Euro credit total return
A flexible euro credit strategy that navigates diverse market conditions with high-conviction investments via an active, dynamic asset allocation.
The opportunity
Our Euro Credit Total Return strategy is flexible and actively managed designed to navigate varying market conditions. With no benchmark constraints, the strategy invests across the full spectrum of euro-denominated fixed income instruments, including Investment Grade and High Yield bonds.
It leverages a rigorous top-down and bottom-up investment process, integrating macroeconomic views with issuer-level analysis, including ESG factors.
The strategy is built on high conviction ideas, dynamic asset allocation, and effective risk management using tools like duration hedging and credit default swaps (CDS).
Strategy highlights
Capture opportunities throughout the euro credit universe
Capturing opportunities across the euro credit universe through a rigorous investment process combining macroeconomic insights and issuer-level research. It dynamically allocates across market segments and risk profiles, ensuring flexibility and responsiveness to changing market conditions.
Target high-conviction ideas
High-conviction ideas are central to the strategy, supported by a seasoned team of portfolio managers and credit analysts. The strategy expresses strong views across sectors, backed by rigorous research, with tactical use of derivatives to manage downside risk.
Seek consistent returns through flexibility
It seeks risk-adjusted returns through dynamic duration management and diversified fixed income exposure.
Team and expertise
Our euro credit total return strategy sits within the Euro Credit investment team and is managed by Boutaina Deixonne, Head of Euro Investment Grade and High Yield Credit.1
Boutaina and the team regularly collaborate to share best ideas and opportunities, with ESG considerations embedded in every stage of the investment process. They also have access to a broad range of resources in research and execution.
Investment risks
Investments are subject to market fluctuations and other risks inherent to investing in securities. The value of investments and the income they generate may rise or fall and it is possible that investors may not recover their initial investment.
The strategy may be exposed to specific risks, including Credit Risk, Derivatives and leverage, Defaulted securities, Extension, Perpetual securities Emerging markets, Global investments, High yield debt securities, ESG, Distressed Securities, Subordinated Debts, Reinvestment.
For a complete description and definition of the strategy’s generic and specific risks, please refer to the Prospectus and KID.
[1] BNP Paribas Asset Management as of 30 September 2025
Important information
This material is issued and has been prepared by BNP PARIBAS ASSET MANAGEMENT Asia Limited with its registered office at Suite 1701, 17/F, Lincoln House, Taikoo Place, Quarry Bay, Hong Kong. This material has not been reviewed by the Hong Kong Securities and Futures Commission. It is produced for information purposes only and does not constitute:
- an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or
- investment advice.
Investors considering subscribing for the financial instruments should read the most recent prospectus, offering document or other information for further details including the risk factors available from your local BNPP AM correspondents, if any, or from the entities marketing the Financial Instrument(s). Investors should consult their own professional advisors in respect of investment, legal, accounting, domicile and tax advice prior to investing in the funds in order to make an independent determination of the suitability of the consequences of an investment. Investments involve risks. 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. Past performance is not a guide to future performance.
Some of the services listed on this Website may not be available for offer to retail investors.
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.
Fixed income sub-funds may be exposed to other risks defined below:
CAPITAL LOSS RISK: The value of the investments in Financial Instrument(s) and the returns generated by the described funds may go down as well as up. Investors may not get back the amount they originally invested.
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.
COUNTERPARTY RISK: This risk relates to the quality or the default of the counterparty with which the Management Company negotiates, in particular involving payment for/delivery of financial instruments and the signing of agreements involving forward financial instruments. This risk is associated with the ability of the counterparty to fulfil its commitments (for example: payment, delivery and reimbursement). This risk also relates to efficient portfolio management techniques and instruments. If counterparty does not live up to its contractual obligations, it may affect investor returns.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) INVESTMENT RISK: The lack of common or harmonized 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.
This is not an exhaustive list of risks. For a full description of risks associated with each fund, please consult a client relationship manager or the global BNP Paribas Asset Management website: staging.bnpparibas-am.co.uk.