Raiffeisen-Europa-HighYield (R)

Fund Management Report

During the month, sentiment gained traction on the credit markets, thanks to positive developments in the trade conflict and the Brexit negotiations. While EUR government bonds from the core countries suffered losses, corporate bonds were partially able to avoid the increases in yields, and risk premiums declined accordingly. The fund performed well under these conditions. The conservative stance is emphasised. The level of investment is slightly lower. By historical standards, the market yield of around 3% seems relatively low, but this is due to the negative interest rate environment. Right now, the asset class is supported by excess investor demand. With an average credit risk premium of around 370 basis points, default risks appear to be adequately discounted. (24.10.2019)