Welcome to Thoughts in the Market.

I'm Andrew Sheets, Chief Cross-Assist Stragist for Morgan Stanley.

And I'm Bishi Tripitore, Head of Fixed Income Research at Mogastani.

And on this special edition of the podcast, we'll be talking about factor investing strategies

and liquidity in corporate credit markets.

It's Thursday, August 26th at 3pm in London.

And 10am in New York.

So Bishi, before we start talking about factor investing in credit, we should probably

talk about what is factor investing and why are we talking about it.

So what is this concept and why is it important?

Factor investing whose intellectual roots are from a seminal paper from two University

of Chicago professors in the early 90s using Pharma and Ken French, effectively is a way

of identifying companies to invest using rules-based systematic investing strategies, be it identifying

quality, identifying value, identifying momentum or volatility or risk adjusted carry,

a bunch of these strategies involve setting up a set of rules and systematically in following

those rules to build a portfolio.

And we've seen that these strategies in the context of equities have substantially outperformed

more discretionary strategies.

So you can kind of think about it as the moneyball approach to investing, that you think over

time doing certain types of things in certain situations over and over again, systematically,

is going to ultimately deliver a better, long-run result.

Exactly right.

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