Highlights
Corporate bonds: A robust asset class in times of a bond renaissance
The end of the low interest rate phase has triggered a renaissance for fixed-income investing. Investment-grade corporate bonds are a key component of many portfolios.

In the new capital market regime with more inflation and growth, higher (real) interest rates, and more volatility, a diversified investment in investment-grade corporate bonds with good security selection offers an interesting risk-reward profile. To exploit the opportunities and counter the risks, we at Union Investment pursue an active, fundamental management approach.

Three questions on corporate bonds with Michael Schiller
In video interview: Michael Schiller - Group Head of Fixed Income Credit at Union Investment and focused on EUR corporate bonds.
Good reasons for corporate bonds with Union Investment
Bundled expertise
We have a large and successful credit investment team at one location in Frankfurt am Main. Our many years of experience and international expertise make us a reliable partner with excellent market access.
In-house developed research application
Our proprietary Global Credit Platform (GCP) covers over 66,000 bonds worldwide. In addition, around 1,950 issuers are covered directly by our in-house research via the GCP.1
Stable team with long experience
In terms of size and investment experience - 17 years on average - our Credit team is broad-based and stable, with an average tenure of over ten years.1
- As of July 2024
Investment objectives and approach
Fundamental, active and risk-controlled investment approach
We pursue an active, fundamental management approach. Our aim is to collect attractive, risk-adjusted returns through bottom-up driven individual stock selection, complemented by targeted top-down decisions. Our focus is on the timely identification of rating changes and defaults.
An integrated, data-driven investment process
Our portfolio managers are responsible for both research and portfolio construction as part of an integrated investment process. They are technically supported by the Global Credit platform, in which we aggregate and analyze data from over 25 external and internal research data sources across issuers, securities and markets. Approximately 9 million data points are updated daily. The Global Credit platform also serves as a central research and communication channel within the Credit team and the entire Fixed Income division.
Integration of ESG criteria
In our investment approach, we also attach great importance to the analysis of ESG factors as part of our fundamental research. Since 2013, our Sustainable Investment Research Information System (SIRIS) has combined extensive data from external research firms and our own analysts. The intelligent platform enables our portfolio managers to assess opportunities and risks for individual stocks and portfolios.

Key opportunities and risks of corporate bonds
Opportunities
- Attractive yields on international corporate bond markets
- Higher yield than investing in top-rated bonds
- Diversification
Risks
- Market-related price and yield fluctuations as well as credit risks of individual issuers/ counterparties
- Increased price fluctuations and defaults on higher-yielding securities
- Illiquidity of assets
Are you interested in corporate bonds? How can we help you?
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