Flatter fixed-income returns lie ahead, predicts Pimco

"Those running money today must be positioned for an environment with greater potential for extreme events in terms of risk aversion than they have seen in the past," says Emanuele Ravano, Pimco's London managing director. "The consequence must be a flatter distribution of returns." Ravano has been shifting both the composition and the structural principles of its bond strategies in recent months to align with a macroeconomic outlook of informed pessimism, underpinned by three defini…