Western Asset Management

"Western Asset believes that elevated supply and attractive relative value, in the context of favorable credit fundamentals, offer an attractive entry point for long-term investors ..." https://wam.gt/4eUOUHi #WAM_blog #muni #munibonds

In June 2024, 𝐖𝐞𝐬𝐭𝐞𝐫𝐧 𝐀𝐬𝐬𝐞𝐭 held its 𝟐𝐧𝐝 𝐀𝐧𝐧𝐮𝐚𝐥 𝐋𝐨𝐧𝐝𝐨𝐧 𝐃𝐞𝐛𝐚𝐭𝐞𝐬 in the City of London, hosted by 𝐇𝐞𝐚𝐝 𝐨𝐟 𝐋𝐨𝐧𝐝𝐨𝐧 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬 𝐌𝐢𝐜𝐡𝐚𝐞𝐥 𝐙𝐞𝐥𝐨𝐮𝐟. 𝐂𝐨-𝐂𝐈𝐎 𝐌𝐢𝐜𝐡𝐚𝐞𝐥 𝐁𝐮𝐜𝐡𝐚𝐧𝐚𝐧 set the scene by discussing the outlook and impact on markets of: • Inflation • The Global economy • Interest rates • The US elections • Why Western Asset sees compelling value in securitised credit 𝐓𝐡𝐞 𝐌𝐚𝐜𝐫𝐨 𝐏𝐚𝐧𝐞𝐥 pitted two seasoned bond professionals together to debate alternative views of inflation, with Western Asset’s portfolio manager 𝐑𝐢𝐜𝐡𝐚𝐫𝐝 𝐁𝐨𝐨𝐭𝐡 challenging 𝐂𝐢𝐭𝐢𝐛𝐚𝐧𝐤’𝐬 𝐦𝐚𝐜𝐫𝐨 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐬𝐭 𝐉𝐢𝐦 𝐌𝐜𝐂𝐨𝐫𝐦𝐢𝐜𝐤’𝐬 view that inflation could remain sticky. 𝐏𝐚𝐮𝐥𝐨 𝐂𝐚𝐫𝐢𝐜𝐚𝐭𝐢, 𝐖𝐞𝐬𝐭𝐞𝐫𝐧 𝐀𝐬𝐬𝐞𝐭’𝐬 𝐇𝐞𝐚𝐝 𝐨𝐟 𝐧𝐨𝐧-𝐔𝐒 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭, shed light on how investors can prepare for low-probability-high-impact events such as US elections by modelling alternative scenarios. 𝐓𝐡𝐞 𝐂𝐫𝐞𝐝𝐢𝐭 𝐏𝐚𝐧𝐞𝐥, featuring 𝐉𝐢𝐦 𝐑𝐞𝐢𝐝 – 𝐃𝐞𝐮𝐭𝐬𝐜𝐡𝐞 𝐁𝐚𝐧𝐤’𝐬 𝐇𝐞𝐚𝐝 𝐨𝐟 𝐅𝐮𝐧𝐝𝐚𝐦𝐞𝐧𝐭𝐚𝐥 𝐂𝐫𝐞𝐝𝐢𝐭 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲, and 𝐀𝐧𝐧𝐚𝐛𝐞𝐥 𝐑𝐮𝐝𝐞𝐛𝐞𝐜𝐤 – 𝐖𝐞𝐬𝐭𝐞𝐫𝐧 𝐀𝐬𝐬𝐞𝐭’𝐬 𝐇𝐞𝐚𝐝 𝐨𝐟 𝐍𝐨𝐧-𝐔𝐒 𝐂𝐫𝐞𝐝𝐢𝐭, debated the key issues driving valuations and fundamentals in global credit markets: panelists discussed where we are in the credit cycle, key risks such as elections and higher defaults, where demand for credit is coming from and whether credit spreads can go tighter. They also offered their views on the current valuations of bank bonds and opined on how to factor AI advances into credit markets. Closing the 𝐋𝐨𝐧𝐝𝐨𝐧 𝐃𝐞𝐛𝐚𝐭𝐞𝐬, BBC political journalist and podcaster 𝐀𝐝𝐚𝐦 𝐅𝐥𝐞𝐦𝐢𝐧𝐠 shared fascinating and entertaining insights into how politicians on both sides of the Atlantic are vying to woo voters at the ballot box. #WesternAsset #WesternAssetDebates2024 #AssetManagement #Fixedincome #thoughtleadership #Finance #Investing #Economy #Inflation #CreditMarkets #RealEstate #Elections #LondonDebates

"... wage growth is close to the Fed’s targets, and the June data are at least a hint that there is further deceleration there." https://wam.gt/3XUfc6z #WAM_blog #JobsReport #BLSdata #Fed

Please join us on July 11 for our next webcast, featuring Ken Leech and Michael Buchanan, who will discuss what we see ahead for fixed-income markets, including Fed policy, inflation, the macro outlook and more: https://wam.gt/3RUKx50 #FixedIncome #Inflation #Fed

"These data put a September Fed rate cut very much in play." https://wam.gt/3VLN0zP #WAM_blog #BLSdata #Fed #CPI #PCE #Inflation

"... the comparative value of CLO equity should increasingly appeal to buy-and-hold investors given anticipated return obstacles for other alternatives." https://wam.gt/3RLpzpp #WAM_blog #CLO #CLOequity

"The present, apparent imbalance between starts and sales looks nearly as ominous as that of late 2021." https://wam.gt/3XGWGy9 #WAM_blog #NewHomeSales #NewHomeStarts #Homebuilding

"The continued growth of tax collections highlights the resiliency of municipal credit, despite signs of slower economic growth." https://wam.gt/4bm7q8z #WAM_blog #muni #munibonds

"Sukuk have emerged as a vital alternative financing tool for several countries across the Middle East, Asia and Africa ..." https://wam.gt/45Flicx #WAM_blog

"The Fed data highlights positive signs for municipal demand, as the core retail buyer has signaled the willingness to re-enter the market this year." https://wam.gt/3VAnVbj #WAM_blog #muni #munibonds #Fed