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Investors Deserve A Peek At Bond Managers’ Tricks

FYI: Active bond managers have dazzled investors by outpacing the bond market in recent years. But it’s a simple sleight of hand, and the big reveal is coming.

The trick is that bond managers have been quietly loading up on low-quality bonds. They pay a higher yield than top-quality ones to compensate for their greater risk of default — in technical parlance, a credit premium.
Regards,
Ted
https://www.bloomberg.com/opinion/articles/2018-12-04/investors-deserve-a-peek-at-bond-managers-tricks
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