Kames' Buckle: Recovery in credit took me by surprise

The sharp rally in credit markets following the sell-off caused by the Federal Reserve's tapering talks was a surprise and a cause for concern for Iain Buckle, fixed income fund manager at Kames Capital.

"Not for the first time, my crystal ball let me down," Buckle (pictured) said. "The market's quick recovery from the tapering carnage of June definitely took me by surprise. "I expected some recovery in gilts given the outlook for our domestic policy, but I certainly did not think credit assets would return to such elevated levels so soon." After a strong sell-off in June, corporate bonds have experienced a significant rally, with spreads in some investment grade credit sectors narrowing to the tightest levels so far this year. Buckle, who co-manages the Kames Sterling Corporate Bo...