Credit quants push strategy that lured trillions in stock market
A small group of pioneers is hoping that factor investing, which has grown into a multi trillion-dollar market in equities, can become the next big thing in the world of corporate bonds — particularly with Donald Trump’s agenda sending shock waves across assets.
This cohort has spent years trying to make inroads into the debt market with factor investing, which buys and sells securities based on characteristics like how cheap they are or how much their prices move around. But progress has been slow and patchy, held back by everything from technical challenges to academic disputes.
Now, with electronic trading firmly established, a raft of fixed-income ETFs coming online and volatility flaring across bonds, interest in the approach is…
