THEAM’s bond strategies

Bond markets experience combined with quantitative expertise

THEAM’s Global Quant Fixed Income Team, which has, on average, over 13 years of experience of the bond markets, has an in-depth knowledge of the bond markets as well as specific expertise in quantitative techniques. The team also works with BNP Paribas Investment Partners’ Financial Engineering Teams to design investment strategies that meet its clients’ changing requirements as closely as possible. This joint approach has borne fruit in particular in the development of the Low Risk bond investment strategy, a smart beta strategy for corporate bonds, which aims to capture the so-called “low risk” anomaly highlighted by the BNP Paribas IP Financial Engineering Team’s research.

THEAM’s smart beta investment solutions on the bond markets

THEAM’s investment solutions in the fixed-income universe have the dual objective of generating stable returns throughout the economic cycle while protecting to the greatest possible extent the capital invested by both private and professional investors. To achieve this dual goal, the approach implemented by the Quant Fixed-Income Team focuses strongly on flexibility and the management of risk. The investment universe includes a variety of global fixed-income asset classes (sovereign debt and investment-grade and high-yield corporate bonds) and currencies.

The solutions offered by the Quant Fixed-Income Team have the following characteristics:

  • A core portfolio invested in carry assets, which are selected in accordance with the fund’s target long-term risk-return ratio
  • Active management of the portfolio’s sensitivity to interest rates and credit, which is managed in accordance with the analysis of the economic cycle and quantitative signals so as to maximise the flexibility of the overall portfolio
  • Complementary exposure to non-directional strategies (arbitrage strategies) for diversification purposes
  • A disciplined investment process, which relies on a tightly managed approach to risk.

To match investors’ requirements as closely as possible, THEAM’s fixed-income offering comprises a range of products with different risk profiles.

The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the fund described being in risk of capital loss

On the same subject:

Investments in the aforementioned fund are subject to market fluctuation and risks inherent in investing in securities. The value of investments and the revenue they generate can increase or decrease and it is possible that investors will not recover their initial investment. Source: BNP Paribas Investment Partners.