Active management of credit more effective over the longer term than a target-seeking strategy
John Sorrell, Head of Credit
Duration: Approx 4 minutes
Active management of the exposure to credit can substantially improve performance but a sole focus on a targeted level of outperformance may not be the best strategy. In fact, over the long term, following a mean reverting strategy will deliver better returns than managing credit in pursuit of a target level of outperformance.