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TD's avatar

I'd be interested in a post on your credit research approach. You shared here how you partially analyze the macro. How about the micro?!?!

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Credit From Macro to Micro's avatar

Basically my focus on credit (where my job started) was always based on a fusion of top to bottom-up

Chosing the beta (macro), the sector rotation and at the end the name analysis.

Btw It is my intention making a piece about that (what are the voice of BS, IS and CF that I look usually).

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Jun 2, 2024
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Credit From Macro to Micro's avatar

That One above Is not me.. don’t message other people and signal him

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Adrian Knoblauch's avatar

awesome, appreciate

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Adrian Knoblauch's avatar

Great! Learned a lot for Rates. You have a similar framework for corp RV that you’re willing to share? Appreciate your open work! Thanks

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Credit_junk's avatar

For corporate I have a fusione approach (from macro to micro).

1 choice of the beta to use and of asset classes (senior, sub, rating, etc)

2 sector choices (similar ranking style here)

3 relative value for each sector using fundamentals and valuation

In the next week I ll share something about this

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Adrian Knoblauch's avatar

Great! Looking very much forward to this too!

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FXMacroGuy's avatar

Very interesting, thanks for sharing! How often do you update it?

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Credit_junk's avatar

The data are all on a daily base (so you can look at it every day). In the version with back test it is on a monthly base.

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Mario's avatar

Very interesting, and I recognize a lot from research/academic papers. Are you willing to share your backtests results?

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Credit From Macro to Micro's avatar

Hi Marten, yes there is some acadamic and some sell-side research inside. True.

I don't adjust my backtest since 2021 to be honest so I can share it immediately (if I have time I can update the piece).

The scope of the piece was to show some of the driver of the market and while not to be used systematically for trading, I prefer to have a systematic process.

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