Investment Intel by Jakub Krivan #2: CROSSOVER BONDS: HIGHER YIELD, LOWER RISK

Last year, we at @C-Quadrat were approached by @Erste Private Banking to develop a custom investment opportunity exclusively for their clients. With an aim of 2.5% yield and comparatively low risk, the Crossover Bond Fund is a great option for those looking for higher returns while staying safe.

What are Crossover Bonds? Crossover bonds are corporate bonds that arch over the boundaries between investment-grade products and high-yield products. That's why their development requires an experienced team of investment experts to thoroughly analyze individual bonds and create a portfolio that is stable, but yields interesting returns at the same time.

In other words, the right mix of crossover bonds offers an attractive yield to risk ratio for you to take advantage of. One of such bonds is the C-Quadrat Crossover Bond Fund that we made to measure exclusively for Erste Private Banking clients.

Crossover Bond Fund by C-Quadrat The basis of the fund for Erste was formed by a detailed analysis of more than 50 bonds. These were then used to make up a porftolio of European crossover bonds that offer an attractive investment profile in their credit rating.

More than that, we've also gone the extra mile and complemented the mix by hedged Asian bonds and implemented a buy and watch strategy into the product as well. This permanently monitors the fund for any changes in the portfolio, making it a safer product altogether.

C-Quadrat Crossover Bond Fund in Brief:

• Tailor-made for clients of ERSTE Private Banking
• Utilizes a thorough analysis of more than 50 bonds by C-Quadrat's expert team
• Combines better yields than investment-grade bonds, with proportionally lower risks
• Aim to offer return of 2.0–2.5% p.a. with a 7-year maturity
• Currently yields 8.93% YTD (September 2019)

The Takeaway: Crossover Bonds offer a great way to combine high yields with comparatively low risk.

All things considered, they might be a wise investment decision. Why? Because with a custom-made investment product, you're backed by analysis, experience and attention to detail – and you'll need all of those to succeed in the long term.