Assessing and Mitigating Credit Risk in a Corporate Bond Portfolio

Mason Capital is evaluating its investment strategy in light of increasing credit risks from various sectors. As a portfolio manager at Mason Capital, you have been assigned to assess the credit risk related to a large corporate bond portfolio that includes issuers from the energy and technology sectors. Your task is to explain the key factors influencing credit risk assessment and outline at least three risk mitigation strategies that can be employed to manage credit risk effectively.

In your response, be sure to discuss the implications of macroeconomic factors, issuer-specific credit factors, and the importance of credit ratings in your analysis.