RT Journal Article
SR Electronic
T1 Style Investing in Fixed Income
JF The Journal of Portfolio Management
FD Institutional Investor Journals
SP 127
OP 139
DO 10.3905/jpm.2018.44.4.127
VO 44
IS 4
A1 Jordan Brooks
A1 Diogo Palhares
A1 Scott Richardson
YR 2018
UL https://pm-research.com/content/44/4/127.abstract
AB Style investing has become part of the investing nomenclature for equity markets. To date, despite the massive size of fixed-income markets, little research has examined the efficacy of style-based investing in fixed income. In this article, the authors summarize a common style-based framework for capturing excess returns for both government and corporate bonds. Importantly, from an investor perspective, these style-based excess returns are highly diversifying with respect to the classic risk premiums in fixed-income markets (i.e., term premium and credit risk premium) and exhibit low macroeconomic sensitivities.TOPIC: Style investing