An approach aiming to absorb shocks, not amplify them
Credit can feel calm because returns are steady most of the time. But credit is asymmetric: the upside is limited to the coupon, while the downside can be permanent if fundamentals weaken or liquidity disappears.
That is why our approach starts with risk management: we focus on making risk visible, measurable and discussable long before it has the chance to surprise a portfolio.
Why focus on risk?
A focus on risk is what turns credit from a source of uncertainty into a source of disciplined income. By analysing downside drivers, liquidity and structure in advance, investors can distinguish between risks that are compensated and those that are not.
The upside is capped
Credit rewards discipline. When spreads widen or liquidity disappears at the wrong moment, bondholders learn quickly that “safe” can be situational.
Liquidity can vanish
Bond markets can be liquid in quiet conditions and unforgiving in stress. Managing liquidity early is part of managing risk.
Structure is part of risk
Covenants, seniority and recovery prospects often drive outcomes more than headline yield. In credit, the fine print matters.
Global High Yield: Outlook
An in-depth outlook on global high yield markets in 2026, examining how carry, dispersion and issuer selectivity shape opportunities and risks as the credit cycle matures. Find out:
With spreads tight and refinancing risk moving closer into view, the margin for error is narrowing.
Understanding where resilience lies will be key to navigating 2026.
Read our 2026 global high yield outlook
The Candriam approach
Understanding what “taming risk” means and how Candriam puts it into practice.
Charudatta Shende, Head of Client Portfolio Management Fixed Income and Fixed Income Strategist, and Marie Thomin, Client Portfolio Manager
Why Candriam
Built on expertise. Driven by Risk Awareness.
Experience
Experience that compounds over time. Long-standing teams, deep market knowledge and a shared culture of risk awareness across market cycles.
Track Record
Shaped by risk discipline. Downside awareness over headline yield — reflected in an absence of issuer defaults and a disciplined, bottom-up process.
Innovation
Across a broad spectrum. Investment grade, high yield and specialist segments — long-only and long–short — all guided by the taming risk approach.
Recognised Expertise
Credibility reinforced. External recognition through industry awards and independent ratings, confirming process robustness and depth of expertise.
By the numbers
0
Issuer Defaults
across the credit strategies we manage - reflecting long-standing downside discipline
€60.70bn
Assets Under Management
As of 31/12/25
Candriam's fixed income platform
20
Credit Experts
Portfolio managers, analysts and specialists across eight credit strategies
25
Years in Credit
Experience built across multiple market cycles and stress environments
Explore Our Fixed Income Universe
Drawing on more than 30 years in bond markets, Candriam's fixed income platform integrates macro perspective, credit selectivity and active risk management across market cycles.
Some Flagship Strategies
Designed to address different portfolio roles and market environments, anchored in a consistent, risk-first investment philosophy — emphasising disciplined construction, liquidity awareness and downside control.
Bonds Global High Yield
European & US corporate bonds, IG and HY (BB+ to B-), outside Financials
Sustainable Bond Euro Corporate
Euro Investment Grade credit with an ESG focus
Bonds Floating Rate Notes
Euro IG credit, 0-3yr segment: low duration, limited volatility
Bonds Capital Securities
Subordinated debt issued by high-quality financial institutions
Bonds Credit Alpha
Long-short directional credit strategy with volatility below 10%
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Credit: Taming a Wide Universe
Credit markets have evolved. What was once considered a single asset class has become a broad, fragmented and multi-layered ecosystem spanning bonds, derivatives, private markets, currencies and capital structures—from senior secured debt to subordinated and hybrid instruments. -
Sustainable returns: in credit?
Why has the enthusiasm for sustainable investing lost its lustre? A lag in performance of sustainable European equities relative to the broader European equity markets over the last three years hasn’t helped. Sector rotation in equities is often blamed for this downturn in returns. . -
Investing in Late-Cycle Credit
Late-cycle credit markets rarely announce themselves clearly. Spreads remain tight, income is still available, and risky assets may continue to perform. Yet beneath this apparent stability, the balance is shifting: compensation is thinner, risks are more idiosyncratic, and the margin for error is narrowing. -
Unlocking extra income in subordinated financial bonds
Since the end of February, global credit markets have been driven by the escalation of the US-Iran conflict and rising tensions across the Middle East. While geopolitical risks are not new, the intensity and speed of this episode took markets by surprise. -
Sustainable Investment Grade: Resilience with purpose
Since late February, global markets have been shaped by renewed geopolitical tensions in the Middle East, triggering a sharp increase in oil prices and reigniting inflation concerns. -
Navigating the Credit Cycle
If you ask a fixed income investor to describe the credit cycle, most will readily cite its four familiar phases: Repair, Recovery, Expansion and Downturn. Knowing the terminology is straightforward. The more relevant question is: why does it matter for portfolio outcomes? -
Embracing risk in credit: the Candriam approach
Explore Candriam’s disciplined approach to credit investing. Learn how issuer research, ESG integration and risk visibility help navigate volatility and construct resilient fixed income portfolios. -
Unlocking extra income in subordinated financial bonds
In a world where investors are constantly looking for more income opportunities and stability, subordinated bonds issued by banks and insurance companies constitute an interesting alternative.