---
title: Cross-Asset Trend Factor for Bonds
url: https://www.ml-quant.com/papers/ssrn/5181153/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5181153
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5181153
featured: 2025-03-20
citations: unknown
topic: Macro-Finance & Rates
---


# Cross-Asset Trend Factor for Bonds

XTREND, a proposed cross-asset trend factor, uses machine learning to predict corporate bond returns using equity market data, showing resilience in various market conditions.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5181153
- Identifier: SSRN 5181153
- Released: 2025-03-16
- First featured: Quant Letter No. 89 (2025-03-20): https://www.ml-quant.com/issues/2025-03-20/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Macro-Finance & Rates

## Related

- [Supervised Similarity for High-Yield Corporate Bonds with Quantum Cognition Machine Learning](https://www.ml-quant.com/papers/arxiv/2502.01495/): The research applies quantum cognition machine learning to distance metric learning in corporate bond markets, outperforming traditional models in high-yield markets and performing similarly or better in investment grade markets.
- [Corporate Bond Factors: Replication Failures and a New Framework](https://www.ml-quant.com/papers/ssrn/4586652/): The study criticizes inconsistent methodologies in corporate bond factors literature, suggesting a robust factor construction and a clean database for corporate bond returns.
- [Deep Learning for Corporate Bonds](https://www.ml-quant.com/papers/ssrn/4527372/): A U.S. corporate bonds market asset pricing model shows that maximizing the Sharpe ratio performs better for individual bonds, with significant excess returns shown in out-of-sample annual SDF portfolio Sharpe ratios.
- [Index Effect in Corporate Bonds](https://www.ml-quant.com/papers/ssrn/5181327/): Investment funds' rise in the corporate bond market has led to more index-driven bond trading, improving liquidity during index closing times.
- [ESG Controversies in Strategies](https://www.ml-quant.com/papers/ssrn/5189713/): The research incorporates ESG controversy data into equity and corporate bond strategies, suggesting that shorting ESG-controversial firms improves risk-adjusted returns and lowers ESG risk.
- [Forecasting Corporate Bond Index Returns](https://www.ml-quant.com/papers/ssrn/5116120/): The research explores the return predictability of U.S. corporate bond indexes, identifying key predictors and potential economic benefits for investors.