Many credit managers are making this one mistake.
Are you missing new sources of alpha because of it?


Many factors can explain return attribution differences in credit portfolio returns. However, credit investors may be exposed to unnecessary downside risk when behavioral biases lead credit managers to overweight more risky corporate issues.

In this summary paper, we explain:

  • Why investors should look more closely at the portfolio construction process when considering and evaluating corporate credit managers
  • How effective portfolio construction can potentially result in consistent and uncorrelated excess returns over the course of a full investment cycle


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