“Whereas yields are very low on the government bond an investment grade credit side, subordinated bonds and high yield have very decent yield pick-ups and expected returns. So not all bonds are unattractive,” says De Kleer.
However, increasing your exposure to these areas inevitably means your portfolios get a higher risk exposure. “Of course we all have our boundaries, there are limits to how far you can go overweight. But if you want to make some returns, you have to take more risk in these times.”
In part one of the interview, Marcel explains why he has a preference for passive solution in the investment-grade bond space at the moment.