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chart about annualized returns, default rates, and return volatility by credit rating
Annualized Returns, Default Rates, and Return Volatility by Credit Rating
Historically, the BBB and BB rated segments of the corporate bond market have been significant sources of alpha generation across our strategies. While portions of the economy are slowing, we believe default rates in these quality segments will remain muted due to favourable supply/demand dynamics and fortified balance sheets. This setup gives us confidence that our corporate bond strategies focusing on BBB and BB rated credit can continue to add attractive risk-adjusted returns while maintaining the resilient attributes of fixed income.