New investment strategy outperforms corporate bond indices, boosting returns significantly.
The study found that by using factors like value, quality, low risk, and momentum, investors can select corporate bonds with higher risk-adjusted returns. By focusing on the cheapest bonds with strong performance trends from profitable, well-managed, and less risky companies, investors can outperform benchmark indices in U.S. Investment Grade, Euro Investment Grade, and U.S. High Yield corporate bond universes.