Corporate Bonds

Vontobel’s investment specialists focus on building solid portfolios

With our European and Global Mid Yield strategies, we concentrate on issuers with credit ratings in the lower investment-grade category (ratings between A and BBB) and selected BB investments. We know investors expect decent returns combined with a minimum credit risk. We hit that mark at the portfolio level by spreading these risks over a longer period of time, using bonds with different maturities. It allows us to reduce the risk in a flexible way, enabling success even during phases of weak markets.

In the high-yield segment, the issuers have correspondingly lower ratings, expressing an increased risk (ratings between BB and CCC). In our experience this is made up for by higher coupon payments, but at the same time, we attach particular importance to keeping the risk of defaults low. Our nimble structure allows us to adjust the portfolio during difficult market phases and minimize fluctuations in value.