Corporate bonds: riding the interest-rate tailwind

The turnaround in interest-rate policy in 2022 has triggered a renaissance for fixed-income investing. Euro-denominated investment-grade corporate bonds are a key component of many portfolios. 

Corporate Bonds nach Zinswende wieder erstarkt


Under this new capital market regime of higher inflation and growth, elevated (real) interest rates and greater volatility, investing in a diversified range of carefully selected investment-grade corporate bonds can offer an interesting opportunity/risk profile. At Union Investment, we use an active, fundamental management approach in order to seize opportunities and address risks. 

Stephan Ertz

Since the monetary policy environment changed in 2022, corporate bonds have become more attractive again. In Union Investment’s Credit team, the focus is on bottom-up security selection.

Stephan Ertz

Head of Fixed Income Credit

Michael Schiller answers three questions on corporate bonds

Video interview with Michael Schiller, Group Head of Fixed Income Credit at Union Investment and focused on EUR corporate bonds

Why investing in euro corporate bonds with Union Investment is a good idea 

Pooled expertise  

At our Frankfurt office, we have a large euro credit investment team compared with competitors around the world. Thanks to our long-standing experience and international expertise, we are a reliable partner with excellent market access.

  1. 1 As at march 2023.

Proprietary research application 

Our global credit platform (GCP), which we developed inhouse, comprises more than 65,000 bonds globally. In addition, around 1,950 issuers are covered directly by our proprietary research through the GCP. 1 

A stable, experienced team 

In terms of size and experience, our euro credit team is broad-based and stable. Its members have an average of 17 years’ investment experience and have, on average, been with our company for more than ten years. 

Investment objectives and approach 

Fundamental, active and risk-controlled investment approach 

We pursue an active, fundamental management approach. Our aim is to use a combination of bottom-up security selection and occasional targeted top-down decisions to earn attractive, risk-adjusted returns. Our focus is on spotting signs of rating downgrades and defaults in a timely manner.  

An integrated, data-driven investment process  

Under our integrated investment process, our portfolio managers are responsible for both research and portfolio construction. They can draw on technical support from our global credit platform, which aggregates more than 40 million data records from 20 external and internal research data sources across issuers, securities and markets on a daily basis. At the same time, the global credit platform serves as a central research and communications channel within the Credit team and as part of the wider fixed-income platform. 

Integration of ESG criteria 

Under our investment approach, we attach great importance to analysing ESG factors as part of our fundamental research. Since 2013, our sustainable investment research information system (SIRIS) has been pooling comprehensive data from external research providers and inhouse analysts. The intelligent platform enables our portfolio managers to assess the opportunities and risks of individual securities and entire portfolios. 

Portfolio managers from the Fixed Income Credit team at work

Key opportunities and risks of euro corporate bonds 


  • Attractive yields in the international corporate bond markets
  • Higher return than on investments in safe-haven bonds 
  • Diversification 


  • Market-driven price volatility and income fluctuations as well as credit risk of individual issuers/counterparties 
  • Investments in high-yield securities may entail heightened price volatility and default risk
  • Illiquidity of assets 

Are you interested in corporate bonds? How can we help you?

Your contact person

Your contact person

If you have any questions or would like to obtain further information, please find your dedicated contact below.

Feel free to contact us

Find out more about other strategies

Strucutred Credit 

Structured credit: opportunities through complexity

For decades, structured credits have been an efficient component in the portfolio construction of professional investors.  Alexander Ohl, Head of Credit Solutions at Union Investment, provides reasons that speak for this asset class. 

Equity Global Value

Equity Value: profiting from the new market environment

We are currently experiencing a regime change in the capital markets. Inflation has returned and interest rates have risen. Stefan Brugger, Senior Portfolio Manager Equities, explains why value stocks can benefit from the new capital market regime.