Opportunistic Bond Investing With CRDT: Less 'Fixed,' More 'Income'

Summary

• In contrast to many bond funds that maintain fairly static or fixed positions that mimic their benchmarks, CRDT aims to invest where there is value. In so doing, it seeks to generate income and return and can play a pivotal role as part of a well-diversified overall portfolio.
• CRDT employs a quantitative approach for monitoring relationships between sectors, issuers, and securities. The goal is to identify mispricings where payoff profiles are highly asymmetric.
• CRDT aims to exploit market inefficiencies in the valuation of complex and difficult-to-model securities.

Dzmitry Skazau

Introduction

Investors in recent years may be justified in wondering whether their fixed income allocations are worthwhile. In contrast to the stout returns leading up to the pandemic, more recent results have seemed lackluster. Moreover, the diversification benefit ascribed to the