Paul Benson, Head of Systematic Fixed Income at Insight Investment, joins hosts Shankar Ramakrishnan and Bruce Clark of IGM to discuss recent high-yield market turbulence amid rising Treasury yields and risk aversion, and why “high yield is back” after years of low rates.

Benson explains systematic (quantitative) fixed income as model-driven investing that reduces discretionary, emotion-led decisions and seeks alpha through cross-sectional dispersion across large bond universes. He argues today’s spreads and default expectations are often misunderstood in diversified indices, citing post-GFC rolling default rates and recovery rates that imply lower loss given default versus compensation from spreads, alongside improved issuer quality and reduced liquidity premia due to ETFs and portfolio trading.

The conversation also covers rate uncertainty, issuance dynamics, carry and pull-to-par, and career advice emphasizing curiosity, problem-solving, competitiveness, and critical thinking with AI.

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