Th e following was reported in the “Strategies” section of the January 3, 2000 issue of BondWeek (“. . . Even as Wright Moves Down.” p. 10):

Wright Investors Services plans to buy triple B-rated corporate paper in the industrial sector and sell higher rated corporate paper on the view that stronger-than-anticipated economic growth will allay corporate bond investor fears.

In the article, the following was noted about the portfolio manager’s view:

spreads on higher rated investment grade paper already have come in some from last summer’s wides, but he believes concerns over year-end and rising rates have kept investors from buying lower rated corporate paper, keeping spreads relatively wide.

Discuss the motivation for this strategy and the underlying assumptions.