Dispersion predicted in fixed income returns

Managers disagree on diversification benefits of fixed income absolute return

Behind the curve

Bechara Azar, senior analyst and Ramez Chalhoub, managing director, business development and investor relations, InnocapLast May, interest rates rose as a reaction to the US Federal Reserve announcement of quantitative easing tapering. The market was caught by surprise, which resulted in a steepening of the credit curve. Since then, the Fed calmed the market by clearly communicating its plan and provided comfort that despite a continuous taper, it will stay on a more doveish course. Since the