Quality as a factor in systematic corporate bond management
Fixed income factor investing is on the rise, yet many bond investors still haven’t explored it like equity investors have. Our new white paper peels back the layers of factor-based corporate bond strategies to show you where untapped sources of return may lie.
Key takeaways
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The interplay of quality, value, and carry: three factors dilute the return advantage – any two suffice.
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A multidimensional definition of quality that transcends simple credit ratings to reflect true financial strength.
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Empirically validated premium structure: credit-risk and low-risk premiums are consistently present in every pairwise combination of factors.
Find out how quality, value and carry interact in a corporate bond portfolio — and why adding all three can actually dilute your edge and get to know a richer, multidimensional definition of quality that goes beyond credit ratings to measure a company’s true financial strength.
Empirical evidence proving two distinct premiums in corporate bonds — a traditional credit risk premium and a low-risk premium — learn how any pair among value, carry and quality tracks these in line with our theory.
Our white paper provides a clear, practical framework for using a quality factor to capture low-risk returns, strengthen your factor mix and build more resilient portfolios — backed by both theory and real-world data.
Ready to deepen your fixed-income playbook? Download the full white paper now.
