Inflation: Baffling the Fed

No rate hike as the Fed struggles to explain persistent low inflation; S&P reacts to China's debt load; Canada's hot streak continues, but with question marks.

Unconstrained investing

Western Asset: pioneers since the 1990s

Unconstrained investing, one of the latest buzzwords in asset management, means nothing more than being flexible in one’s investment universe and approach in order to deliver the objectives that clients set. For some investors, the use of sophisticated tools to profit in both up and down markets may be new - but for Western Asset, this approach is business as usual. Read about how it all started - and how you can profit from this strategy today.

In Conversation...

The What, Why and How of active ESG integration

David Sheasby, Head of Stewardship & ESG at Martin Currie, discusses the merits of integrating environmental, social and governance (ESG) factors into investment decisions.

Mid-Week Bond Update

High Yield - bringing up baby?

US and European High Yield indices survived a general fixed income sell-off week, triggered by prospects of higher interest rates on both sides of the Atlantic. This resilience reflected the asset class’ increasing maturity and quality as well as a recently rising correlation...

Central Bank Watch

The Great Unwind Begins

The U.S. Federal Reserve (Fed) left its target rate unchanged, as was widely expected. But the bigger news is the beginning, in October, of the Great Balance Sheet Unwind, as the Fed moves toward policy normalization. Read on for insights from our Portfolio Managers:

ESG: Driving Better Investment Outcomes

CEO and CO-CIO Chris Clark and Director of Risk Management Gunjan Banati discuss the significance of incorporating Environmental, Social, and Governance Factors into Royce's investment process.

Above the Noise

EM and the Fintech Edge

Buzzwords tend to fizzle out as quickly as they come into fashion. But one concept has gained significant importance for emerging markets (EM) in recent years.

Above The Noise

Days numbered for the internal combustion engine?

Technological progress and broader pressure to deal with pollution – climate change – are rapidly conspiring against the internal combustion engine (ICE).

Fed Week: The Great Balance Sheet Unwind?

All eyes are on Wednesday’s FOMC meeting, watching for clues on the details – and speed – of the Fed’s plans for its balance sheet; French labor unrest finally begins; Austria issues its first century bonds.

Mid-Week Bond Update

EMs from (ugly) duckling to darling

Traditionally riskier parts of the bond universe, such Emerging Markets (EM) and High Yield, rallied over the past five trading days as geopolitical concerns eased, the aftermath of the recent US floods started to settle and as Europe and China continued to post positive data. EMs extended their year-to-date gains as local currencies gained and the asset class’ volatility continued to fall, just the opposite...

Municipal Market Update: August

Western Asset examines recent trends in the muni bond market and provides its outlook about conditions ahead.

Has the Phillips Curve Flattened?

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.

How Could Small-Caps Surprise?

Co-CIO Francis Gannon discusses the ongoing consolidation in small-caps, while also touching on earnings, valuations, and the prospects of a pick-up in volatility.

The Fed in September: Eye of the storm?

The need for ready cash for disaster relief could factor into the Fed’s next move; The European Central Bank (ECB) sets a timeline; currencies grab the headlines; UK jobs boom raises Brexit issues.

Income

Time to switch gears?

After a decade of easy money meeting the cost of living has become increasingly challenging as yields on traditional income-generating assets have fallen and inflation has picked up. Investors have increasingly had to take on more risk to get less return. However, as the environment begins to shift, bringing with it the prospect of increased volatility and inflation, the role of income-generating assets will become increasingly important.