Investment Grade: Crossover Market Duration

Our market duration crossover strategy focuses on investments in corporate bonds with ratings ranging from A to B. Whilst allocating to both investment grade and high yield, the strategy generally seeks to maintain an average investment grade rating at all times in a full duration framework.

The strategy aims to generate, in our opinion, attractive risk-adjusted returns and achieve capital preservation. This is sought through prudent allocation between investment grade bonds, which tend to be more correlated to interest rates and high yield rated bonds, which tend to be more correlated to equity markets. Active allocations can also made geographically diversified by sector.