The Race to Bring Quantitative Strategies To Corporate Bond Markets
Systematic credit remains a small slice of the fixed-income investment arena, but advances in electronic trading and the proliferation of data are speeding its growth.
Quantitative investing strategies that use computer models to crunch data and build portfolios are old news in stock investing. But only a handful of investment managers run corporate bond portfolios in similar ways.
Data on the size of the systematic credit industry is hard to pin down, with estimates ranging from 1% to 2% of the overall actively managed credit funds. (That compares with 20% or more on the equities side.) Barclays Plc research put total assets at $90 billion to $140 billion in 2024, but it hasn’t publicly updated that estimate since then.