Hi, I need some explanation for this - I would buy !!! " When the widening of spread is in the forecast, the manager wants to reduce the weight of that sector to minimize the impact of increase in interest rates -falling prices " Tx
you would buy - i would sell to you. widen spreads in the future means that your current holdings will decrease in price should the forecast become reality. you don’t want to hold an asset whose price declines in value.
Right, in this example you are ALREADY holding the position so you want to get out before the increase in spread. If you are not holding it, you would want to buy once the spread increases.