Financial news these days is almost all about the stock markets. Are they going to crash? Have stock markets decoupled from the economy? Has that ship sailed and is it too late to get on board now? The ongoing development of the stock markets seems to be THE hot topic.

But stocks are not the only type of investment. There are also other asset classes. Such as bonds. After the unprecedented rise in interest rates in recent months, this market is likely to offer historical opportunities. But hardly anyone is talking or writing about this. Many still have in mind the zero or negative interest rate scenario that we’ve been facing and dealing with for so long. However, those times are long gone and there are lucrative investment opportunities available. We are happy to demonstrate this by way of example with our Credit Opportunities Bond Portfolio, which targets credit opportunities primarily in the high-yield segment. It includes securities such as the bond recently issued by AMAG Leasing with a 6-year maturity in CHF and a 3.0125% coupon.

On the graph, you can see the key figures of the portfolio, which you can also read in detail on the factsheet. It’s enough to make you rub your eyes in disbelief: 8.5% yield to worst, and that’s in Swiss francs! Even with a historically average 2% default rate, this still comes to 6.5% p.a. And that’s with diversification through 175 bonds from 18 different industries and an average remaining maturity of (only!) around 2 years.

With such opportunities, it’s surprising that people are hardly thinking about anything other than the stock markets. The risk/reward ratio in the bond sector is very attractive at the moment; and investors have hardly missed out yet, since the recovery is only just beginning.

The same thing is happening in the investment-grade segment, as well as with sustainable bonds.

Please do not hesitate to get in touch if you require any further information or details.