Bond Strategies

IQAM Invest offers three specially developed, scientifically well-founded bond models:

1) IQAM Interest Rate Forecasting Model (for euros and US dollars)

The IQAM Interest Rate Forecasting model uses various macroeconomic value factors (e.g. inflation and output gap) and capital market factors (e.g. current interest rate) to observe the current interest rate and forecast its future development. The (in our view) optimal duration is based on the deviation of our interest rate forecast from the interest rate curve that the market factored in through forwards.

2) IQAM Euro Government Bond Model

Recent years showed that successful investment in euro government bonds not only depends on the appropriate duration, but also at least as much on the appropriate selection of countries. The IQAM Euro Government Bond model systematically gauges the credit risk of each country. This is achieved using our proprietary scientifically innovative model to forecast credit spreads, on the basis of which a return forecast is made for each country.


Challenges in the Area of Government Bonds

IQAM Invest’s new scientific model for forecasting credit spreads

3) IQAM Emerging Markets Bond Model

Our studies indicate that there is a connection between the following three factors and future performance: Credit Default Swaps (CDS), the interest differential and actual exchange rates. The weighting of individual countries is determined by optimisation of these parameters.

Our bond strategies are offered for:

  • Quasi money market funds
  • European government bonds
  • Government bonds
  • Emerging markets government bonds (in local currency)
  • Global government bonds
Important information

The content given shall only be used as for informational purposes and does not depict an offer or a recommendation to buy or sell financial products. It also does not include any requests to submit such an offer nor was it prepared with the intention of issuing legal or tax advice. The value of financial instruments is subject to fluctuation and can therefore rise and fall. Financial instruments which are denominated in foreign currencies can experience negative effects on the return if the currency fluctuates.  The strategies described here can also be changed without any prior announcement. This content was prepared to the best of our knowledge. Possible errors and falsities excepted.