COVID-19’s sudden impact on the market for office space could spark unanticipated changes longer-term.
Medical background and market impact
We believe investment-grade debt could lead the credit markets in the early stage of recovery, with the Fed and ECB providing policy backstops if necessary.
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.
How U.S. and overseas investment-grade corporate bonds benefit from increasingly negative government bond yields.
Investment grade outlook
The dynamics of supply and demand continue to favor investment-grade U.S. bonds.
Chart of the Week
Chart inspired by QS Investors. Source: Bloomberg, as of 5/26/20. RHS = Right hand scale. LHS = Left hand scale. 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.
Chart of the Week
The collapse in oil prices has added to market dislocations and uncertainty associated with the coronavirus pandemic.
What states need to survive these challenging economic times.
With the future uncertain and concern about drawdown risk elevated, credit's defensive characteristics are increasingly important to allocation decisions.
After a dramatic policy response to COVID-19, what's next for Italy's economy and bond markets?
Western Asset examines recent trends in the muni bond market and provides its outlook about conditions ahead.
U.S. banks are arguably better positioned to handle a severe economic crisis now than at any other time in their history.
The Fed is far from done with its response to the immediate concerns confronting the economy.
What the latest actions taken by the European Central Bank mean for European market liquidity.
Market-traded or so-called breakeven inflation has collapsed globally, creating potential opportunities in certain global inflation-linked markets.
The new OPEC+ deal to cut production should help stabilize the oil market, but it's far from clear when the slump in global demand may reverse.
COVID-19 EM update
While EM economies have unique exposure to both COVID-19 and the oil price crash, we still see value in the higher quality part of the market.
The recent economic response package in Europe falls short of “true” fiscal solidarity, but a limited, jointly financed Recovery Fund could go a long way to help.
The epicenter of the economy’s current plunge will be the "leisure" sectors: travel, accommodation, recreation, and food services.
The Fed's moves to address liquidity issues in the Treasury market appear to be having the intended effect -- but pockets of concern remain.
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