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May 21, 2019 / Fund Research Research Alliance
The size of a corporate issuer, measured by its amount of debt outstanding, affects the spread and performance of its bonds. In this Strategy Insight, we show that small issuers trade at wider spreads than their large counterparts, and that portfolios of small issuers tend to outperform portfolios of large issuers, rendering small issuers a potential source of value.
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