Long-term US Treasuries are seen as a necessary place to hide by many investors seeking to ride out market volatility.
The fixed income specialist's CEO James Hirschmann says he would welcome a rising interest rate environment. He also predicts where the biggest fixed-income flows will be heading and speaks out on Pimco.
The fund house is moving to register two corporate bond funds and a more unusual product in Hong Kong. Legg Mason affiliate Western Asset is also overweight China, bucking a recent trend.
The US fund house’s chief executive, Joseph Sullivan, spoke to AsianInvestor about his global ambitions for the firm, with a focus on Asia, most notably China.
A US default seems not to have been priced in by Asian investors, despite the current government shutdown. Whatever else happens, QE tapering seems likely to be postponed.
The firm will soon roll out a Dublin-domiciled Asian fixed income product. It also expects more Japanese money to flow offshore and sees Philippine bonds as particularly attractive now.