Western Asset
Fixed income market commentary and research from Western Asset.
United States3 articlesLast published 7 Feb 2025
Fixed Income
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Western AssetFixed Income
Insurance Assets: The Case for Emerging Markets Debt | Western Asset
Western Asset argues that high-grade USD-denominated emerging market debt is a "must have" allocation for insurance portfolios, citing its predominantly investment-grade composition, attractive yield pick-up, low capital charges under NAIC classifications, and superior risk-adjusted returns versus comparable US credits. The piece presents empirical evidence that high-quality EM debt delivered higher total returns with similar or lower volatility than US peers even through periods of severe EM stress, and highlights bottom-up credit research and diversification benefits for insurers.
7 Feb 2025
Western AssetFixed Income
US Consumer Report Card - Fourth Quarter 2024 | Western Asset
Western Asset's quarterly scorecard assesses the US consumer across six dimensions - employment, spending, real income, balance sheets, wealth/net worth, and credit performance - awarding an overall grade of B+ for Q4 2024. The outlook is stable, supported by a resilient labor market, robust real spending growth, and strong household balance sheets, though consumer sentiment and credit performance remain areas of relative weakness.
7 Feb 2025
Western AssetFixed Income
Trade War 2.0 - Reaffirming the Case for Multi-Asset Credit Solutions | Western Asset
Western Asset argues that tariff uncertainty under Trump's Trade War 2.0 reinforces the case for diversified multi-asset credit (MAC) solutions spanning high-yield, bank loans, and securitized credit. The piece cites strong corporate balance sheets, compelling all-in yields, and supportive technicals as fundamental reasons to maintain credit exposure despite two-sided macro risks.
7 Feb 2025