Spotlight on fixed income

In each update, we will be diving a little deeper into our combined capabilities. In this feature Olivier De Larouzière, Chief Investment Officer and BNPP AM Global Head of Fixed Income – and European CIO of the Year at the 2023 Funds Europe Awards – showcases fixed income.

Strategies built to navigate across market cycles

Our unified range gathers strategies across all major fixed income asset classes, maturities, geographies and approaches. This extensive breadth of expertise enables us to better serve the needs of a wide range of local and international investors across market cycles, and 2026 has been a good illustration of that.

With expectations of rate cuts being pushed further out, inflows have remained strong for our well-established and growing cash management strategies. Across these, we manage circa €180bn of assets held in several major currencies, including EUR, USD and GBP.

Solutions for Investors seeking lower interest rate sensitivity

Moreover, our complementary broad range of short-duration bond strategies – consisting of investment-grade, high-yield, inflation-linked, and emerging-market debt – has continued to attract investors seeking lower sensitivity to interest rate volatility.

Those short-dated bond strategies and our more flexible approaches have been naturally favoured by clients wanting to cope with an increasingly complex market environment, driven by geopolitical tensions, including the Iran conflict, and renewed inflationary pressures.

Well positioned to deal with turbulence and capture opportunities

Our absolute return and total return strategies have historically demonstrated their respective ability to navigate market turbulence by diversifying their sources of return and dynamically adjusting risk exposures/allocations across fixed income asset classes and investment instruments.

Beyond that, combining our two leading franchises in green and sustainable bonds, allows investors to benefit from continued demand for financing environmentally-friendly and cleaner energy projects that support the net-zero transition, while helping reduce geopolitical dependence on oil and gas supplies.