Please provide your details to access the whitepaper
With the economy on the mend, investment grade credit spreads tightening surpassed pre-pandemic levels. This caused investors to wonder if it’s a return to normal or an overheated market. Since the future is unknowable, we avoid making predictions about spread movements. Instead, we focus on managing to a neutral credit beta and preparing for volatility.
A disciplined portfolio construction process can:
- avoid excess volatility
- offer downside protection
- be a source of alpha for investment grade bond portfolios
Checkmate your biases in investment grade investing
Many managers strive for the lowest tracking error possible, even choosing to own securities or sectors they don't find attractive. How can investors select managers positioned to achieve strong-risk adjusted returns throughout each stage of a market cycle?
Tapping a misunderstood alpha source: How portfolio construction can unlock excess returns
In their search for alpha, investors frequently overlook the structural elements of constructing a portfolio. By avoiding unexpected biases and worrying less about tracking error, divergance from the benchmark may create opportunities for unexpected alpha.