Evaluating Credit Strategies for Conservative Fixed Income Portfolios

As a fixed income portfolio manager, you are tasked with evaluating various credit strategies to enhance portfolio returns while managing risk. Your client has a conservative investment profile and is concerned about potential credit defaults.

Describe the key credit strategies you would consider in constructing a fixed income portfolio for this client. In your response, discuss the relative merits and risks of at least two credit strategies, ensuring to address how these strategies align with the client's risk tolerance and return objectives.