We describe a way of selecting corporate bonds that will produce better performance than the market as a whole. This research has many similarities with the well-investigated field of factor based stock selection strategies. The variables that prove to have forecasting power are Bond momentum,...

This article presents a framework for allocating partial tracking errors to investment decisions in order to maximize the expected information ratio of an actively managed portfolio. The tracking error allocation framework is a three–step process: 1) identifying the independent investment...