Future Finance
The New Quant Billions Are Hiding in the Bond Market
- Northern Trust touts fixed-income factors amid stock fatigue
- Identifying credit behavior like feeling ‘breeze in hurricane’
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For all his years preaching to a world of finance where quant investing is a religion, Patrick Houweling inspired few believers. Suddenly, he’s got a flock.
Hedge funds, investment banks and sovereign wealth funds are racing to discover the next big thing in fixed income. In so doing, they’re heeding the counsel of the soft-spoken Robeco manager whose 2014 paper is a touchstone for quants channeling the boom in factor investing that’s taken over stocks.