1. A market leading investment opportunity
The global high yield asset class offers a compelling blend of income and cushion, making it an attractive allocation for investors navigating a complex landscape. Global high yield now provides a yield over 6.5%[1]—a notably attractive level when viewed in the context of the asset class’s underlying credit quality. With the majority of issuers rated in the BB to B range, investors are compensated with robust coupons without venturing into excessively speculative territory. This elevated yield not only enhances income potential but also offers a meaningful cushion against adverse market conditions, serving as a first line of defence in periods of volatility or economic uncertainty.
Another distinguishing feature of the global high yield market is its favourable duration profile. With a duration near 3 years[2], the asset class exhibits limited sensitivity to fluctuations in interest rates. This lower duration helps mitigate the impact of rate volatility and contributes to a more stable risk-return profile—an important consideration in an environment where monetary policy remains a dominant market driver.
In addition, this market boasts a remarkable degree of diversification. Encompassing over 1,200[3] issuers across a wide range of sectors, geographies, and credit ratings, the global high yield universe offers exposure to a broad spectrum of economic activity. Moreover, varying maturities, multiple currencies, and diverse capital structures create a rich platform for portfolio construction.
The global high yield market provides investors with numerous levers designed with the aim to enhance returns while managing risk. This rich mosaic of performance drivers creates fertile ground for active managers to extract alpha through security selection and tactical allocation.
2. A fund backed by expertise and agility
Candriam Bonds Global High Yield[4] deploys a high-conviction, highly active strategy which places an emphasis on thorough fundamental analysis that we refine with a top-down framework that seeks to allow us to unearth the best opportunities within High Yield markets.
These opportunities take the form of trades across issuers as well as instruments. The fund places a strong emphasis on bottom-up issuer selection within each segment of the market to deliver alpha. Each issuer is assigned an internal credit rating based on rigorous bottom-up research carried out by the analyst. This rating is not only based on the issuers business profile and financial profile, but also integrates Environmental, Social & Governance criteria in order to gain an accurate and complete picture of the company’s creditworthiness.
An important focus is also put on relative value strategies that aim to extract performance through regional trades (Euro HY vs US HY), currency trades (EUR. Vs USD), Basis trades (CDS vs Cash), Maturity trades (short-end vs long-end) and others (such as capital structure). This broad range of instruments provides the investment team with a substantial opportunity set that they can exploit in order to seek to generate excess returns vs. the market. It is also important to note that the relative value trades are implemented based on fundamental research that encompasses issuer as well as top-down analysis.
Finally, thanks a rigorous risk management framework and a strong focus on liquidity, the investment team has avoided any defaults since the fund’s inception, underscoring the robustness of its credit selection process and the ability for the fund to weather all market conditions.
3.Tailored for the new paradigm
In an environment increasingly shaped by secular megatrends, markets are undergoing a profound transformation. These structural forces are placing upward pressure on inflation expectations, thereby contributing to a sustained regime of higher interest rates. In turn, this is fostering a market backdrop defined by elevated volatility and pronounced dispersion, particularly within high yield credit markets. Traditional top-down strategies are ill-equipped to cope with such complexity; what is required is an approach that is both analytically rigorous and operationally agile.
Candriam Bonds Global High Yield is expressly designed for this new paradigm. Anchored in a philosophy of meticulous bottom-up research, the fund seeks to capitalise on idiosyncratic opportunities through deep fundamental analysis. Simultaneously, its dynamic, actively managed framework allows it to adapt with precision to rapidly evolving market conditions. By emphasizing issuer-specific credit quality, our strategy is well-suited to extract value from dispersion while mitigating downside risk. The fund’s nimbleness ensures timely repositioning across sectors and geographies, and its flexibility enhances its ability to navigate periods of heightened uncertainty. As markets continue to transition into an era defined by complexity and fragmentation, Candriam Bonds Global High Yield stands as a targeted solution, purpose-built with the aim to deliver resilient performance in the face of structural volatility and elevated rates.
4.Supported by a well experienced & stable team
With a heritage in high yield investing dating back to 1999, our investment team brings over two decades of deep market knowledge and disciplined execution to every portfolio decision. This longevity underpins the team's consistent ability to navigate complex credit environments with conviction and precision.
Comprised of four seasoned portfolio managers and six dedicated analysts, with an average of 12 years of industry experience, the team strikes an optimal balance: large enough to ensure deep coverage and idea generation, yet compact enough to foster close collaboration and daily exchange of insights. The structure allows for high agility in decision-making, while maintaining a diversity of perspectives.
Team stability is a cornerstone of the group’s success; with only one departure since 2019, continuity and alignment remain strong. Moreover, the team is fully integrated into a wider investment platform, drawing on the insights of in-house economists, fixed income specialists, investment-grade credit analysts, and ESG professionals. This breadth of resources significantly enhances research depth and portfolio construction.
With over €9.4 billion in high yield assets under management[5], the team has achieved strong growth based on performance and client trust. Their strategies span the full spectrum of high yield—Euro, Global, Sustainable, Flexible, and Absolute Return—each exceeding €500 million[6] in assets, providing critical mass and portfolio efficiency.
The combination of a long-standing philosophy, stable and experienced talent, and a comprehensive support structure positions the team to continue delivering robust outcomes for clients in a constantly evolving credit landscape.
[1] Source: Bloomberg, 6.7% ICE BofA Global High Yield Index , as of 29/07/2025
[2] Source: Bloomberg - effective duration of ICE BofA Global High Yield Index as of 29/07/2025
[3] Source: Bloomberg, - 1,281 issuers - ICE BofA BB-B Global High Yield Non-Financial Constrained Index , as of 29/07/2025
[4] The fund is actively managed and the investment process implies referring to a benchmark index, the ICE BofA BB-B Global High Yield Non-Financial Constrained Index EUR Hedged (Total Return).
[5] Source: Candriam, as of 31/07/2025
[6] Source: Candriam, as of 31/07/2025