In this April 2026 quarterly update, Vicky Browne, Investment Specialist – Global Aggregate & Absolute‑Return at BNP Paribas Asset Management, provides a concise analysis of how the fixed‑income market has evolved since the start of 2026. She walks through the macro‑economic and geopolitical developments that have impacted performance, and explains what those changes mean for an absolute‑return bond strategy. Vicky highlights the portfolio positioning and tactical adjustments made to preserve diversification, manage risk, and capture upside in today’s volatile environment.
Watch the full video below.
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Important information
Marketing Communication. For Wholesale Investors Only.
This information is distributed to wholesale clients only in Australia by BNP PARIBAS ASSET MANAGEMENT Australia Limited ABN 78 008 576 449, AFSL 223418. None of the funds referred to in this material are available in Australia & New Zealand, and so this material is provided to wholesale clients for information purposes only.
Past performance or achievement is not indicative of current or future performance. Performance is calculated net of fees unless otherwise stated. Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice. Investments are subject to market fluctuations and the risks inherent in investments in securities. 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 investment. There is no guarantee that the performance objective will be achieved.
Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, (the Sub-Fund’s) performance may at times be better or worse than the performance of relatable funds that do not apply such standards.
The sub-fund may be exposed to other risks defined below.
Capital loss risk: The investments are subject to market fluctuations and the risks inherent in investments in securities. 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.
Interest rate risk: The value of an investment may be affected by interest rate fluctuations. Interest rates may be influenced by several elements or events, such as monetary policy, the discount rate, inflation, etc.
Credit risk: This is the risk that may derive from the rating downgrade of a bond issuer to which the sub-funds are exposed, which may therefore cause the value of the investments to go down. Sub-funds investing in high-yield bonds present a higher-than-average risk due to the greater fluctuation of their currency or the quality of the issuer.
Liquidity risk: There is a risk that investments made in sub-funds may become illiquid due to an over-restricted market (often reflected by a very broad bid-ask spread or by substantial price movements), or if their rating declines or their economic situation deteriorates.
Derivatives risks: Risks include the lack of secondary market liquidity, valuation risks, the lack of standardisation and regulation, the risk of leverage, the risk of the counterparty.
Counterparty risk: This risk relates to the quality of the counterparty with whom the funds do business or enter into various transactions. This risk reflects the counterparty s ability to honour its commitments (payment, delivery, repayment, etc).
Operational and Custody Risk: Some markets are less regulated than most of the international markets; hence, the services related to custody and liquidation for the subfund on such markets could be more risky
For a complete description and definition of risks, please consult a client relationship manager or the global BNP Paribas Asset Management website:
staging.bnpparibas-am.co.uk.
