Reported about 22 hours ago
Quantitative investors are increasingly focusing on portfolio trading as a means to navigate the challenging corporate bond market, valued at $8 trillion. Major firms like Man Numeric and Robeco are championing this approach, which facilitates large trades and enhances liquidity. Portfolio trades achieved a record 9% of US corporate bond volume last year and are projected to rise above 30% in the next 18 months. As factor investing gains traction in corporate debt, this strategy is poised to further streamline execution for quant investors through the collaboration with ETFs, which are crucial for facilitating bulk transactions.
Source: YAHOO