Market insights

What has long been proven in equities is now also the case when it comes to convertible bonds: investing in sustainable companies is beneficial for performance in the long term owing to the increased focus on risk. Hence, sustainable convertible bonds have kept pace well with the wider market over the past ten years – despite a scaled-down investment universe.

Corporate bonds have enjoyed a good start to 2019. Following the substantial derating of the asset class last year, the market has rebounded as many had hoped. “Global credit markets gained crucial support from the US. The pause in interest rate hikes announced by the Fed steadied the market’s nerves. The combination of a shift away from tight US monetary policy and the persistent environment of low interest rates globally makes corporate bonds particularly attractive in the asset allocation matrix at the moment”, comments Oliver Reinhard, Senior Portfolio Manager at Fisch Asset Management in Zurich.