Innovative investment approaches in the bond sector

Within Insights we provide you with a deeper understanding of our investment philosophy and thinking.

Tailor-made solutions for individual problems

After more than a decade of low and negative yields, bonds are trading at more reasonable and positive levels following the sharp rise in 2022. In many investment-grade segments, especially non-financial and financial bonds, euro bonds are again offering yields of 3% and more.

This opens up the possibility for investors to act more strategically again, away from traditional benchmark-oriented investment approaches, which tend to be more trading intensive, and to rely more on individual bond strategies. This is because the focus is no longer on avoiding negative interest rates and penalty charges, but rather on ordinary income, individual problems and tailor-made solutions.

In this Insights publication we present three individual approaches:

  1. target maturity portfolios;
  2. ladder structure portfolios; and
  3. payout-oriented bond portfolios.

We discuss possible applications as well as advantages and disadvantages.

Read the full publication here


Felix Stern
Head of Fixed Income Euro Balanced