Alternative Thinking

Style Investing in Fixed Income

Topics - Factor/Style Investing Multi-Style Fixed Income Investment Grade

Read Time - 15 mins

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Style Investing in Fixed Income

Systematic style investing is increasingly popular in equity markets but much less frequently applied in fixed income markets. In this paper, we show that the classic style premia that have been applied to stock selection and equity country allocation — value, momentum, carry, and defensive — could have also performed well in fixed income markets, whether in selecting government bonds or corporate bonds. Fixed income may be the next frontier for style investing.