Managers urged to be very cautious over credit ratings
Credit risk must be viewed in its entirety with ratings one of many inputs
The ‘rosy‘ recovery scenario painted in global economies did not help relative value fixed income trades in October, indeed produced ‘very poor‘ results from this portion of fixed income portfolios, according to Eric Debonnet, manager of Equalt‘s Fixed Income Arbitrage fund.
The manager says curvature positions, arbitraging anomalies in the shape of the yield curve, were the fund‘s main losers in October, with cross-border trades proving the most profitable.
Debonnet‘s fund held ‘very
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