Featured Insights


Chart of the Week

Source: Bloomberg. Yields as of 7/28/16; 5yr correlations as of 6/30/16. Past performance is no guarantee of future results. An investor cannot invest directly in an index. Unmanaged index returns do not reflect any fees, expenses or sales charges. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment.

Fixed Income: The Risk of Safety

US Treasuries could entail greater embedded risks than many realize, which is why investors should consider unconstrained bond strategies.

Market Snapshot

US GDP: The angel's in the details

Look behind the headlines

The disappointing headline GDP for 2Q masked underlying consumer and industrial strength; look for upward revisions in subsequent estimates. Meanwhile, the Bank of Japan held back on further stimulus, perhaps pinning hopes on fiscal expansion. In Europe lending is finally picking up; is growth around the corner?


Insights

Market Snapshot
Jul 29

Look behind the headlines

US GDP: The angel's in the details

The disappointing headline GDP for 2Q masked underlying consumer and industrial strength; look for upward revisions in subsequent estimates. Meanwhile, the Bank of Japan held back on further stimulus, perhaps pinning hopes on fiscal expansion. In Europe lending is finally picking up; is growth around the corner?

Market Outlook
Jul 29

Brandywine Global quarterly letter

An upturn in growth ahead?

Economic data improved during the second quarter mainly due to gains in the developing world. We believe nominal growth stopped slowing prior to the “Brexit” vote, an event that coincided with an elevator drop lower in the structure of global interest rates. The scale of the deflationary shock emanating from Brexit does not justify the scale of the rally in safe-haven bonds.

Market Outlook
Jul 27

Mid-Week Bond Update

No helicopter ride for Japan

Further monetary easing or prospects of such in Europe and Japan lifted traditional risk assets over the past five trading days, especially Asian and European High Yield bonds. Japan unveiled yesterday a 28 trillion yen (US$265bn) stimulus package to bolster its ailing economy. The measures, however, fell short of some investors’ expectations of a so-called “helicopter money” policy, or the direct handing of cash to businesses and consumers. Global sovereign bonds underperformed their corporate peers, led by the US, where improving economic data pushed up expectations of a rate hike, sending Treasury prices lower.

Investment Insights
Jul 26

Municipal Market Update: June

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

Market Snapshot
Jul 22

So far, so good

US growth: Summer sizzle

The US economy is having a solid summer so far; with a dovish Fed, more growth may need new tools. Meanwhile, Europe is feeling the first impact of the Brexit vote; China's currency continues to play a supporting role in global trade.

Investment Insights
Jul 21

Volatility: Here Today, Gone Tomorrow

Volatility is an inevitable part of investing and when markets get bumpy opportunities can emerge for patient, value-oriented investors.

Market Outlook
Jul 21

A Powerful Backdrop For Credit

Western Asset continues to be cautiously optimistic that global growth will hold up, but is cognizant that Brexit has introduced new uncertainties. Western’s central theme remains that favorable valuations, strong fundamentals and reasonable growth are a powerful backdrop for credit.

Investment Insights
Jul 19

For your consideration

Five Reasons to Like U.S. Stocks Now

There's no shortage of anxiety in today's financial markets – whether it's geopolitics, valuation, or unprecedented global central bank policies. But where there's doubt, there can be opportunity. These five factors are worth considering for stocks in the U.S.:

Market Outlook
Jul 18

Munis Shine in 2Q16

Municipal bonds outperformed their taxable counterparts in the second quarter and Western Asset still has a somewhat optimistic outlook for the sector going forward.

Market Snapshot
Jul 15

Wallets at the ready

US consumers to the rescue?

Slow, steady growth spread to the consumer sector in June, with retail sales perking up right along with consumer prices. Meanwhile, Japan's election gave Shinzo Abe a historically free hand for reform, both economic and military, and China growth showed the benefits of government support.

Market Snapshot
Jul 08

US jobs: Risk-on, but for how long?

Friday’s jobs report cheered markets; good news was perceived as good news, given broad-based belief in a still-dovish Fed. Meanwhile, the three-way tug-of-war between Italy's central bank, a preoccupied ECB and a regional Italian bank continued.

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