Get ahead with Eurizon's bond strategies

Investing in Eurizon bond funds to exploit the interest
rate path

Bond markets remain appealing in the medium term, especially for short to medium maturities and inflation-linked securities. The conclusion of monetary tightening, and the easing cycle expected to start between the second half and last quarter of the year, bodes well for spread bonds.
Bond market yields remain attractive in this 2024, particularly from a medium to long-term perspective. Expectations indeed point to very appealing yields, supported by an economic scenario that should witness a reduction in inflation levels, albeit with ups and downs, especially in the United States.

In any case, there are no expectations for a resumption of central bank rate hikes, but only a postponement of the start of the rate cut cycle and a reduction of its overall size. Also, the longer the central bank keep rates at their current levels, the longer investors will keep cashing in substantial short and medium term coupons in excess of inflation.

Furthermore, the longer maturities should mostly be considered as insurance against the risk of a future macro slowdown. An insurance than pays the policy underwriter (and not vice versa) in the form of positive real rates. 

At the current spread level, euro area countries, particularly peripheral ones including Italy, should benefit from the phase of declining interest rates, as higher-debt countries are expected to bear lower debt burdens. Therefore, the view on instruments such as BTPs is positive because the yield curve is still positively sloped. Consequently, long-term yields are higher than short-term ones. Additionally, volatility in Eurozone is decreasing, improving the risk-adjusted volatility and expected return. Furthermore, investors, especially international ones, are currently underweight compared to previous years.

The view is constructive and prospects remain favorable also for credit, where spreads still have room for further decline compared to typical end-of-cycle levels. Corporate balance sheets are robust, thanks in part to favorable financing and refinancing rates set in recent years. Companies have ample cash availability, and earnings dynamics are better than expected. The maturity profile is favorable as refinancing needs are deferred to 2025/2026.

Why choose a Eurizon bond strategy

The new global scenario is rife with challenges, and must be taken on with a strategy, tactics, and an expert asset manager who can think and act ahead of time to make the most of the opportunities that arise on the market. Eurizon currently invests over 200 billion euros of its total assets under management in bonds, and can boast many years of experience and specialisation in addressing this asset class.
specialised in the bond market 
of bond funds with 4 or 5-star Morningstar ratings*
on total funds under management**

Our solutions in the spotlight

Epsilon Fund - Euro Bond

Finding value by controlling volatility and drawdown

(Risk Class: 2, the risk indicator assumes you keep the product for 4 years)

Eurizon Fund -
Limited Tracking Error - LTE

Broad and diversified range of LTE products

* Morningstar assigns ratings based on comparisons of all funds within a specific Morningstar Category, rather than all funds in a broad asset class. Morningstar is not responsible for any damages or losses arising from any use of this information. For more information about the Morningstar ratings:

** Source: Morningstar - data as at 30 April 2024

This is a marketing communication. Before taking any investment decision, you must read the Prospectus, the Key Information Document (the “KID”), as well as the Management Regulations and the last available annual or semi-annual financial report. These documents are available in English (and the KIDs in an official language of your country of residence) and may be obtained at any time, free of charge on the Management Company’s website
The content of this document, including any opinions, does not constitute any legal, tax or investment advice. Past performance does not predict future returns. There is no guarantee that the positive forecasts mentioned in this document will be reached in the future. Please liaise with your tax and financial advisor to find out whether a product is suitable to your personal situation and understand the related risks and tax impacts. The tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Should the Sub-Fund be registered/authorised in your country, the entity in charge of processing subscription, repurchase and redemption orders and other payments to unit-holders relating to the units of the UCITS (“Order & Paying facilities”), as well the entity in charge of handling information and Fund documents (“Information facilities”).
A summary of your investor rights including common actions in case of litigation at EU and national level is available in an official language (or authorised language) in the country of registration at
Before making a decision to invest, please also consider all the ESG characteristics or objectives and read the Prospectus, the SFDR Pre-contractual disclosure, as well as the Summary of the website Product disclosure, available in English and in an official language of your country of residence, in the section “Sustainability Disclosure” of the website at:
The Management company reserves the right to terminate the marketing arrangements of the Sub-Fund in your country.

This website uses technical cookies and so-called analytical cookies of "third parties" to ensure its technical operation and to analyze website's visits in an aggregated and anonymous way. For further information on cookie management, it is possible to consult the dedicated information notice.