Western Asset Managed Municipals Fund · NYSE:MMU
Western Asset Managed Municipals Fund — Investor Presentation (March 2026)
16 slides from Western Asset Managed Municipals Fund's investor presentation, Mar 26, 2026
Slide 1: 2Q26 Market Outlook
2Q26 Market Outlook March 26, 2026 Presented by: Michael Buchanan, CFA Catherine Matthews Chief Investment Officer Global Investment Specialist Western Asset 1
Slide 2: Global Macro Outlook
Global Macro Outlook Growth ● Energy supply shocks to weigh on near-term global growth ● Financial conditions have tightened but fiscal stimulus to come ● U.S. growth will be supported by tax cuts, investment incentives, and resilient consumer spending Inflation ● Tariff impacts are fading ● Higher
Slide 3: Energy Prices Spike Higher
Energy Prices Spike Higher European Crude Brent Futures 120 110 100 90 USD 80 70 60 50 Jan 25 Feb 25 Mar 25 Apr 25 May 25 Jun 25 Jul 25 Aug 25 Sep 25 Oct 25 Nov 25 Dec 25 Jan 26 Feb 26 Mar 26 Source: Bloomberg. As of 23 Mar 26 Western Asset 3
Slide 4: Inflation Fears Rise
Inflation Fears Rise 2-Year Inflation Swaps 3.0 3.3 2.8 3.1 US 2.6 2.9 2.4 2.7 2.2 Eurozone (%) 2.5 US (%) 2.0 Eurozone 2.3 1.8 2.1 1.6 1.9 1.4 1.2 1.7 1.0 1.5 Jan 25 Feb 25 Mar 25 Apr 25 May 25 Jun 25 Jul 25 Aug 25 Sep 25 Oct 25 Nov 25 Dec 25 Jan 26 Feb 26 Mar 26 Source: Bloomberg. As of 23 Mar 26
Slide 5: Policy Rates: Expectations Shift Higher
Policy Rates Expectations Shift Higher Policy Rates Change in the Implied Policy Rate 6.0 at the End of 2026 1.0% 5.5 Market Implied 5.0 0.8% 4.5 0.6% 4.0 3.5 0.4% 3.0 0.2% 2.5 2.0 0.0% 1.5 -0.2% 1.0 0.5 -0.4% 0.0 -0.6% -0.5 -1.0 -0.8% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 US ECB BoE RBA
Slide 6: Spread Sector Valuations
Spread Sector Valuations Credit markets have remained resilient Credit Spreads Are Close to Tights OAS: 5-Year Range (High/Low/Current) 81 US IG Credit 67 151 91 EUR IG Corp* 72 234 315 US HY Corps 248 585 308 EUR HY Corps* 256 668 485 US Leveraged Loans 393 604 135 AAA CLOs 127 261 357 BBB CLOs 323
Slide 7: Software ... A Sector in Focus
Software ... A Sector in Focus Weighted Average Price Over Time Median 2025 of Credit Estimated Universe (x) Across Various Sectors 9.0 2.5 102 Insurance 2.0 8.0 100 Brokers 1.5 98 Overall 7.0 1.0 96 Software 6.0 Price 94 0.5 92 5.0 0.0 Construction and Commercial Services Professional Hotels, Resta
Slide 8: Business Development Corporations ... A Glimpse into Private Credit
Business Development Corporations ... A Glimpse into Private Credit Business Development Corporation (BDC) AUM Maturity Wall $600 30% Perpetual-Life BDCs $500 Unlisted/Private BDCs (excluding perpetuals) 25% Publicly Traded BDCs (listed) $400 20% USD (billions) 15% $300 10% $200 5% $100 0% $0 2026 2
Slide 9: Comparing Credit Metrics
Comparing Credit Metrics Gross Leverage in US Leveraged Credit Interest Coverage in US Leveraged Credit Low High 0.0 10.0 0.5 9.5 9.0 AAA - BBB 1.0 AAA - BBB 8.5 1.5 8.0 2.0 7.5 BB1 2.5 7.0 BB1 6.5 BB2 3.0 BB2 BB3 6.0 3.5 BB3 HY 3.7x Syndicated 5.5 4.0 B1 Loans 3.9x 5.0 4.5 HY 4.7x Syndicated 4.5 Lo
Slide 10: Non-Deposit Financial Institutions (NDFI)
Non-Deposit Financial Institutions (NDFI) NDFI exposures still a relatively small part of banking system loan books US Banking System Loan Book Composition 14,000,000 12,000,000 10,000,000 8,000,000 USD (millions) 6,000,000 4,000,000 2,000,000 0 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014
Slide 11: Massive New Issue IG Supply Expected in 2026
Massive New Issue IG Supply Expected in 2026 2.5 Tech/media Subsectors Drive Large Supply Growth to Fund AI Capex 2.03T 2.0 1.64T 1.51T 1.5 1.21T USD (trillions) 1.0 901M 683M 635M 500M 0.5 0.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD 2026 F* Gross Total Issuanc
Slide 12: Relative Spread Movements in Credit
Relative Spread Movements in Credit High-Yield: BB-B Spread Syndicated Loans: BB-B Spread 2.1 2.1 2.0 2.0 B/BB Ratio 1.9 1.9 B/BB ratio 1.8 1.8 Percent 1.7 1.7 Percent 1.6 1.6 1.5 1.5 1.4 1.4 1.3 1.3 1.2 1.2 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2016 2017 2018 2019 2020 2021 2022 20
Slide 13: Key Takeaways
Key Takeaways Global Macro ● Energy supply shocks to weigh on near-term global growth ● Inflation progress delayed by higher energy prices ● Longer-term inflation expectations remain well anchored ● Central bank rate expectations have shifted higher ● Path to Middle East de-escalation remains uncert
Slide 14: Questions & Answers
Questions & Answers Q +A Western Asset 14
Slide 15: Western Asset by Franklin Templeton
WESTERN ASSET by Franklin Templeton
Slide 16: Risk Disclosure
Risk Disclosure © Western Asset Management Company, LLC 2026. 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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