Western Asset Core Plus Bond Fund Class R · NASDAQ:WAPRX
Western Asset Core Plus Bond Fund Class R — Western Asset Management Company — Investor Presentation (January 2024)
10 slides from Western Asset Core Plus Bond Fund Class R's investor presentation, Jan 23, 2024
Slide 1: The Fed and Liquidity Markets: The Year Begins With Cautious Optimism
The Fed and Liquidity Markets: The Year Begins With Cautious Optimism January 23, 2024 Kevin Kennedy Nicholas Mastroianni, CFA Matt Jones, CFA Head of Liquidity Portfolio Manager Head of Liquidity 0 Portfolio Management Distribution
Slide 2: 2024 Global Outlook
2024 Global Outlook Disinflation ongoing but uneven Central banks will ease policy to normalize real interest rates Economy has remained resilient, but is set to slow Fixed-income outlook ▪ US growth will slow but should avoid recession ▪ Global growth has downshifted and China is now a source of de
Slide 3: Real Progress on Inflation With More to Come
Real Progress on Inflation With More to Come US Rent Inflation Car Prices Remain Elevated % Change, Year-over-Year 160 Index, December 2019 = 100 Average Hourly Earnings 18% 150 BLS: Rent of Primary Residence Used Car Prices Zillow: Observed Rent Index 140 New Car Prices 16% 130 120 14% 110 100 12%
Slide 4: US Growth Moderation Likely to Continue
US Growth Moderation Likely to Continue Change in US Bank Lending 3 Month % Change, Annualized Rate 30% Tight Credit Conditions 20% Savings Rate Likely to Rise 10% High Interest Rates Deter Investment 0% C&I ▪ Especially in Housing and Manufacturing -10% Consumer CRE Total Loans & Leases Fiscal Impu
Slide 5: Rate Cuts Are Coming, But Is March Too Soon?
Rate Cuts Are Coming, But Is March Too Soon? Fed Funds Target Rate 2021 to 2024, and Beyond Fed Funds Rate Fed Funds Futures Fed Dots Lowest FOMC Member Highest FOMC Member 6 5 4 Percent 3 2 1 0 2021 2022 2023 2024 2025 2026 2027 Long Run 2028 Source: Bloomberg, Federal Reserve Summary of Economic P
Slide 6: SOFR, the RRP, the Fed's Balance Sheet and Banking Reserves
SOFR, the RRP, the Fed’s Balance Sheet and Banking Reserves Secured Overnight Financing Rate Reverse Repurchase Facility 5.5 3,000 5.4 Daily Balances (USD, billions) 2,500 5.3 Daily Rate (%) 2,000 5.2 1,500 5.1 1,000 5.0 4.9 500 4.8 0 Nov 23 Dec 23 May 23 Apr 21 Mar 22 Apr 22 Feb 21 Mar 21 May 21 Fe
Slide 7: Peak Policy Rates Are Historically Good For Fixed-Income Returns
Peak Policy Rates Are Historically Good For Fixed-Income Returns 1 Year Cumulative Returns 2 Year Cumulative Returns Beginning the Date of the Last Hike Beginning the Date of the Last Hike Cummulative Amount Fed Funds Rate Date of Last Hike of Hikes in Cycle after Last Hike Agg 3 Month T-Bill Agg 3
Slide 8: Questions & Answers
Questions & Answers OA ESTERN ASSET
Slide 9: Thank you.
Thank you. G ot \— WESTERNASSET
Slide 10: Risk Disclosure
Risk Disclosure © Western Asset Management Company, LLC 2024. The information contained in these materials (“the materials”) is intended for the exclusive use of the designated recipient (“the recipient”). This information is proprietary and confidential and may contain commercially sensitive inform
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