Quants pitch strategies for when bonds no longer work

Investors are flocking to alternative diversifiers of equity risk

For institutional investors, the language of diversification is changing.

The classic 60/40 rule and voguish ‘all weather’ portfolios of alternative risk premia are giving way to less familiar terms: statistical hedging, outcome-oriented strategies and the defensive frontier.

This is how quants describe strategies designed to replace bonds as a diversifier in portfolios. The common goal is to offset growing exposure to equity risk but without the negative carry of costly derivatives hedges.

I

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: