Q4 Market and Strategy Update
With core inflation below even our more dovish estimates, we expect global growth to remain low by historical standards -- but also resilient.
Western Asset examines recent trends in the muni bond market and provides its outlook about conditions ahead.
Throughout the bumpy ride of Q3 2018, we maintained our convictions with an overall bullish bias which turned out to be justified in the rapid reversal that followed. We think the macro backdrop is supportive of the credit cycle; while long by historical standards, we believe it will endure.
Q3 2019 Market Commentary
Despite drastic changes in the investment backdrop, short-term pessimism about growth is overdone and higher rates are likely only in the distant future.
3Q 2019 Market & Strategy Update
The Fed and other central banks have started focusing on core inflation outcomes - a decisive policy shift which suggests that rates will be "low for longer" than previously expected.
Chart of the Week
Chart courtesy of Brandywine Global. Source: Bloomberg, as of 11/12/2019. Past performance is no guarantee of future results. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment.
Chart of the Week
Current market uncertainties are generating potential opportunities for income investors.
LIBOR, one of world's most widely used financial benchmarks, is being phased out -- but what will replace it? Western Asset examines the consequences and impact for investors.
How U.S. and overseas investment-grade corporate bonds benefit from increasingly negative government bond yields.
Current market conditions make the shorter end of the maturity curve potentially attractive from a risk/reward point of view.
A changing reaction function
The Fed is becoming more focused on realized inflation and growth, and should remain accommodative even if global growth turns out to be more resilient than currently believed.
Why Western Asset believes the current positive phase of the credit cycle will likely continue.
There's reason and room for more rate cuts ahead, but it's unclear if that includes September.
Commercial Real Estate Finance
These real-estate loan securities are growing in number, requiring strong, fundamentals-based analysis.
As threatening as natural disasters can be, their impact on the municipal bond market remains fairly muted.
Focus on the Economy
Despite widespread worries about the yield curve, what we've seen recently is not a true inversion. But preventing that from occurring is one reason the Fed could move to lower rates later this year.
Understanding the causes
What's behind the persistently low inflation that could drive the Fed to cut rates this year? A host of factors suggest the Fed's 2% target for inflation is overly optimistic.
June Meeting Analysis
Wednesday's Fed statement makes a rate cut in July the base case for investors, with a 25-basis-point move most likely.
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