Traditional and Alternative Factors in Investment Grade Corporate Bond Investing
Monday 25 February 2019
Research / Market
Traditional and Alternative Factors in Investment Grade Corporate Bond Investing
The concept of factor investing and the debate around passive and active management has emerged since the end of the 2000s and has completely changed the landscape of equity investing. Today, institutional investors structure their strategic equity allocations essentially around risk factors. Size, value, low beta, momentum and quality are among the most popular factors in use. The factor-investing approach has recently been extended to multi-asset portfolio management and it is known as the Alternative Risk Premia (ARP) model.