While Nationwide, an investment-grade borrower, found favor with investors, many asset managers are adopting a case-by-case approach to subordinated debt, rather than rushing to buy as they look for yield at a time when interest rates are ultralow.
This mathematical approach to investing led to the famed Capital Asset Pricing Model by Sharpe, Lintner, and Black, the Option Pricing Model by Black and Scholes, and other important theories.