Assessing Credit Risk in Mixed-Asset Portfolios

Consider a portfolio manager overseeing a mixed-asset portfolio that includes equities, fixed income, and alternative investments. Recently, the manager has identified increasing concerns regarding the creditworthiness of certain issuers in the high-yield bond sector due to economic downturns. The manager must assess the potential impact of credit risk on the portfolio's overall performance and consider measures to mitigate this risk.

In your response, discuss the key factors the portfolio manager should consider when evaluating credit risk and recommend specific strategies for managing this risk within the portfolio. Support your recommendations with relevant examples or frameworks.