2024\/11\/Europa.png” title_text=”Europe” _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Source: Bloomberg, own calculations, equities = EuroStoxx50 (SX5E Index), German government bonds = Bloomberg Germany Govt All Bonds Total Return Index (BCEG1T Index), Euro High Yield BB-CCC = Bloomberg Euro High Yield ex Financials Total Return Index (I20672EU Index), 60\/40 rebalanced = each month starts with 60% equities & 40% government bonds, 31.03.2003 to 31.10.2024<\/span><\/em><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.0″ _module_preset=”default” header_3_font=”|700|||||||” header_3_font_size=”25px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n However, regional differentiation is important. If you look at the US high-yield market, for example, which has been around for almost 40 years, US high yield bonds were able to keep up with a 60\/40 portfolio for a long time, but were ultimately clearly left behind due to an impressive equity rally over the last 10 years. <\/span><\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/ha-gim.com\/wp-content\/uploads\/2024\/11\/USA.png” title_text=”USA” _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Source: Bloomberg, own calculations, equities = S&P500 (SPX Index), US government bonds = Bloomberg US Treasury Index (LUATTRUU Index), US High Yield BB\/B\/CCC = Bloomberg US Corporate High Yield Total Return Index (LF98TRUU Index), 60\/40 rebalanced = each month starts with 60% equities & 40% government bonds, 31.03.2023 to 31.10.2024.<\/span> <\/em><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.2″ _module_preset=”default” header_3_font=”|700|||||||” header_3_font_size=”25px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n For institutional investors such as life insurers and pension funds, this means that high yield corporate bonds can – with adequate risk management – represent a sensible strategic alternative or supplement to the classic 60\/40 portfolio. Fundamental bottom-up credit analysis, active risk management and an in-depth understanding of technical market factors are crucial for investment success. <\/span><\/p>\n With its dedicated credit research team and many years of expertise in fundamental analysis, HAGIM has the necessary resources to leverage this potential for its institutional clients. We develop customized investment solutions that take the specific ALM requirements into account. <\/span><\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/ha-gim.com\/wp-content\/uploads\/2024\/11\/Tabelle.png” title_text=”Table” _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Source: Bloomberg (Bloomberg High Yield (Euro) ex Fin TR Index Unhedged EUR (I20672EU Index); Bloomberg US Corporate High Yield Total Return Index Value Unhedged USD (LF98TRUU Index); Bloomberg Germany Govt All Bonds Total Return (BCEG1T Index); Bloomberg US Treasury Total Return Unhedged USD (LUATTRUU Index); EURO STOXX 50 EUR (SX5E Index); S&P 500 INDEX (SPX Index))<\/span><\/p>\n [\/et_pb_text][et_pb_divider _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_divider][et_pb_text _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n
<\/span><\/p>\nThe risk premiums on corporate bonds are low and the hoped-for interest rate cuts could fail to materialize! <\/p>\n
The risk premiums on corporate bonds are low and the hoped-for interest rate cuts could fail to materialize! <\/p>\n
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. <\/span><\/h5>\n
The risk premiums on corporate bonds are low and the hoped-for interest rate cuts could fail to materialize! <\/p>\n
The risk premiums on corporate bonds are low and the hoped-for interest rate cuts could fail to materialize! <\/p>\n
<\/span>The attractiveness of high yield corporate bonds is based on their hybrid characteristics. On the one hand, their duration exposure gives them an interest rate sensitivity similar to that of government bonds. On the other hand, they participate in the company’s success through the credit spread – comparable to equities, but with reduced <\/span>volatility.<\/span><\/p>\n
The significant yield pick-up also offers an attractive carry element. The empirical performance analysis for the European market is particularly interesting. As high yield has only been a relevant market here for around 25 years, and in order not to give high yield bonds an unfair advantage, we start the comparison from the low of the equity market in March 2003. Since <\/span>this point in time, high-yield European corporate bonds were only narrowly beaten by a monthly rebalanced equity\/government bonds 60\/40 portfolio. However, corporate bonds were more than 10% less volatile during this period (9.1% for HY vs. 10.2% for 60\/40). <\/span><\/p>\nConclusion<\/h3>\n