Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

This article originally appeared on ETF.COM here.

Since Eugene Fama and Kenneth French’s 1992 publication of the paper “The Cross-Section of Expected Stock Returns,” factor-based (style) investing has been applied in equity markets. Not only has it become increasingly popular, with massive flows into “smart beta” products, it has also been extended to long/short, market-neutral applications and across bonds, currencies and commodities.

Despite style investing’s popularity, comparatively little has appeared in the literature, or been put into practice by publicly available funds, as it relates to the enormous bond markets.

Jordan Brooks, Diogo Palhares and Scott Richardson of AQR Capital Management add to our understanding in this area with the study “Style Investing in Fixed Income,” which will appear in a forthcoming issue of the Journal of Portfolio Management. They applied the value, momentum, carry and defensive style premiums to country and maturity selection across global government bond markets and to individual issuer selection across U.S. investment-grade and high-yield corporate credits.