Smart Beta for Corporate Bonds: Efficient Access to Premium Returns

Journal of Indexes, June 26, 2014

10 Pages Posted: 8 Feb 2017

Date Written: June 1, 2014

Abstract

Smart beta corporate bond indices potentially offer a better risk/return profile than traditional market-value-weighted benchmarks. The simulated fundamentally weighted index described in this paper tilts toward less risky issuers, and periodically rebalancing to target weights provides a source of excess return by taking advantage of mean reversion in bond spreads.

Suggested Citation

Shepherd, Shane D., Smart Beta for Corporate Bonds: Efficient Access to Premium Returns (June 1, 2014). Journal of Indexes, June 26, 2014, Available at SSRN: https://ssrn.com/abstract=2913227

Shane D. Shepherd (Contact Author)

Research Affiliates, LLC ( email )

620 Newport Center Drive
Suite 900
Newport Beach, CA 92660
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
79
Abstract Views
370
rank
437,212
PlumX Metrics