Bond market outlook
Corporate bonds remain underweighted in the short term
After two excellent years for "riskier” bonds (such as corporates and Emerging Market bonds), yield premiums in this area have now narrowed considerably. The scope for a further reduction in these risk premiums (and thus for overall yield declines and corresponding price gains) is therefore becoming increasingly limited. For example, yield premiums on corporate bonds are now close to their all-time lows.
After having overweighted these bond classes for a long time (especially EUR IG corporate bonds), we switched to an underweight position a month ago and are sticking with this positioning for March. This underweight position applies in particular to USD high-yield corporate bonds, whose risk premiums are no longer in line with the general economic environment and the expensive refinancing environment. The picture is similar for hard-currency bonds from Emerging Markets, where we are therefore also underweight in the short term.
In contrast, we are overweight in selected government bonds such as the USA, UK, FR and IT.
Find here more information on current market developments!
As of March 2025
Bond markets in detail
Are high-yield bonds still attractive?
High yield bonds (i.e. bonds from less creditworthy and therefore more risky issuers) have been a sought-after investment instrument for a long time. But, is it currently still worth investing in high-yield bonds?
Are the prospects still rosy for corporate bonds?
Bonds had an unexpectedly difficult year in 2023, but investors were nevertheless treated to decent returns thanks to a strong finish. This year, the bond markets are already experiencing new headwinds. Will they last? And how will corporate bonds fare?
Investing in Emerging Market bonds (now)?
Emerging Market bonds generally offer higher yields than bonds from developed industrialised countries, not least due to their above-average growth and the increasing global economic importance of many Emerging Markets. Nevertheless, the associated risks should not be ignored.
Bond funds
Bond management is one of Raiffeisen Capital Management's longest established core competencies.
Raiffeisen-ESG-Global-Rent: Invest sustainably across the world
Bond investments have enjoyed modest-to-good value growth since the turn of the year, thanks mainly to a significant renewed rise in interest income. But what might happen over the next twelve months, and what are our predictions for the global bond markets?
How a sustainable bond fund seeks opportunities in turbulent times
The bond markets have been characterised by strong fluctuations in yields and prices so far in 2024. Interest rate cuts (especially in the USA) have been priced in and out several times. The bond fund Raiffeisen-Nachhaltigkeit-Rent seeks out and successfully utilises opportunities, especially in such stormy, volatile phases on the bond markets.
Promote the ESG improvement of the EM bond markets
The Emerging Markets present a number of major challenges for investors when it comes to sustainability and ESG-criteria. However, understanding and overcoming these challenges also opens up significant opportunities, both in terms of earnings and promoting a transition to sustainable business practices in the Emerging Markets.
The Fund Regulations of the Raiffeisen ESG Global Bonds have been approved by the FMA. The Raiffeisen ESG Global Bonds may invest more than 35 % of the fund's volume in securities/money market instruments of the following issuers: United States, Japan, Germany, France, United Kingdom.
As of March 2025