📸 We were delighted to meet with Spanish investors in Barcelona last week for our year-end corporate credit market update. Many thanks to everyone who attended and contributed to such insightful discussions!
💡 Key takeaways from the presentation, “The Benefits of Short Duration Corporate Bonds in the Current Environment” by Jean-Julien Goettmann, Founding Partner and Sales Director, and Thibault Destrés, Head of Portfolio Management at Anaxis Asset Management:
➡️ The macroeconomic backdrop
🔹 Inflation is picking up again, driven by energy prices: euro area inflation reached 3.8% in September, its highest level in three years, with energy prices up 18.9% year-on-year. The risk of stagflation remains the main concern, although second-round effects have so far been limited.
🔹 Central banks are once again in tightening mode: since February, rate expectations have been repriced by c.120bp (ECB) to c.170bp (Fed). The short end now offers a carry that short-dated credit captures with limited duration risk.
🔹 European High Yield spreads have returned to their 10-year average (363 bps), following a widening of around 115 bps since the July lows, concentrated among B-rated issuers. Yields are now well above their 10-year averages, at 7.1% for European High Yield (the highest level since December 2023) and 4.3% for Investment Grade.
🔹Credit fundamentals remain solid: margins are holding up, companies retain strong pricing power and near-term refinancing needs are limited. Expected default rates remain contained, at around 2.5–3%.
➡️ Our investment solutions in this environment
🔹We favour short-duration corporate credit, an overweight to BB-rated issuers, no CCC exposure, a defensive sector bias (healthcare, services and capital goods) and a preference for European High Yield.
🔹Anaxis Short Duration: 5.11% yield for 1.88 years of duration, a BB average rating and 119 issuers in the portfolio. The fund offers a strong cushion against rising interest rates and spread widening: one year of carry can absorb a rise in rates or a spread widening of around 270 bps, compared with 40–65 bps for a 10-year government bond (EUR share class – FR0010951483, as of 30/10/2026).
🔹Diversified Bond Opp. 2029: 6.24% yield for 3.22 years of duration, a BB average rating and 146 issuers in the portfolio. The yield is at its highest level since the portfolio was established in July 2025, while duration continues to shorten progressively (EUR share class – FR0013330750, as of 30/10/2026).
