Featured Insights


Chart of the Week

BONDS: REACHING FOR YIELD? LOOK TO RETURN

Source: Bloomberg and Legg Mason, Jan 18, 2018. Past performance is no guarantee of future results. Indexes are unmanaged, and not available for direct investment. Index returns do not include fees or sales charges. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment.

Market Snapshot

U.S. Jobs Chasing Workers?

For unemployment claims, the devil was in the details; Global oil looked to offer its own cure for high crude prices; China growth beat expectations


Featured Insights

Market Outlook
Dec 26
Market Outlook

Finding opportunities

The Year Ahead in Credit

December 26, 2017

Where does our head of global credit see opportunity next year? Gary Herbert joins Brian Giuliano to discuss global credit markets, opportunities and risks for 2018.

Investment Insights
Dec 18
Investment Insights

Yellen and the Yield Curve

December 18, 2017

It seems as if the Federal Reserve’s reaction function may be shifting from a theory—the Phillips Curve, that lately has not been well supported by the facts—to a rule, which is based on something that can’t be seen: r-star(R*), the Wicksellian natural or neutral real interest rate.

Investment Insights
Dec 11
Investment Insights

Not Out of the Woods...Yet

December 11, 2017

Sentiment toward the U.K. has been mired in contrasting views of the ultimate outcome of the Brexit negotiations. But even with the uncertainty, the U.K. has avoided a recession and the currency appears to be mustering some strength. Is it still possible to be constructive on the U.K.?

Investment Insights
Nov 28
Investment Insights

Emerging Markets: Dangerous? Or Just Like the Rest?

November 28, 2017

Questioning the idea that emerging markets are inherently more dangerous than developed markets.

Investment Insights
Oct 26
Investment Insights

Fixed income

Are there still opportunities in global high yield?

October 26, 2017

The synchronized recovery in global earnings finally appears to be here. Every major market region in the world is now seeing significant earnings growth. We think ultra-accommodative monetary policy can now be dialled back in major developed market economies over the next year.

Investment Insights
Oct 02
Investment Insights

Around the Curve

Can Emerging Markets Hold Steady?

October 02, 2017

Emerging Markets (EM) have been one of the better performing asset classes this year. Is it time to question whether EMs will continue to provide a return on capital for investors?

Investment Insights
Sep 11
Investment Insights

Has the Phillips Curve Flattened?

September 11, 2017

Is the Fed's action the final nail in the coffin for the Phillips Curve, the model that describes the relationship between rates of unemployment and rates of inflation in an economy? We are not quite ready to throw in the towel on this theory.

Investment Insights
Aug 31
Investment Insights

Around the Curve

A Yen for the yen?

August 31, 2017

Japan has been pumping out some relatively spectacular growth numbers this year. Yet, the modest upward trajectory of the yen has been underwhelming. What’s the story? And is this growth a flash in the pan or a whiff of something different coming out of Japan?

Investment Insights
Aug 15
Investment Insights

Around the Curve

Synchronized Earnings Growth and Leveraged Finance Markets

August 15, 2017

The synchronized recovery in global earnings finally appears to be here. Every major market region in the world is now seeing significant earnings growth. Are there still opportunities in global high yield?

Investment Insights
Aug 09
Investment Insights

Around the Curve

Bridges Freeze Before Roads: Go Slow

August 09, 2017

In a way, the Fed was a key first responder to the global financial crisis (GFC). And now, it’s going to be the first major central bank to pursue quantitative tightening (QT), the more uncertain leg of its great “monetary policy experiment.”

Investment Insights
Jun 28
Investment Insights

Around The Curve

Breaking Argentina’s Default Cycle

June 28, 2017

Investments in Argentine debt have performed well over the past year as the macroeconomic policy mix shifts in the right direction. However, given the sovereign’s history of frequent defaults, we and other market participants understandably spend a lot of time thinking about what could go wrong.

Market Outlook
Jun 19
Market Outlook

Around The Curve

The Contradiction of Shale

June 19, 2017

“Black gold,” like the precious metal it borrows its nickname from, has caused investors a lot of pain in the past decade. But whereas the precious metal no longer impacts the world economy like it once did, oil prices dramatically impact consumer behavior, employment, and the budgets and fortunes of many nations. It can even impact industries far beyond energy, from autos to airlines, and chemicals to utilities. Very few people saw the collapse in oil from $100 to sub-$30, many didn’t foresee the rise back to $50, and the market has much more fear than conviction in the next move.

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