Nathalie Pistre is Head of Research & SRI at Ostrum, an affiliate of Natixis Investment Managers. She’s been with the Natixis group since 2002. She was responsible for Ostrum's quantitative research and coordinated the integration of ESG into Ostrum's management processes before taking over as head of research and SRI in 2020.

Diversification and bond portfolio management often go hand in hand. There are two reasons for this: firstly, because the multitude and variety of asset classes underlying the bond market means there is a wide gap between the asset considered to be the safest in the world (Treasury notes) and the debt of financially fragile companies (high-yield bonds). Secondly, because at the “lower” level, i.e. within the indices, these asset classes contain hundreds of different securities.

Nathalie Beauvir-Rodes is Head of Sustainable Bond Research and Analysis at Ostrum AM, an affiliate of Natixis Investment Managers. Having moved into the role in 2020, she sees it as a continuation of a career that has been shaped and motivated by investing in sustainable bonds.

Ostrum AM is a longstanding advocate of inclusion and diversity in the workplace, and with this goal in mind we decided for the second time to assess the impact of our initiatives and identify areas for future improvement, relying on an external certification body, Mixity.

The fixed income bond market is comprised of different types of debt. Subordinated debt sits at the lower end of the debt stack, just before equity. In case of a default, repayment of subordinated debt will come after the other bond tranches.  This implies that subordinated debt bears a higher risk for investors. Therefore, in return, subordinated debt bonds compensate investors with higher yields. As a result, the asset class offers a compromise in terms of risk and returns, positioning it in the middle of the capital structure, just between equities and senior bond tranches. European banks represent the largest sub-segment of the subordinated debt asset class. This is related to the regulatory framework and its stringent rules in terms of bank capital requirements. Issuing subordinated debt allows banks to increase their capital ratios while at the same time it serves to strengthen their creditworthiness. In 2023, after a turbulent month of March, the subordinated debt market has moved back in the spotlight. The asset class’s valuations have improved, offering an opportunity to gain access to higher yields from subordinated bonds issued generally by investment grade quality signatures. The subordinated debt market is characterised by a strong “euro” bias, resulting from technical factors (European regulatory framework) that favour issuance versus issuing equity to strengthen capital structures. According to Ostrum Asset Management (Ostrum AM), subordinated debt is an instrument which can be used to diversify fixed-income allocations, offering additional yield pick-up. And it can add value to responsible bond allocation as the sustainable subordinated bond market is developing.

IPE recently published its annual asset management report for Europe and globally.

The year 2023 marks the 30th anniversary of the entry into force of the Convention on Biological Diversity. And yet, while major global forums – COP 15 in Montreal in December, the International Seabed Authority Council in Kingston and the One Forest Summit in Libreville in March – have punctuated the news in recent months, a detailed understanding of biodiversity issues is still limited to a college of experts. The climate threat has long dominated political, economic and media debates, with many believing that the fight against climate change automatically goes hand in hand with the preservation of life. Yet while the consequences of biodiversity loss may seem less glaring than climate catastrophes, their scale is enough to make you break out in a cold sweat: we're on the verge of a sixth mass extinction, with species disappearing at a rate 100 to 1,000 times higher than the natural rate; almost 75% of terrestrial environments and 40% of marine ecosystems are reportedly already degraded. 

As part of Natixis Investment Managers' Premium Partnership for the 20241 Paris Olympic and Paralympic Games, Ostrum AM is proud to support Amandine Buchard judokate.

Investors, whether institutional, banks or retail, are all looking for investments in line with their convictions, especially in terms of environment. Beyond the climate concern, they seek to participate in changes according to a Just Transition, which is socially responsible. These ambitions support the sustainable bond market, with the search for impact solutions, both from issuers – including governments – and from investors.