Sponsored by VanEck
Undervalued bonds which provide excess spread relative to their fair value may be a source of outperformance versus the broad market in credit investing, thanks to their upside potential. However, this does not simply mean buying the highest yielding bonds. Yields and spreads imply risk, and investment grade bond investors who do not accurately evaluate the risk of their holdings may be assuming significant default or downgrade risk. So how can one decide if an investment grade bond represents attractive value? This whitepaper details VanEck’s approach to selecting bonds with the highest excess spread relative to their fair value.
- What is "Value" in Investment Grade Bonds?
- Taking a Quantitative Approach to Security Selection
- How to Identify Real Value
- Adding an Investment Grade Edge to Your Core Bond Portfolio