FIXED INCOME
R-co Conviction Credit Euro: bond yields back to attractive levels
Key points
Breakdown & average yield by ratings (excluding liquidity & cash)
Minimum 80 % Investment Grade bonds (AAA / AA / A / BBB)
Chart Title
55,4%
22,2%
6,8%
6,0%
4,4%
Since June 2023:
2,2% 0,2%
1,0%
AAA
AA
A
BBB
BB
B
CCC
NR
> A ratings: +7,6 % BBB ratings: -9,1 % HY ratings: +0,3% NR ratings: -0,3 %
6.0%
20.0%
4.4% 8.3%
2.3% 2.9% 3.4% 4.0%
Average yield:
Gross yield and modified duration portfolio evolution
YTM
0% 1% 2% 3% 4% 5% 6% 7% 8% 12-17 06-18 12-18 06-19 12-19 06-20 12-20 06-21 12-21 06-22 12-22 06-23 12-23 06-24 12-24
5
CDS net exposure (Main) :-24%
4
3
3.8 % Yield to worst 1
2
1
0
Modified duration (rhs)
Gross yield
Public 1 - Yield to Worst, or YTW, is the worst return a bond can earn without the issuer defaulting. The YTW allows the investor to know the highest maximum risk of a bond. The YTW is then used to calculate whether it is worthwhile to take a position in a particular bond. Source: Rothschild & Co Asset Management – 31/12/2024 Allocations and distributions, both geographical and sectoral, are not fixed and may change over time, within the limits of the fund's prospectus .
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