All the Credit Credit Markets in Transition: Systematic Strategies
Jul 22, 2025
Tyler Thorn, a Multi-Sector Portfolio Manager known for his expertise in systematic strategies, shares insights into the evolving landscape of credit markets. He discusses the synergy between fundamental analysis and algorithmic trading, highlighting how data-driven approaches can enhance decision-making. Thorn also delves into the transformative role of AI in streamlining investment processes, while addressing the complexities of the fixed income market. Listeners will discover how diversification and navigating liquidity challenges can create new opportunities for active investment strategies.
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Essence of Systematic Investing
- Systematic investing is fundamentally rule-based and can range from macro to micro levels with different trade frequencies.
- The more frequently you trade, the less fundamental thesis is needed; high-frequency focuses on speed and data.
Systematic Strategies Mirror Fundamentals
- Systematic strategies replicate fundamental views by codifying analysts' thought processes into rules.
- Rules-based strategies enable extensive backtesting and disciplined decision-making without emotional interference.
High Bar for Strategy Testing
- Only test strategies with a strong fundamental thesis and high statistical significance.
- Seek ancillary evidence for trades beyond just returns to increase confidence in their validity.