Western Asset Core Plus Bond Fund Class R · NASDAQ:WAPRX
Western Asset Core Plus Bond Fund Class R — Western Asset Management Company — Investor Presentation (April 2025)
13 slides from Western Asset Core Plus Bond Fund Class R's investor presentation, Apr 15, 2025
Slide 1: The Fed and Liquidity Markets: Steady Through the Noise
April 15, 2025 The Fed and Liquidity Markets: Steady Through the Noise Matt Jones Kevin Kennedy Nick Mastroianni Head of Liquidity Distribution Head of Liquidity Portfolio Management Portfolio Manager Western Asset 1
Slide 2: Global Outlook
Global Outlook Global growth converging, with US exceptionalism waning Further progress on inflation expected Growth and inflation outlook clouded by tariff uncertainty Downside risks to the US labor market have increased Policy rates will be cut further despite crosscurrents from growth and inflati
Slide 3: Offsetting Impacts to GDP Growth
Offsetting Impacts to GDP Growth Tariff impacts set to be front-loaded ● Tariffs weigh on growth ● Tax cuts and regulatory easing can provide some offset ● Near-term net impact to be growth negative, but should moderate over time Expected Impact on Year-over-Year GDP Growth 1.0 0.5 0.0 Percent -0.5
Slide 4: US Labor Market
US Labor Market ● Downside risks to jobs and growth have increased with DOGE layoffs, business uncertainty due to tariff policy, and slowing immigration Trade Policy Uncertainty and Small Job Openings and Labor Turnover Survey Business Uncertainty is High 210 6000 5.0% 190 4.5% 5000 4.0% 170 4000 3.
Slide 5: Fed Funds is Heading Lower
Fed Funds is Heading Lower The timing and depth of cuts remains clouded by trade and fiscal policy Fed Funds 6% 5% Forecast 4% 3% 2% 1% 0% 2015 2015 2016 2016 2017 2017 2018 2019 2019 2020 2020 2021 2022 2022 2023 2023 2024 2024 2025 2026 2026 2027 2027 Fed Funds FOMC Median Forecast Fed Funds Swap
Slide 6: The Fed Is Certainly Uncertain
The Fed Is Certainly Uncertain Stagflation risks have increased in the eyes of the committee. Uncertainty About Uncertainty About the Uncertainty About GDP Growth Employment Rate Core PCE Inflation 20 20 20 Number of Participants Number of Participants Number of Participants 15 15 15 10 10 10 5 5 5
Slide 7: Reserves at the Fed Have Held Steady While the RRP Has Decreased
Reserves at the Fed Have Held Steady While the RRP Has Decreased Reserve Balances & Reverse Repurchase Agreements (RRP) 7000 6000 5000 4000 3000 2000 1000 0 2020 2021 2022 2023 2024 US Reserve Balances with Federal Reserve Banks NY Fed Overnight RRP Source: Federal Reserve of New York. As of 11 Apr
Slide 8: Repo Continues to Grow While SOFR Volatility Ticks Up
Repo Continues to Grow While SOFR Volatility Ticks Up The SOFR Spread over EFFR has shown volatility in recent months Secured Overnight Financing Rate and Tri-Party Repurchase SOFR versus EFFR Spread Differential Agreement Volumes Year to Date 2025 May 2024 to April 2025 4.55 3,000 0.25 2,663 0.22 4
Slide 9: Volatility Will Create Opportunities in 2025
Volatility Will Create Opportunities in 2025 Spread sector and interest rate volatilities have diverged 250 200 150 Index 100 50 0 2021 2022 2023 2024 2025 MOVE Index Credit Spread Volatility Source: Bloomberg. As of 09 Apr 25 The above reflects current opinions of Western Asset, which are subject t
Slide 10: Short-Term Strategies
Short-Term Strategies Active short-term strategies seek to provide capital preservation and incremental yield while managing risk Moving down in risk Greater protection from rising rates ● Short Duration Potential Return ● 1-3 Years Moving up in risk Greater return potential ● Ultra Short than money
Slide 11: Questions & Answers
Questions & Answers Q +A Western Asset 11
Slide 12: Western Asset, A Franklin Templeton Company
WESTERN ASSET A Franklin Templeton Company
Slide 13: Risk Disclosure
Risk Disclosure © Western Asset Management Company, LLC 2025. 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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