The sweet spot in European credit
European corporate bonds are offering a wide range of yields across rating categories, with higher quality bonds sometimes struggling to deliver positive real returns against higher inflation. Issuers of high yield bonds have become a welcome ally in this fight, but remain exposed to economic pressures.
The challenge for investors in 2024 is to find the sweet spot that combines the best of both worlds.
Finding the sweet spot in European Credit
Risk & return profile of the crossover space
(gross of fees, past 10 years since Nov. 2013)
![European Cross Credit Fund 1](https://www.nordea.lu/uploads/2024/01/439578dd9433f1824ddb3cc580f5071d/chart_eccf_microsite_eng-scaled.jpg)
With the Nordea 1 – European Cross Credit Fund, we aim to capture the most promising opportunities within the cross-over space from both Investment Grade (IG) and High Yield (HY) bonds.1
The targeted result: High Yield-type returns with Investment Grade-type volatility and risk1.
Why the Nordea 1 – European Cross Credit Fund?
![European Cross Credit Fund 2](https://www.nordea.lu/uploads/2024/01/9910516009bc239b11bd1c71dac18217/eccf_table_eng.png)
Looking for higher returns while keeping risk in check?
In need of other credit solutions to fit your portfolio?
- Actively managed Investment Grade portfolio managed by Nordea Credit Team in collaboration with our in-house Responsible Investments Team
- Well-proven and established Credit team applying a fundamental bottom-up approach with full ESG integration (including corporate engagement)3
- Focus on company specific research to identify long term changes critical to credit quality
- Play the crossover universe of High Yield and Investment Grade bonds to take advantage of structural inefficiencies created by rating agencies
- Bottom-up driven approach determined to find only bonds of companies with solid fundamentals
- Aim to yield more than an Investment Grade portfolio with a lower risk than a “pure” High Yield one
- Actively managed credit portfolio that aims for responsible performance in the European high yield market
- Bottom-up credit selection to seek relative value across the full risk spectrum with no top-down bets
- Robust integration of ESG analysis in the investment process with the goal to select the right companies, both from a return and a sustainability perspective3