Central banks’ quantitative easing measures have compressed yields and introduced an investment dilemma among investors. Innovative income solutions are key in helping investors in solving compressed yields problems.

Investors are increasingly sacrificing credit risk and taking on increased duration as well as looking into riskier asset classes in order to achieve recent returns which they used to receive in the past taking on less risk.

Besides, regulatory constraints in the High Yield space and capital ratio requirements make it difficult to find the solution that meets expectations. On the equity investment side the sky isn’t always bright either, where equity valuations can be stretched in an uncertain market with critical drawdowns.

Hence, introducing innovative solutions to income investing is key in helping investors in solving this compressed yields dilemma. We believe that investors looking to generate a regular and enhanced income with a balanced risk return profile should find the right match for their needs across asset classes with scaled risks. Thus, developing the right solutions aiming for interesting and diversified yields, some protection against large market corrections, addressing regulatory constraints as well as delivering Solvency Capital Requirement solutions is at the core of our “income generation” suite of funds.

At the heart of this investment topic, BNP Paribas Global Markets and BNP Paribas Asset Management have combined their investment and research know-how so as to provide investors with cutting edge solutions within the THEAM Quant Funds suite, to meet their expectations.