skycfa

A manager may chose 2 or 3 bonds with different maturity and credit quality. How would you compare 2 such managers , if you don't want to study credit guality choices?

Choose default free i.e. treasury securities of similar maturities as each manager's choice. Rank the returns of the particular combination of each set of treasuries.

Thus you're selecting managers with good prediction capabilities on yield curve positioning, and excluding spread differences due to credit quality.