Navigating volatility: Absolute Return Bond Strategy Outlook for 2026

Following strong performance in 2025, BNP Asset Management’s global absolute return bond strategy enters 2026 with a supportive market backdrop. Recent market volatility has reinforced investor demand for flexible fixed income strategies focused on capital preservation and consistent returns. Active positioning across duration, relative value and currency market was a key contributor to performance in 2025.

Looking ahead, the strategy is positioned to benefit from expected interest rate cuts in markets such as the UK, Brazil and the Unites States, A flexible, global and unconstrained investment approach remains essential in navigating uncertainty and identifying opportunities across bond markets.

For more insights on our strategy and market outlook, watch our video.

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Important information

Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns. Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.

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