In our exclusive video from PA Congress UK 2014, Amanda Stitt, head of fixed income and product specialist at Legg Mason, explains to Gary Shepherd why the Western Asset Macro Opportunities Bond Fund has increased its allocation to emerging market debt on the re-pricing of markets.
Stitt also talks about the misconception that it is necessarily bad news for bonds because fixed interest rates are going to increase.
She believes it is only a problem if there is a shock move and markets are re-prices aggressively, while any yield curve reshaping presents great alpha opportunities.
