Bond funds are not always the “first choice” right now. The strong profits of listed companies and the orderly dividend payouts are currently outpacing interest income. If you are looking at performance, you have to look closely. Interview with Wolfgang Zemanek, Head of Bond Funds, Initial Asset Management.
Green bonds are securities that are allocated to specific energy and environmental projects and are intended to contribute to a climate-friendly transformation of the economy. According to a study by the Climate Bonds Initiative (CBI), they reached a record level of $269. 5 billion in 2020. Sustainability-Linked Bonds represent a voluntary commitment for issuers. How exactly they work is explained in our analysis.
ESG bonds are currently on the rise and are becoming an increasingly important part of corporate bonds. According to BofA Securities, 13. 5% of all new issues with ESG criteria were already issued globally in the first half of 2021. This trend is well established in Europe and is also increasing in the USA, as the following analysis shows.
US government bond yields have risen significantly in recent weeks. How does Erste Asset Management’s Head of Fixed Income Wolfgang Zemanek assess the interest rate development and the role of the central banks? Read more in the current blog interview on the bond markets.
In recent days, equities and other risky asset classes have come under pressure despite the fact that in the year to date the optimism about an economic recovery has been on the rise. Is that a case of “buy the rumour, sell the fact”? Had the good news already been priced into the market? Or is there another mechanism that could be driving the future development?
Corporate bonds from emerging markets: environmental focus and calling out companies on their sustainability efforts are turning into a success factor. Senior professional fund manager Péter Varga explains the latest trends and developments.
Central bank targets for inflation may be met earlier than expected in some countries. This environment has led to an increase in government bond yields. We explain how it came about.
As the year 2020 comes to a close, the European Central Bank (ECB) and the European Parliament have put their respective programmes for the fight against the crisis on track for next year. The MEPs recently approved the approximately EUR 1.1tn Community budget for the next seven years, which includes EUR 750bn in Corona aid.
Emerging market corporate bonds are an interesting asset class in the current low-rate environment. Péter Varga, Senior Professional Fund Manager at Erste Asset Management, answers the key questions on the current environment.
High-yield corporate bonds are currently in keen demand again, driven by the energetic steps taken by the central banks in their fight against the coronavirus crisis.