Investor Knowledge
July 17 2024

Buy-and-Maintain Credit Strategies for Better Long-term Outcomes

10 min read

Frédéric Kibrité
Vice President and Director, ALM Portfolio Management, TD Asset Management Inc.

Dennis Woessner
Vice President and Director, U.S. Fixed Income, Epoch Investment Partners, Inc.

Curtis Schimmelmann
Vice President, ALM Portfolio Management, TD Asset Management Inc.

Marisa Jones
Vice President and Director, Investment Grade Credit Research, TD Asset Management Inc.

The incremental risk-adjusted returns delivered by corporate bonds, which are typically higher than government bond returns, can often be an important source of compensation for investors. When seeking this compensation, a skilled manager should employ independent credit research, active security selection, active sector diversification and an ongoing portfolio maintenance. This type of management is often referred to as buy-and-maintain investing.