Uncovering Hidden Alpha in Credit Selection

Investing in credit markets has grown increasingly complex due to the vast number of bonds in the global investment-grade and high-yield universes, making security selection both daunting and time-consuming. To address this challenge, the Core Score methodology combines quantitative and fundamental research, leveraging the strengths of both approaches. Quantitative research offers broad market coverage, while fundamental research provides in-depth analysis and future forecasting, creating a comprehensive and dynamic security selection process.

This dual approach allows investors to swiftly react to market changes and pricing shifts, which is crucial in fast-moving markets where credit sell-offs occur rapidly. The Core Score's digitized platform enables immediate access to opportunities, enhancing the ability to generate alpha through security selection. By identifying pricing inefficiencies over time, the approach avoids concentrated bets and instead capitalizes on the accumulation of small advantages, akin to snowflakes in a snowstorm.

The scalability and repeatability of this method provide a strategic edge, benefiting client portfolios with a higher probability of sustained alpha generation. While these insights offer a promising framework for investment strategies, they are subject to change and do not represent comprehensive investment advice.