Legg Mason: 2019 Investing Opportunities in Fixed Income

Hi, I'm Tom Lydon in Hollywood, Florida, the internal ETF conference here with Rick Giannone, managing director and head of ETF product management at Legg Mason, and Ellen Camera, whose product specialist at Western Asset Management, Rick, knew that You are very excited about this. new partnership you have with Western, tell us about it, they are fantastic partners, certainly a well-known brand in this space. We have recently launched two new

fixed

income

ets with Western and we are also hearing from many clients. Although many of them have a positive outlook on this market, the threat of a market slowdown is discouraging for them, at the same time they are all looking for performance and therefore, up to this point we have offered a number of products that we can generate

income

. in a stock-type strategy.

We now have a partner in Western that we can offer some

fixed

income products here. I'll also tell us a little about the outlook for

2019

. What are some key things advisors should think about? I think one of the key things is that with Durham Pels' recent comments the use of the word patience is that that has really changed the market's focus from every meeting that rates are going to rise to that we are probably in a great pause here, maybe all year round. You also know that our view of the US economy is that it slows down some of the fiscal stimulus.

We're probably looking at two and a quarter years, but we still see

opportunities

and diversified sectors. We see

opportunities

in a variety of different areas where we can. driving income not only by looking at longer-term securities, but also for investors looking to not have a lot of duration in their portfolio, great, so what we have here are these strategies, every time we get into these ETFs, What do they tell us about the right of ETFs again. It's not just about what you earn, it's about what you keep, which is why we love offering these two new products in ETF format.

The first product we launched, this product called WBN dwb andy, leverages a flagship computer running Core and is also priced at 45. The basis points are a very low price in that space and our newest product, which is just starting to listing on Friday, is a nod to 29 basis points. Furthermore, the duration of the very low price is less than three and we expect to get a return of more than four. Excellent. Well, I'm very excited. for both and we hope for a great

2019

for this association. We hope to see you soon.