# Prof. Edward Altman's research on corporate bond portfolios is highlighted

1 Faculty News August 6, 2014 ![CFA Institute blog logo](/sites/default/files/styles/246w/public/assets/images/con_032856.jpg?itok=V-VlUDNY)>

Excerpt from [CFA Institute blog](http://blogs.cfainstitute.org/investor/2014/08/06/record-low-rates-and-volatility-muddle-models-2/) -- "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."

[Read more](http://blogs.cfainstitute.org/investor/2014/08/06/record-low-rates-and-volatility-muddle-models-2/)