Underestimating Risk Is at the Heart of the ‘Missing Credit Premium’ – ValueWalk Premium

Underestimating Risk Is at the Heart of the ‘Missing Credit Premium’

Newfound Research is posing a profound question: Are investors notoriously poor predictors who consistently underestimate risk? The Boston firm issued a research note April 3 titled, “The Curious Case of the Missing Credit Premium.” In the note, Corey Hoffstein, the firm’s chief investment officer, and portfolio manager Justin Sibears compared returns on investment grade corporate bonds versus U.S. Treasuries, and came up with the following two findings:

  • Over the past 15 years, the investment grade corporate bonds delivered little-to-no excess returns . . .

    SORRY!

    This content is exclusively for paying members.

    If you are subscribed and having an account error please clear cache and cookies if that does not work email support@valuewalk.com or click chat.


X
Saved Articles

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

What’s missing today for many investors is real, straightforward advice.

Especially when it comes to Value Investing and Hedge Funds. 💵

That’s what makes ValueWalk Premium different. Some would say we’re “unusual.”

Our subscribers look forward to clear, easy-to-understand information they can act on.

Sign up for  today for only a few dollars a day and get a 3 day no obligation trial with a targeted 20% discount coupon code.

Cancel anytime during trial and you are never charged.

Limited time offer: For first 50 subscribers

0