Featured Papers and Interviews with Industry Thought Leaders
Many factors can explain return attribution differences in credit portfolio returns – curve, interest rate positioning, sector allocation, and security selection. Solid bottom-up fundamental credit research is certainly a cornerstone of any successful corporate bond management strategy, as most managers generally achieve a majority of their excess returns through sector allocation and security selection.
The portfolio construction process itself is complex, requiring detailed analysis, a keen eye for relative value, opportunistic trade execution, and great portfolio management software. On top of this, there is the belief that many portfolio managers underestimate the diligence that is required on the front end of the process in order to outperform the relevant benchmark.
This Special Report describes how the portfolio construction process can be used for alpha generation, by focusing on volatility and downside protection.