Euro high yield bond
Target equity-like returns with less volatility
The opportunity
High-yield bonds carry lower credit ratings than investment-grade or sovereign bonds but offer higher yields to compensate for the additional risk. They tend to, therefore, deliver equity-like returns over the longer term – and typically with less volatility than the equity market due to their income component, which can act as a ballast during market downturns.
Hence, these characteristics, coupled with relatively low-interest rate sensitivity thanks to generally shorter maturities and less correlation with other types of bonds as well as commodities, may make high-yield bonds in our view an interesting option for a well-diversified investment portfolio.
Source: BNP Paribas Asset Management, as of March 2026.
Strategy highlights
Portfolio diversification
Like equities, high-yield bonds can offer attractive long-term return potential but are typically less volatile. They can help to diversify portfolios as they tend to exhibit low correlations to other fixed income instruments, such as treasuries and corporate bonds, as well as generally lower duration.
Experienced team
Supported by our global credit platform, our high-yield investment team generates high-conviction ideas using a combination of top-down macroeconomic allocation views and bottom-up in-depth fundamental analysis of bond issuers. This allows them to identify compelling opportunities across the broad and diverse high-yield universe that can help provide stability and diversification, and boost potential in investors’ portfolios.
Disciplined risk management
To mitigate risk, the team’s robust and repeatable investment process concentrates on high-quality bond issuers and diversification in its portfolio construction. ESG¹ criteria is also integrated at every stage of the investment process, which can, for example, help to identify more resilient bonds and/or issuers, promote resilience in changing markets, and may enhance risk-adjusted returns.
Team and expertise
The euro high yield bond strategy is managed by Olivier Monnoyeur and support by fellow Euro High Yield team members Stef Abelli and Gilles Caraguel, all based in London. Serving as both portfolio manager and analyst, each team member contributes a strong background in credit research and is responsible for a given number of sectors within the European high-yield universe. Together, they have more than 20 years’ average industry experience² and manage around EUR 40 billion of global credit assets covering the entire securities and rating spectrum, from fixed income loans to securitised debt.³
The team is part of BNP Paribas Asset Management’s Global Fixed Income investment group, which helps to ensure a global approach that considers all investment possibilities. To this end, they frequently collaborate with our other fixed income teams including, but not limited to, High Yield and Investment Grade Corporates, Emerging Markets, Structured Securities, Global Rates, and Money Markets. Notably, they benefit from access to our extensive Global Fixed Income Credit Research platform,⁴ as well as our dedicated Sustainability Centre, Quantitative Research Group and Global Macro Research team.
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 Collateral Management Risk, Counterparty Risk, Credit Risk, Derivatives Risk, SFT Risks, Extra-Financial Criteria Investment Risk, High Yield Bond Risk, and Liquidity Risk.
For a complete description and definition of the strategy’s generic and specific risks, please refer to the Prospectus and KID.
Visit our fund centre
Learn more about our Euro high yield bond strategy
Put the power of bonds to work
Discover our fixed income solutions and expertise
[1] ESG: Environmental, Social and Governance. ESG assessments are based on BNP Paribas Asset Management’s proprietary methodology, which integrates all three aspects of E, S and G.
[2,3,4] BNP Paribas Asset Management as of 31/03/26
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.