Taking the mystery out of multi-asset credit investing

Perhaps the most confounding question of all: How does one even measure “success” in such a heterogeneous investment realm? Fixed Income Investment Directors Anand Dharan and Amar Reganti lay out a robust framework for doing so.

The views expressed are those of the authors at the time of writing. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional or institutional investors only.

IN A SENSE, THE MULTI-ASSET CREDIT (MAC) UNIVERSE IS A STUDY IN CONTRASTS — full of opportunity, yet shrouded in mystery for some investors. For example, what are some formulas for success when managing a strategy that invests across such a wide array of credit sectors (e.g., high-yield corporate bonds, emerging markets debt, floating-rate loans, securitized credit)? How can investors in the strategy identify the sources of value-add?

And perhaps the most confounding question of all: How does one even measure “success” in such a heterogeneous investment realm, populated by a slew of often-dissimilar approaches that may have sharply divergent asset allocations, average credit qualities, and investment philosophies? For retail and institutional investors alike, trying to evaluate and compare strategies that reside within this domain can be a daunting exercise.

With these challenges in mind, we have built what we consider to be a robust framework for defining and measuring success in the MAC universe. It is designed to help determine if a MAC solution is indeed adding value in the manner intended by the portfolio manager, while avoiding misleading apples-to-oranges comparisons…

To read more, please click the download link below.

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