By Fabio Iardino, Head of Structured Products at Eurizon

For this summer, my plans are set on heading back to my hometown—a vibrant, intense metropolis where ancient history and a stunning coastline sit right under the shadow of Vesuvius. Postcard views aside, Naples is a city that has learned to adapt over time. It comes with its share of challenges, but walking through its narrow historic streets, you can see how different layers of history still hold together and support a lively, modern community. My absolute favorite ritual there is simple: a quick, concentrated espresso taken standing up at the counter of a local bar, followed by an early morning walk right along the seafront before the city fully wakes up.

Finding that brief pocket of quiet looking out over the bay is the perfect way to clear my head, put the financial markets into perspective, and remind myself of the value of stepping back to see the broader picture.

Italians Appreciate the Clear Order and Structures in Switzerland

What always strikes me about Switzerland is its strong sense of order, functional precision, and clear-cut structure. Coming from Italy, that kind of systemic efficiency is something you can’t help but genuinely appreciate. I spend most of my working year buried in financial data, so I always look forward to visiting Switzerland just to clear my eyes with those landscapes. For anyone who loves the outdoors, the pristine look of the Swiss lakes and the quiet presence of the mountains offer the perfect setup to disconnect and recharge. And honestly, no trip there is complete without tasting some traditional Swiss dark chocolate—a simple, perfect reflection of the country itself: refined, consistent, and carefully crafted.

Fabio Iardino from Eurizon. (Image: Courtesy)

Current Focus on Liquid Segments in Europe

In today’s messy macroeconomic environment, investors looking for solid risk-adjusted returns are shifting focus. They want alternatives within the fixed-income and credit universe, away from crowded trades. Our team focuses entirely on the liquid segments of the European structured credit market, specifically Residential Mortgage-Backed Securities (RMBS), consumer and auto ABS, and Collateralized Loan Obligations (CLO). In the current market phase, these floating-rate instruments are a massive defensive tool. They give you a natural cushion against inflation volatility, while locking in predictable income streams linked to highly diversified pools of real-economy consumer and corporate loans.

The best opportunities today are balanced across different parts of the capital structure. Sure, senior tranches (AAA/AA rated) benefit from meaningful credit enhancement designed to absorb severe economic shocks. But we also see highly compelling risk-rewards in mezzanine tranches, where careful, deep credit work becomes the real key. This is exactly where we are particularly active. Across both segments, institutional portfolios can grab a significant yield pickup compared to traditional corporate bonds, combining robust structures with a consistent historical track record.

But you have to be highly selective. Even if aggregate corporate and consumer data looks healthy on paper, we are keeping a very close eye on the lagging impact of tight monetary policy, especially on more vulnerable borrower segments.

Transparency also plays a central role. We actively avoid transactions that are difficult to analyze or lack clear reporting, and we steer completely clear of structures with weak investor covenants. In structured credit, safety isn't about chasing the highest marginal yield. It's about verifying the strength of the underlying collateral and understanding exactly how the architecture is built. By prioritizing transparency and active selection, it is entirely possible to generate stable, high-quality cash flows while keeping macro volatility under control.