What is Fixed Income?

Fixed Income is a catch-all term for investments within the world’s debt and credit markets. It is also a style of investment that has traditionally been associated with helping to mitigate against capital loss.

An ongoing evolution

Fixed income markets have changed dramatically since the global financial crisis. Central banks have pumped enormous amounts of liquidity into the system helping to depress yields. In addition regulations have increased, which has pulled liquidity out of the system and, after a long period languishing at or near historic lows, interest rates in the developed world have begun to rise. As a result, investors are having to approach fixed income markets differently, and increasingly, are looking for new ways to diversify their sources of income.

Our approach to Fixed Income

We believe the key to superior long-term returns in the fixed income market is compounding current income and avoiding principal loss through fundamental credit analysis and macroeconomic research. At the heart of our investment approach lies a robust, repeatable, global investment process, focused on the monitoring of risks. We understand credit, interest rate and market risk and, where possible, manage against these risks in an effort to deliver consistent performance to our clients.

Investment styles

Our range of expertise covers active, buy and maintain styles as well as a dedicated insurance capability.

Within active, we have benchmark strategies in the major fixed income sectors and flexible strategies that aim to deliver performance with a low correlation to both interest rate and credit risk. We also offer customised solutions to meet a variety of client needs.

Our buy and maintain strategies aim to provide an answer to the challenge of market illiquidity. With a strong focus on credit fundamentals and a conservative construction approach, our buy and maintain offering aims to maximise yield over the long-term while mitigating volatility.

" We focus on the needs of our clients, developing solutions that span the majority of the credit continuum."
Hans Stoter, Global Head of AXA IM Core.

Fixed Income in figures

  • €537 bn

    assets*

  • 103

    professionals

  • 25+

    years experience

  • 3

    continents

*Assets under management after delegation to the other asset classes as 31-12-2020 (AXA IM Database)

203 insights found

Getting hot?

Worries about the economy overheating appear to have been overdone as the delta variant reminds us that the battle with the pandemic is far from over.

Richness all around

Thinking about thinking

It appears that the US Federal Reserve (Fed) is closer to achieving its inflation target than it expected to be when the “average inflation rate” framework was first presented.

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This page is for informational purposes only and does not constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services and should not be considered as a solicitation or as investment, legal or tax advice. The strategies discussed herein may not be available in all jurisdictions and/or to certain types of investors. Opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. No guarantee, warranty, or representation is given as to the accuracy or completeness of this material. Reliance upon information in this material is at the sole discretion of the reader. This material does not contain sufficient information to support an investment decision.