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.

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...

Mid-Week Bond Update

The sanctioned five

Most global Fixed Income markets rallied over the past five trading days as geopolitical tension around North Korea’s nuclear programme intensified: US president Trump threatened to sanction any country trading with the Asian nation - a list that includes China -, while already-sanctioned Russia warned against the effectiveness of economic punishment. The already-sanctioned list also includes Syria, Iran and Qatar, whose conflicts remain unsolved. The rising tension sank US Treasury yields...

Emerging Markets Insights

China: What to Expect in the Next Six Months

In light of concerns over China’s rising leverage, yuan stability, capital outflows and risks to emerging economies, Western Asset’s Portfolio Manager and Head of Investment Management, Asia (ex-Japan) Desmond Soon shares what we can expect from China’s financial markets in the next six months. He goes into detail about why we think a debt crisis in China is not likely, the safeguards in place to help ensure financial stability and the steps China is taking to encourage more foreign investments to conclude that China’s fixed-income market continues to be an attractive option for global bond investors. READ MORE.

Mid-Week Bond Update

Missiles, floods, lift bonds

Natural and not-so natural disasters, including storms and a North Korean missile flying over Japan, lifted demand for government bonds, especially those with the longest maturities. UK inflation-linked debt and US Treasuries maturing in more than 25 years outperformed...

ESG: GAINING TRACTION

No longer simply a niche strategy, ESG is evolving into a fundamental tool that can help active managers identify long-term value.

Mid-Week Bond Update

Markets await Jackson Hole

Global fixed income investors remained subdued as they awaited for the annual central bankers’ gathering in Jackson Hole, Wyoming – hoping that the free money central banks have made available over the past few years lasts just a bit longer. Expectations that European Central Bank (ECB) president Mario Draghi would use the gathering to...

Mid-Week Bond Update

Risk wins lost decade

The poor week that traditional fixed income risk assets are having doesn’t resemble their story for the past ten years: In the month that marks the tenth anniversary of the outbreak of the global financial crisis, sectors such as...

Mid-Week Bond Update

Fire and fury: a bond market response

Global government bonds rallied after US president Trump threatened North Korea - a market response that was as fiery and furious as the military action threatened to be. The US 10-year Treasury yield fell to 2.22%, after finishing July at 2.29%. The presidential comments reversed a...

Policy Matters

Four Lessons from the Taper Tantrum

The lessons from the 2013 taper tantrum are relevant for bond investors today, but as circumstances are different we do not expect a similar outcome.