Market insights

Record losses in bond markets in the first half of the year were extremely painful for investors. Global corporates now offer attractive yields against the backdrop of an expected soft landing of the economy and promising fundamental and technical factors.

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Convertible bonds are well suited to the kind of extremely uncertain market and economic environment that we are currently experiencing. Their "automatic timing" assists investors with their asset allocation.

A sharp economic slowdown or even a recession should bring IG corporates into focus, which offer relatively good protection compared to lower-rated bonds and equities.

Following the market weakness of recent months, many high-yield bonds are trading below their nominal value again. This opens up opportunities for investors to achieve significant price appreciation, for example in the context of M&A transactions.

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The so-called frontier markets, including Uzbekistan, Paraguay and Vietnam, offer investors significantly higher return potential compared to traditional emerging markets.