Why Today’s Heightened Dispersion Suits a Systematic Approach

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Why Today’s Heightened Dispersion Suits a Systematic Approach

institutionalinvestor

2 months ago

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Today’s credit markets look deceptively dull: while average spreads are tight, dispersion across issuers is unusually wide. That combination reshapes where returns come from. The lesson for investors? Adapt to prevailing market conditions: when credit beta is scarce, it’s time to focus on alpha from security selection. These are the environments where systematic approaches shine brightest.Credit Markets Point to a Shift in Return Drivers

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