Experience Stern | News & Events

Excerpt from CFA Institute blog -- "In another volatility study by a trio of researchers from the New York University Stern School of Business and Morgan Stanley, which assessed distressed corporate bond portfolios, the authors concluded that investors are better off using a buy-and-hold strategy and investing in low-volatility distressed securities. When the portfolios are updated continuously as securities become distressed, the lowest-volatility portfolio outperforms because of lower default rates and higher terminal values. In theory, new data are absorbed by all markets simultaneously and incorporated into asset prices immediately."

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