TCW’s Post

The fixed income market has bounced around amid speculation about the Federal Reserve's next move to stamp out inflation and keep the economy robust. So, what's next as policymakers consider a potential rate cut in the last six months of the year? TCW portfolio managers weigh in on whether the economy is slowing or stalling, and where to find opportunities through market fluctuations. https://tcwgrp.com/vk21jr

There's no question heightened global uncertainty is weighing on financial markets, with this year’s elections approaching amid significant geopolitical tensions. Penny Foley, Co-Head of Emerging Markets, recently appeared on Bloomberg’s FICC Focus podcast and says we're witnessing a rapidly evolving multipolar system. Foley highlights the shift from a U.S.-dominated world to a more complex playing field with China and the U.S. as key poles, alongside the rising influence of the "global South" – primarily EM countries. TCW is strategically positioned, closely monitoring shifting power dynamics, and focused on #EM's pivotal role in commodities, AI and the energy transition in this transformative year. Listen to the episode: https://tcwgrp.com/2wqf1c.

We believe active management is essential for identifying high-conviction opportunities and producing long-term returns across market cycles. Especially in the current market environment as concentration and dispersion rises. Learn more from CIO of Equities Michael Reilly: https://tcwgrp.com/3t1igk For fund disclosures and more information on TCW ETFs: etf.tcw.com

The bond market's early optimism for rate cuts during the first half of the year has given way to volatile trading and climbing yields. On TCW's latest episode of #FocusOnFixedIncome, Global Rates experts Jamie Patton and Bret Barker unpack this dramatic shift and analyze the Treasury's critical part in economic revival efforts with Patrick Moore. Listen: https://tcwgrp.com/elw2lb

Active management allows portfolio managers the flexibility to quickly shore up investments on a defensive footing or swiftly deploy capital when taking advantage of market opportunities. Learn more from Jerry Cudzil, Generalist Portfolio Manager, Fixed Income. https://tcwgrp.com/gt9s8x

We are proud to announce the conversion of another TCW mutual fund into an active ETF, as the TCW Flexible Income ETF (#FLXR) joins the TCW ETFs suite on NYSE today.    With inflation at the forefront of clients’ and investors' minds, FLXR aims to generate consistent income and deliver strong returns with low to moderate interest rate risk. This ETF leverages our fixed income team’s disciplined, cross-sector expertise. Read more: https://tcwgrp.com/6i9ucr For disclosures, holdings and more information on TCW ETFs, please visit https://etf.tcw.com/. For fund disclosures and more info on FLXR: https://etf.tcw.com/flxr/

Fixed Income CIO Bryan Whalen believes that the bond market may be primed for double-digit returns due to two tailwinds. TCW expects policymakers will slash rates faster than the market anticipates over the next 12 to 24 months, and, unlike the post-pandemic rout experienced in the fixed income market, U.S. Treasuries and corporate bonds these days are benefitting from higher interest payments. As Whalen says, "Investors could see substantial gains with the dual support of higher yields and easing policies. It'll be about the journey." Watch the Bloomberg Radio segment for more: https://tcwgrp.com/wrql0f #BondMarket #FixedIncome #InterestRates

Rick Miller, Head of #PrivateCredit at TCW, says the $1.4T industry's next four years will look "markedly different" than the last 13 years, as borrowers face higher interest rates and pockets of underperformance. At #SuperReturn International, Miller noted this new period means investors will be much more diligent about prioritizing managers who maintain a disciplined approach to underwriting.   "When issues arise with a loan, covenants allow early intervention to prevent further deterioration and cash burn. Successfully managing an underperforming business and working to return it to profitability requires a team with extensive experience and expertise." TCW remains committed to its rigorous approach and long-term value creation focus for clients.

Asset-backed securities (ABS) issuance has surged by 44% in the past year, reaching $144B. This trend in the public markets mirrors the significant growth and evolution underway in private credit, which has become a $2T asset class globally and a critical source of capital for the economy. In the latest episode of #FocusOnFixedIncome, securitized products experts Peter Van Gelderen and Dominic Bea dive into insurance company demand, which, fueled by higher rates and business growth, is a major driver behind the ABS boom. The market has expanded beyond credit cards and mortgages to now finance data centers, fiber optic cables, cell towers and even music publishing rights. Listen to the podcast: https://tcwgrp.com/evwv0r