{"id":135871,"date":"2023-12-12T09:46:51","date_gmt":"2023-12-12T09:46:51","guid":{"rendered":"https:\/\/www.quoniam.com\/?page_id=135871"},"modified":"2025-07-30T07:06:57","modified_gmt":"2025-07-30T07:06:57","slug":"high-yield-minrisk","status":"publish","type":"page","link":"https:\/\/www.quoniam.com\/en\/strategies\/fixedincome\/high-yield-minrisk\/","title":{"rendered":"High Yield MinRisk: Exploiting opportunities, reducing risks"},"content":{"rendered":"\n<div class=\"wp-block-group is-style-smallBG\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h3 class=\"wp-block-heading has-text-align-center\">Exploiting opportunities, reducing risks<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">High yield markets consist of a diverse range of issuers. Whether fallen angels or rising stars, investors require a strategy that captures the opportunities in the higher quality buckets, while avoiding the issuers heading for downgrades and defaults.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Quoniam Global High Yield MinRisk strategy combines active selection with portfolio diversification in a systematic approach and exploits anomalies. Designed as a short duration strategy, we invest primarily in the higher quality segment of the high yield market and limit risk through multi-dimensional diversification.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group is-style-smallBG\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading has-text-align-center\">The Quoniam solution: Less risk often means more return<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Our MinRisk approach is designed to target the sweet spot of the high yield market and systematically reduce concentration risk. By avoiding high individual issuer and sector risks, we significantly improve diversification compared to a standard index.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The strategy aims to maximise the Sharpe Ratio and improve risk-adjusted performance independently of a benchmark. MinRisk stands for strict risk management, independent of index characteristics, and a high level of diversification across multiple risk dimensions.<br><\/p>\n\n\n\n<h5 class=\"wp-block-heading\">High Yield MinRisk: Focus on the optimal risk\/return ratio<\/h5>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.quoniam.com\/wp-content\/uploads\/2023\/12\/QU_Grafik_High_Yield_EN.svg\" alt=\"\" class=\"wp-image-135894\"\/><\/figure>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group is-style-default\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading has-text-align-center\">Our approach: Connecting different performance sources<\/h3>\n\n\n\n\n\n    <div class=\"accordionWrapper qm-element\" style=\"--color:;\">\n        <ul class=\"accordion\" data-accordion data-allow-all-closed=\"true\">\n                            <li class=\"accordion-item\" data-accordion-item>\n                    <a href=\"#\" class=\"accordion-title\">\n                                                <div> Exploitation of anomalies<\/div>\n                    <\/a>\n                    <div class=\"accordion-content\" data-tab-content >\n                        <div class=\"grid-x grid-padding-x align-top\">\n                            <div class=\"cell small-12\">\n                                <p>To achieve a higher risk-adjusted return, we exploit existing capital market anomalies.<\/p>\n<p>The <strong>low-volatility anomaly<\/strong>: Contrary to classical capital market theory, lower risk does not necessarily mean lower returns.<\/p>\n<p>The <strong>spread anomaly<\/strong>: Bonds with very high spreads deliver lower risk-adjusted performance because their probability of default is very high. Bonds with low credit spreads relative to their peers tend to lag the market. Selected high yield bonds with medium risk have yield advantages \u2013 this is the so-called \u201csweet spot\u201d.<\/p>\n<p>The <strong>duration anomaly<\/strong>: Short-term bonds tend to have lower volatility, but historically this has been associated with higher risk-adjusted returns. The return per unit of risk for short-term bonds tends to be higher than for long-term bonds.<\/p>\n\n                                                            <\/div>\n                        <\/div>\n                    <\/div>\n                <\/li>\n                            <li class=\"accordion-item\" data-accordion-item>\n                    <a href=\"#\" class=\"accordion-title\">\n                                                <div> Multi-dimensional diversification <\/div>\n                    <\/a>\n                    <div class=\"accordion-content\" data-tab-content >\n                        <div class=\"grid-x grid-padding-x align-top\">\n                            <div class=\"cell small-12\">\n                                <p>Traditional credit indices tend to have high issuer and sector concentrations. As a result, 10% of the index constituents can account for around 50% of the index weighting, with highly indebted issuers more prominently represented in the index. This is particularly relevant for the riskier part of the investment universe. Being too close to a high yield benchmark inevitably leads to defaults and the associated losses. The Quoniam strategy therefore invests independently of the benchmark, with security-specific position limits.<\/p>\n<p>The strategy increases diversification by constructing a portfolio with the following risk characteristics relative to the benchmark: sector risk parity, a large number of issuers, a higher position in EUR-denominated issues and shorter maturities.<\/p>\n\n                                                            <\/div>\n                        <\/div>\n                    <\/div>\n                <\/li>\n                            <li class=\"accordion-item\" data-accordion-item>\n                    <a href=\"#\" class=\"accordion-title\">\n                                                <div> Active security selection and risk management (multi-factor model) <\/div>\n                    <\/a>\n                    <div class=\"accordion-content\" data-tab-content >\n                        <div class=\"grid-x grid-padding-x align-top\">\n                            <div class=\"cell small-12\">\n                                <p>We use our proprietary multi-factor forecasting model to select securities. The key advantage: when applying the factor approach, the model decomposes a bond&#8217;s expected return into systematic factors associated with risk premia. These hidden sources of return are often missed by traditional discretionary strategies.<\/p>\n\n                                                            <\/div>\n                        <\/div>\n                    <\/div>\n                <\/li>\n                    <\/ul>\n    <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group is-style-smallBG\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">ESG: All Quoniam mutual funds apply an integrated ESG approach. Individual client guidelines can be implemented in mandates.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group alignfull\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading has-text-align-center\">High Yield MinRisk at a glance<\/h3>\n\n\n\n\n\n\n    <div class=\"grid-container iconBoxWrapper qm-element\">\n        <div class=\"grid-x grid-padding-x grid-padding-y grid-margin-y grid-margin-x small-up-1 medium-up-2 large-up-3 align-center \" data-equalizer data-equalize-on=\"medium\">\n                                    <div class=\"cell\" data-equalizer-watch>\n                        <div class=\"content\">\n                            <div class=\"main-content\">\n                                \n                                <div class=\"text\"><p><strong>Reduced risk<\/strong><br \/>\nThe Quoniam High Yield MinRisk Global strategy offers investors a risk-reduced entry into the high yield corporate bond market.<\/p>\n<\/div>\n                            <\/div>\n                        <\/div>\n                    <\/div>\n                                    <div class=\"cell\" data-equalizer-watch>\n                        <div class=\"content\">\n                            <div class=\"main-content\">\n                                \n                                <div class=\"text\"><p><strong>Increased diversification<\/strong><br \/>\nThe benchmark agnostic approach helps to avoid concentration risks and diversify portfolios across multiple dimensions.<\/p>\n<\/div>\n                            <\/div>\n                        <\/div>\n                    <\/div>\n                                    <div class=\"cell\" data-equalizer-watch>\n                        <div class=\"content\">\n                            <div class=\"main-content\">\n                                \n                                <div class=\"text\"><p><strong>Better drawdown protection<\/strong><br \/>\nThe High Yield MinRisk strategy has proven its added value in various crises and has mitigated losses.<\/p>\n<\/div>\n                            <\/div>\n                        <\/div>\n                    <\/div>\n                                    <div class=\"cell\" data-equalizer-watch>\n                        <div class=\"content\">\n                            <div class=\"main-content\">\n                                \n                                <div class=\"text\"><p><strong>More sources of return<\/strong><br \/>\nImplementing bond selection through the multi-factor quantitative forecasting model enables a daily valuation of the entire global universe, which can enhance returns.<\/p>\n<\/div>\n                            <\/div>\n                        <\/div>\n                    <\/div>\n                                    <div class=\"cell\" data-equalizer-watch>\n                        <div class=\"content\">\n                            <div class=\"main-content\">\n                                \n                                <div class=\"text\"><p><strong>Improved risk\/return ratio<\/strong><br \/>\nThe strategy uses scientific evidence to improve risk-adjusted returns.<\/p>\n<\/div>\n                            <\/div>\n                        <\/div>\n                    <\/div>\n                        <\/div>\n    <\/div>\n    \n\n\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group alignfull\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h6 class=\"wp-block-heading has-text-align-center\">insights<\/h6>\n\n\n\n\n\n        <div class=\"newsSliderWrapper qm-element\" style=\"--color:;\">\n            <div class=\"newsSlider\">\n                                    \n                    <div class=\"slide\">\n                    \n                        <div class=\"newsTeaserWrapper cell\">\n                                                            <a href=\"https:\/\/www.quoniam.com\/en\/video\/high-yield-minrisk-how-to-find-the-sweet-spot\/\" title=\"High Yield MinRisk: How to find the sweet spot\">\n                                    <div class=\"newsTeaser\">\n                                        <div class=\"image\">\n                                            <img decoding=\"async\" src=\"https:\/\/www.quoniam.com\/wp-content\/uploads\/2024\/01\/Quo-HY-MinRisk-D-W-Grafik-448x220-c-default.png\" loading=\"lazy\"\/>\n                                        <\/div>\n                                        <div class=\"info\">\n                                            <div class=\"preHeader\">\n                                                <div class=\"cat\">\n                                                    Video\n                                                <\/div>\n                                                <div class=\"date\">\n                                                    January 2024\n                                                <\/div>\n                                            <\/div>\n                                            <div class=\"headline\">High Yield MinRisk: How to find the sweet spot<\/div>\n                                            <div class=\"introText\">\n                                                                                                    <p>What makes high yield different from other asset classes? And why should high yield be considered in an investor&#8217;s asset allocation? In an interview with Jonathan Clenshaw, and Dr Harald Henke, Head of Fixed Income Strategy, answers these questions and explains why investing in Quoniam&#8217;s High Yield MinRisk approach can be an effective response to the risk\/return challenge over the long term.<\/p>\n\n                                                                                            <\/div>\n                                        <\/div>\n                                    <\/div>\n                                <\/a>\n                                                    <\/div>\n                    <\/div>\n                                    \n                    <div class=\"slide\">\n                    \n                        <div class=\"newsTeaserWrapper cell\">\n                                                            <a href=\"https:\/\/www.quoniam.com\/en\/article\/passive-vs-indexing\/\" title=\"Passive index replication or enhanced for corporate bonds?\">\n                                    <div class=\"newsTeaser\">\n                                        <div class=\"image\">\n                                            <img decoding=\"async\" src=\"https:\/\/www.quoniam.com\/wp-content\/uploads\/2025\/05\/passive-enhanced-448x220-c-default.jpg\" loading=\"lazy\"\/>\n                                        <\/div>\n                                        <div class=\"info\">\n                                            <div class=\"preHeader\">\n                                                <div class=\"cat\">\n                                                    Article\n                                                <\/div>\n                                                <div class=\"date\">\n                                                    May 2025\n                                                <\/div>\n                                            <\/div>\n                                            <div class=\"headline\">Passive index replication or enhanced for corporate bonds?<\/div>\n                                            <div class=\"introText\">\n                                                                                                    <p>Investors in near-passive credit products have more options than pure index replication. Enhanced is a strategy that goes beyond traditional passive approaches and aims to achieve a higher return than the benchmark with comparable risk. Dr Harald Henke, Head of Fixed Income, explains what sets enhanced strategies apart \u2013 and why it is a smart alternative for investors who want to optimise their portfolio.<\/p>\n\n                                                                                            <\/div>\n                                        <\/div>\n                                    <\/div>\n                                <\/a>\n                                                    <\/div>\n                    <\/div>\n                                    \n                    <div class=\"slide\">\n                    \n                        <div class=\"newsTeaserWrapper cell\">\n                                                            <a href=\"https:\/\/www.quoniam.com\/en\/article\/a-new-macro-world\/\" title=\"Market commentary bonds: A new macro world\">\n                                    <div class=\"newsTeaser\">\n                                        <div class=\"image\">\n                                            <img decoding=\"async\" src=\"https:\/\/www.quoniam.com\/wp-content\/uploads\/2025\/04\/2025-04_Header_FI-448x220-c-default.jpg\" loading=\"lazy\"\/>\n                                        <\/div>\n                                        <div class=\"info\">\n                                            <div class=\"preHeader\">\n                                                <div class=\"cat\">\n                                                    Article\n                                                <\/div>\n                                                <div class=\"date\">\n                                                    April 2025\n                                                <\/div>\n                                            <\/div>\n                                            <div class=\"headline\">Market commentary bonds: A new macro world<\/div>\n                                            <div class=\"introText\">\n                                                                                                    <p>The global political and economic landscape is on the verge of a profound change, having a significant impact on both, the US and Europe. In his market commentary, Dr Harald Henke, Head of Fixed Income, discusses the influence of rising interest rates, inflation and geopolitical tensions on your portfolio.<\/p>\n\n                                                                                            <\/div>\n                                        <\/div>\n                                    <\/div>\n                                <\/a>\n                                                    <\/div>\n                    <\/div>\n                            <\/div>\n        <\/div>\n<!-- \/News Slider --><\/div><\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-color-grey-light-background-color has-background\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n\n         <div class=\"qm-contact qm-element\" style=\"--color:;\">\n        <div class=\"qm-contact-grid\">\n            <div class=\"qm-contact-grid-item\" style=\"display: flex; align-items: center;\">\n                                    <img decoding=\"async\" class=\"img\" src=\"https:\/\/www.quoniam.com\/wp-content\/uploads\/2026\/07\/D-W_zitat_Siwicki.jpg\" alt=\"Marek Siwicki\" loading=\"lazy\"\/>\n                            \n            <\/div>\n            <div class=\"qm-contact-grid-item\">\n                <div class=\"qm-contact-content\">\n                    <p>\n                                            <strong><span class=\"red-font-color\">Get in touch with Quoniam,\u00a0<\/span><\/strong>and let\u2019s discuss your investment goals and how to achieve them.\u00a0Contact us for an analysis of the best strategy for you.\n                                        <\/p>\n                    <div class=\"qm-contact-info\">\n                                                    <strong>Marek Siwicki<\/strong>\n                                                                            <div><div>\n<div>Head of Client Relations International<\/div>\n<div>\n<div><\/div>\n<div>\n<div>T +44 (0) 203 2162 421<\/div>\n<div><span lang=\"DE\"><u><a tabindex=\"-1\" title=\"mailto:info@quoniam.com\" href=\"mailto:info@quoniam.com\" target=\"_blank\" rel=\"noreferrer noopener\">info@quoniam.com<\/a><\/u><\/span><\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n<\/div>\n                                                <div class=\"socialIcons\">\n                                                                                        <a href=\"https:\/\/uk.linkedin.com\/in\/marek-siwicki-22b85317\" target=\"_blank\" title=\"LinkedIn\">\n                                    <div class=\"vs-icon-linkedin\"><\/div>        \n                                <\/a>\n                                                       \n                        <\/div>\n                        \n                    <\/div>\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n    <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Exploiting opportunities, reducing risks High yield markets consist of a diverse range of issuers. Whether fallen angels or rising stars, investors require a strategy that captures the opportunities in the higher quality buckets, while avoiding the issuers heading for downgrades and defaults. The Quoniam Global High Yield MinRisk strategy combines active selection with portfolio diversification [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":251208,"parent":133221,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"","_seopress_titles_title":"High Yield MinRisk: Exploiting opportunities, reducing risks","_seopress_titles_desc":"The Quoniam Global High Yield MinRisk strategy combines active stock selection with portfolio diversification in a systematic approach and exploits anomalies.","_seopress_robots_index":"","footnotes":""},"class_list":["post-135871","page","type-page","status-publish","has-post-thumbnail"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/pages\/135871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/comments?post=135871"}],"version-history":[{"count":45,"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/pages\/135871\/revisions"}],"predecessor-version":[{"id":260464,"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/pages\/135871\/revisions\/260464"}],"up":[{"embeddable":true,"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/pages\/133221"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/media\/251208"}],"wp:attachment":[{"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/media?parent=135871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}