Quant Credit

Why is quant credit such a niche area of investor interest compared to quant equity?

In a market rife with inefficiencies, the attraction of a systematic approach that makes use of the growing amount of data generated by the fixed income and credit markets is clear. And when 99% of all high yield assets are managed using traditional discretionary methods, a systematic approach could also offer alpha opportunities to those early movers.

Read our in-depth report on why we are on the cusp of significant growth in quantitative investing in credit markets:

  • Sections 1 & 2 compare the rise of quant equity and quant credit in more detail.
  • Sections 3 & 4 look at the mechanical differences between credit instruments and the dynamics of trading and execution.
  • Sections 5 & 6 look at the application of factors and data to credit investing.
  • Sections 7 & 8 look at specialist applications and opportunities: ESG & Fallen Angels.
  • Section 9 ends the paper with a discussion of what the future of quant credit might hold.

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Meet the authors:

  • Paul Kamenski, Co-Head of Credit, Man Numeric
  • Robert Lam, Co-Head of Credit, Man Numeric
  • Ed Cole, Managing Director Discretionary Investments, Man GLG
  • Alex Preston, Client Investment Strategist, Man Group

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