Covered bonds are an essential financing instrument for banks in the euro area. ECB monetary tightening affects the covered bond market directly with the unwinding of CBPP3  holdings and indirectly with the TLTRO  repayment (freeing covered bond collateral). Mortgage loans are the main collateral for covered bonds. Housing has been hit by higher rates so that bank lending to households for house purchase shrunk. Covered bond supply should slow reflecting declining lending flows. Covered bond spreads tend to compare favorably to other similarly low-risk asset classes.

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The 2024 Lipper Fund Awards Europe have singled out our “Euro Inflation” strategy with the “Best Fund over 5 Years” and the “Best Fund over 10 Years” awards in the “Bond EUR Inflation Linked” category, as well as the “Actions CAC 40” strategy which received the “Best Fund over 3 years” award in the “Equity France” category.

As part of a strong and ambitious CSR strategy, Ostrum Asset Management is lending its support to a collaborative commitment on the issue of plastic initiated by the PRI, Finance for Biodiversity Foundation, UNEP FI, Business Coalition for a Global Plastics Treaty, and the CDP.

In 2023, equity markets experienced a significant shift with the outperformance of Growth and Cyclical segments, driven by factors such as resilient economic activity, decreasing inflation, and expanded valuation multiples due to the surge in sentiment around generative AI.

On 18 March, as part of the UCITS Hedge Awards 2024 of the Hedge Fund Journal, Ostrum AM’s Volatility Alternative Income strategy was awarded a trophy in the Volatility Trading (Discretionary) “Best Performing Fund over 10 Years” category.

Every year, Ostrum AM publishes a Report on its exercise of voting rights.

Every month, find out all about the sustainable market bonds news in our newsletter « MySustainableCorner ».