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Our Latest COVID-19 Coverage

Fiscal Policy: Veering Left and Moving Fast

February 22, 2021
By Brian Horrigan

Congressional leaders are aiming to pass a $1.9 trillion fiscal stimulus package by mid-March. This approach is not without risks.

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Can The US Consumer Stay Healthy This Winter?

December 18, 2020
By Jennifer Thomas

A K-shaped recovery is an uneven one in which some industries and some groups get left behind. That is what we will be watching for in the months ahead.

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Global GDP Themes and Forecasts (Infographic)

November 23, 2020
By Craig Burelle

While we expect global growth to slow in the fourth quarter as many countries try to contain another wave of COVID-19, we have upgraded our 2020 GDP growth forecasts for the US and China.

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Why Municipal Market Demand Remains Robust Despite Rising Defaults

November 9, 2020
By Jim Grabovac, CFA

Municipal bond defaults have been rising, but investor demand remains robust. This incongruence may suggest the municipal market is behaving irrationally, but we don't think that's the case.

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The Case for TIPS in a Post-Crisis World

October 21, 2020
By Peter Palfrey, CFA, and Michael Gladchun

Peter Palfrey and Michael Gladchun explain why they believe TIPS could benefit from a repricing of inflation expectations and inflation risk premium.

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COVID-19 as a Credit Case Study: From Airlines to Energy

October 19, 2020
By the Loomis Sayles Credit Research Team

Loomis Sayles has a deep roster of experienced credit analysts. Here's a glimpse into our team's analysis of key sectors impacted by the COVID-19 crisis.

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October 2020 Investment Outlook

October 2, 2020
By Craig Burelle

Key events related to fiscal policy, social distancing and COVID-19 could dictate US economic performance. Our outlook is broadly constructive.

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COVID-19 Has Redefined Infrastructure Needs: Implications for the Municipal Bond Market

September 16, 2020
By Jim Grabovac, CFA

Significant infrastructure financing is coming in the municipal bond market—it is not a question of if, but of when and what magnitude.

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Deal or No Deal, the UK Faces Risks Beyond Brexit

September 16, 2020
By Jon Levy and Jingzhou Meng

The UK faces a protracted mix of problems that could weigh on the economy beyond the end of Brexit.

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US Consumers Appearing Less Confident

September 2, 2020
By Brian Horrigan

Consumers are traditionally the engine of the US economy, and I believe consumer confidence is an important indicator of consumer intentions. The August reading of the Conference Board’s Consumer Confidence Index suggests that consumers are not feeling optimistic.

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Global GDP Themes and Forecasts (Infographic)

August 21, 2020
By Craig Burelle

We believe the global economy appears to be working its way out of a deep recession. Read on for a visual snapshot of GDP growth around the globe.

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Core Plus: Three Questions on What’s Changed Since the March Madness

August 12, 2020
By The Loomis Sayles Core Plus Fixed Income Team

The Loomis Sayles Core Plus Fixed Income Team shares their thoughts on the potential for downgrades in the BBB debt market and dialing up portfolio risk.

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Chart of the Week: World Trade Volumes Have Collapsed

August 10, 2020
By Brian Horrigan

The global volume of exports has dropped 23% (not annualized) in just five months. There really is no precedent for such a shock since data collection began.

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Full Discretion: Three Questions on What’s Changed Since the March Madness

August 6, 2020
By The Loomis Sayles Full Discretion Team

The Loomis Sayles Full Discretion team answers questions on the recovery, government stimulus and how they're investing in this uncertain environment.

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Alpha Strategies: Three Questions on What's Changed Since the March Madness

August 3, 2020
By the Loomis Sayles Alpha Strategies Team

The Loomis Sayles Alpha Strategies Team answers three questions on corporate health, regime models and opportunities in emerging markets.

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Emerging Market Equities: Three Questions on What's Changed Since the March Madness

July 29, 2020
By Ashish Chugh

In May, you noted that emerging markets (EM) were facing a mix of bright spots and risks. How has that mix played out?

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Commercial Asset-Backed Securities: Pockets of Opportunity Remain

July 21, 2020
By Scott Hofer, CFA

Spreads on commercial asset-backed securities  widened considerably as a result of the COVID-19 pandemic, with transportation-related sectors leading the trade down.

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Bank Loans: Three Questions on What's Changed Since the March Madness

July 21, 2020
By John Bell

In March, we saw three different roads back to par, with market recovery in 6-12 months the most likely. How has the recent market activity changed this view?

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Global Fixed Income: Three Questions on What's Changed Since the March Madness

July 20, 2020
By the Loomis Sayles Global Fixed Income Team

In March, the Team anticipated the economy could experience sluggish growth in the third quarter after a downturn in the second. Given the ongoing vagaries of quarantines and shutdowns, how has their growth outlook changed?

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Homebuilders: Holding Up Better Than Expected

July 16, 2020
By Shannon O'Mara, CFA

The homebuilding and building products industries have held up quite well during this economic downturn compared to the material negative impact they experienced during the global financial crisis. 

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Credit Repair: What's Different This Time?

July 7, 2020
By Tom Fahey

As we enter credit repair, we are wary of using the global financial crisis as a benchmark for the path to recovery. We see several key reasons that suggest this time will be different.

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July 2020 Investment Outlook

July 6, 2020
By Craig Burelle

As the economy moves into a credit repair phase, uncertainty related to the future implications of COVID-19 persists.

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COVID-19 Update: An Uneasy Truce

June 10, 2020
By Matt Eagan, CFA, and Elaine Stokes

An update on what the Loomis Sayles Full Discretion Team is watching as we continue to move through the COVID-19 crisis.

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Three Questions on Credit: Environmental, Social & Governance (ESG) Factors

June 10, 2020
By Kathleen Bochman, CFA, Steven Bocamazo and Darcie Sunnerberg

Insights on COVID-19's impact on ESG factors.

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Global GDP Themes & Forecasts (Infographic)

June 1, 2020
By Craig Burelle

The COVID-19 pandemic has tipped the global economy into what appears to be the deepest recession in decades. No region has escaped the impact, but some have fared better than others. Read on for a visual snapshot of what 2020 growth may look like across the globe.

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COVID-19 Impacts on the CLO Market

May 29, 2020
By Michael Herald

Collateralized loan obligations (CLOs) performed well through the global financial crisis but this time may be different. Given these challenges, investors must pay careful attention to factors including CLOs’ structural leverage, collateral quality and managers’ behaviors.

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The Surprising Leverage Profile of EM Corporates

May 29, 2020
By Elisabeth Colleran

It may surprise some investors to learn that the leverage profile of emerging market (EM) corporations appears to be in better shape than that of their US counterparts. Maybe it’s a matter of “been there, done that.”

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Consumer ABS & COVID-19: Assessing the Impact

May 14, 2020
By Jennifer Thomas

Employment is a key driver of performance for consumer asset-backed securities (ABS), and with unemployment at historic highs, the short-term outlook for many parts of the sector is bleak. While remittance data lags, early indications already show declines in prepayments and increases in payment extensions, as we expected. However, we believe payment modifications and government stimulus payments to consumers will limit actual loan losses.

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Five Perspectives on Emerging Market
US Dollar Corporate Debt

May 12, 2020
By The Loomis Sayles Emerging Market Debt Team

Investors of many types were blindsided by the COVID-19 crisis. Emerging market (EM) debt investors, familiar with volatility and the opportunities market dislocations can provide, have been assessing portfolio allocations in light of shifting valuations.

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High-Frequency Data & COVID-19: Using Groceries to Track the COVID Response

May 12, 2020
By Harish Sundaresh, Michael Frederikse and Thomas Dunlap, CFA

It can be difficult to give a fair representation of each country’s market response to the COVID-19 outbreak. Each nation has varying initial conditions, population responses, and approaches to quarantines. Some countries have not issued a formal quarantine order, yet many people may have chosen to quarantine anyway. How can one measure a country’s response under these circumstances? We believe high-frequency data can offer some answers.

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Three Questions on Credit: The Municipal Market

May 7, 2020
By Jim Grabovac, CFA

Insights on COVID-19's impact on the municipal market.

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Bright Spots Among the Risks: Emerging Market Equities

May 7, 2020
By Ashish Chugh

COVID-19 and turbulence in the oil market have been reshaping daily life, economic fundamentals and market activity for weeks. Emerging markets, like the rest of the world, have been along for the ride.

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Bifurcation & Opportunity: Current Take on Credit Markets

May 5, 2020
By Todd Vandam, CFA

Credit markets are bifurcated, and there’s a major yield difference between the perceived winners and losers. This trend is creating a lot of questions—and potential value—for credit investors.  

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When the Unexpected Happens: Negative Oil Prices and Financial Models

May 1, 2020
By Harish Sundaresh and Diqing Wu

When storage capacity is near its limits, how do oil producers offload their inventory? One way is to incentivize buyers with negative prices. This is precisely what happened on April 20, the day before the May WTI futures contract expired.

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COVID-19 Impacts on Non-Agency RMBS and Housing Finance

April 30, 2020
By Stephen LaPlante, CFA

The US housing and mortgage markets—the primary culprits blamed for the last global downturn—do not have that dubious distinction this time. But with COVID-19 forcing near total economic shutdown, the crisis has implications for US housing and mortgage-backed securities.

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Is it Time to Invest in Global Credit? A Q&A with Loomis Sayles' Global Fixed Income Portfolio Managers

April 30, 2020
By David Rolley, CFA, Lynda Schweitzer, CFA, and Scott Service, CFA

In the following Q&A, the Loomis Sayles Global Fixed Income portfolio management team shares its views on the global credit markets, opportunities and risks.

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High-Frequency Data & COVID-19: Investing for the Next Phase of the Cycle

April 22, 2020
By Harish Sundaresh

Investors and financial markets are forward-looking. They are constantly trying to anticipate the future and how to position for it. In a COVID-19 world, where economic uncertainty and financial market conditions are at extremes, that’s no easy task. A key question at times like this is: which models and data sets may be best equipped to inform our decision making?

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The Fed Creates the Municipal Lending Facility

April 21, 2020
By Brian Horrigan, PhD, CFA, and Jim Grabovac, CFA

On April 9, the Federal Reserve announced the creation of the Municipal Lending Facility (MLF), aimed at allowing state and local (S&L) governments access to credit so that they may continue to function in these hard times.

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Three Questions on Credit: Corporate Debt & Downgrades

April 15, 2020
By Chris Gootkind, CFA

Insight on COVID-19's impact on corporate debt and downgrades. 

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Three Questions on Credit: Consumer ABS

April 14, 2020
By Greg Ward and Jennifer Thomas

Insights on COVID-19's impact on consumer ABS sectors.

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Three Questions on Credit: High Yield

April 13, 2020
By Brian Kennedy

Insights on COVID-19's impact on high yield sectors.

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Three Questions on Credit: Considerations for Corporate Pension Plans

April 9, 2020
By Justin Teman, CFA, ASA

Insights on COVID-19's impact on corporate pension plans.

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Three Questions on Credit: Opportunities for Insurance

April 8, 2020
By Pramila Agrawal, PhD, CFA

Insight on COVID-19's impact on the insurance sector.

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Is it Prime Time for Credit?

April 8, 2020
By Michael Crowell and Tom Fahey

Credit markets are moving fast. But periods of maximum uncertainty often make the most attractive entry points.

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Three Questions on Credit: Lodging and Leisure

April 8, 2020
By Joanne McIntosh

Insight on COVID-19's impact on the lodging and leisure sector.

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The FIMA Repo Facility: The Fed’s Solution to the Global US Dollar Crunch

April 7, 2020
By Brian Horrigan, PhD, CFA

On March 31, the Federal Reserve announced the creation of another new liquidity facility; this one is aimed at central banks and international institutions. This new facility is a temporary repurchase agreement facility for Foreign and International Monetary Authorities (FIMA), and is called the FIMA Repo Facility. It is intended to help support the smooth functioning of financial markets, including the US Treasury market, and thus help maintain the supply of credit to US households and businesses.

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The Federal Reserve Revives TALF

April 3, 2020
By Brian Horrigan, PhD, CFA

The Federal Reserve (Fed) has taken another step in its attempt to avert a financial crisis. It revived its Term Asset-Backed Securities Loan Facility (TALF), a measure last used in the Great Recession. The TALF will enable the issuance of asset-backed securities (ABS) backed by student loans, auto loans, credit card loans, loans guaranteed by the Small Business Administration (SBA), and certain other assets. It will do so by lending to those holding AAA-rated ABS.

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Senior Loans' Potential Recovery Opportunity

April 2, 2020
By John Bell

Loans are senior and secured, so they are generally at the head of the queue if there is a default. That gives loans an advantage over high yield bonds and equities in the companies we loan money to when defaults are a concern. As I’ve said before, this advantage is why I think loans have more than one road back to par even as the global economy feels the pain inflicted by COVID-19.

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April 2020 Investment Outlook

April 1, 2020
By Craig Burelle

We believe global stimulus measures could encourage a broad rebound from the current downturn.

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Treasury Liquidity on the Rebound

March 31, 2020
By Michael Gladchun

It’s amazing what you can achieve with a budget of $75 billion per day. Since mid-March, the Federal Reserve has worked relentlessly to unfreeze Treasury markets. The results of its asset purchases are starting to show. Treasury liquidity—one of the most unusual and troubling pain points of this liquidity crisis—has vastly improved since quantitative easing (QE) started.

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ECB Bazooka: A Look at its Rescue Programs

March 30, 2020
By Tom Fahey, Marianne Winkelman, Robyn Wilkin and Valerie Miles

Like everywhere else, Europe needs liquidity. And the European Central Bank is delivering that in abundance. It appears to stand ready to do more without delay when markets become dysfunctional.

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Jae Park and Michael Giles on the COVID-19 Crisis, Credit Cycle and Investing with Conviction

March 30, 2020
By Jae Park and Michael Giles, CFA

Last week, we held a call with our Chief Investment Officer and Chief Investment Risk Officer to discuss how Loomis Sayles is responding to COVID-19. Read a summary of the call here.

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The Local Effects of a Global Pandemic: Loomis Sayles' Municipal Sector Outlook

March 30, 2020
By The Loomis Sayles Municipal Credit Research Team

Our municipal credit research team offers their current outlooks on the impact of COVID-19 on key sectors.

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Fed to the Rescue: Providing Liquidity to the Corporate Bond Market

March 30, 2020
By Brian Horrigan, PhD, CFA and Brian Kennedy

To help support investment-grade corporate bond market liquidity, the Federal Reserve introduced two facilities March 23: the Primary Market Corporate Credit Facility and the Secondary Market Corporate Credit Facility

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Fed Acts Fast and Furious....Again: Announces Rescue Liquidity for Corporate Sector

March 27, 2020
By Brian Horrigan, PhD, CFA and Brian Kennedy

On March 23, the Federal Reserve announced measures to support the corporate bond market beyond the more traditional support for only financial institutions.

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Oil: A Price War with No Likely Winners

March 23, 2020
By Ryan McGrail

Oil’s back below $30 and suddenly it feels like 2016 all over again. Only it’s not. Saudi Arabia’s 2015-2016 production boom was a war on US shale. This time, Saudi Arabia is waging a war for market share against Russia and the US. It’s a war with no winners, least of all US fracking.

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Investment Implications of COVID-19 and Pension Plans: What Plan Sponsors Need to Consider

March 20, 2020
By Justin Teman, CFA, ASA

While the human element is certainly the primary concern in relation to the coronavirus impact, we turn our attention here to the impact on pension plans and review key considerations for plan sponsors in this evolving crisis.

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Municipal Fixed Income Update

March 19, 2020
By the Loomis Sayles Municipal Fixed Income Team

The municipal fixed income market, like most other asset classes, is experiencing unprecedented volatility. Large mutual fund outflows are adding to the volatility as investors seek to add to cash reserves by selling what may be deemed easiest to sell. There’s been significant widening in bid/ask spreads as a result of the market sell imbalance and a corresponding significant decline in liquidity.

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COVID-19 and the Loan Market

March 19, 2020
By John Bell

We expect to see a combination of anti-viral medications and vaccines develop over 6 to 12 months globally. We are seeing daily positive articles on the effectiveness of anti-virals from other countries. Vaccine development appears to be moving very quickly, and there is potential for a vaccine to get to people as soon as the end of 2020. If people think effective treatments and vaccines are imminent, life could go back to normal, and in this case, that could mean coming out of our protective shells into a world powered by loose monetary and fiscal policy.

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Pandemic and Price War: Industry Analysis of the Current Environment

March 18, 2020
By the Loomis Sayles Credit Research Group

In the evolving pandemic environment, Loomis Sayles credit analysts are reassessing, recalibrating and reconsidering the factors influencing the businesses they follow. As one might expect, companies are feeling the impact of the new economic landscape in a variety of ways. Here, our analysts offer their early takes on how key sectors and industries might fare.

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Loomis Sayles’ Core Plus Fixed Income Team Talks Volatility and Managing Through the Cycle

March 15, 2020
By Rick Raczkowski and Peter Palfrey, CFA

On Thursday, March 12, Rick Raczkowski, co-lead portfolio manager of Core Plus Fixed Income participated in a conference call with clients to discuss recent events and market activity. He discussed that while there is a lot of fear and uncertainty in the market right now, he and co-lead portfolio manager Peter Palfrey are maintaining their discipline of managing through the cycle as they have for the past 20 years.

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Loomis Sayles’ Global Fixed Income Team on COVID-19, Monetary and Fiscal Actions, Credit Markets and Future Tailwinds

March 15, 2020
By Lynda Schweitzer, CFA and Scott Service, CFA

On Friday, March 13, Loomis Sayles’ Global Fixed Income team held a conference call to discuss the current market environment, policy responses and potential opportunities. Here, portfolio managers Lynda Schweitzer and Scott Service summarized a few key points.

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Can The Fed Fix The Treasury Market?

March 15, 2020
By Maura T. Murphy, CFA and Michael Gladchun

When the world’s biggest debt market starts having major liquidity issues, investor panic rises to a whole new level. On March 12 and 13, after about a week of extraordinary dysfunction in the US Treasury market, the Federal Reserve issued a major crisis response, expanding Treasury purchases and repurchase operations to boost liquidity and shore up so-called risk-free assets. Will it be enough to fix the Treasury market? Here’s our take.

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Loomis Sayles’ Full Discretion Team Talks COVID-19, Policy, Credit And New Territory

March 15, 2020
By Matt Eagan and Elaine Stokes

On Thursday, March 12, Loomis Sayles’ Full Discretion team held a conference call to discuss current conditions, upcoming challenges and potential portfolio positioning and solutions. Here, portfolio managers Matt Eagan and Elaine Stokes summarized a few key points.

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Big-Picture Insights From The Loomis Sayles Alpha Strategies Team

March 13, 2020
By Kevin Kearns, Harish Sundaresh, Andrea DiCenso and Maura T. Murphy, CFA

On Thursday, March 12, Loomis Sayles’ Alpha Strategies team held a conference call to discuss current conditions, upcoming challenges and potential portfolio positioning and solutions. Here, each speaker summarized a few key points.

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Quick Takes On The Market And Economic Impact Of The Coronavirus

March 6, 2020
By Saurabh Lele, CFA, Tom Fahey, Michael Crowell and Michael Gladchun

We held a conference call on March 5 to discuss the market and economic impact of COVID-19. In case you missed it, each of our speakers shared their key takeaways.

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The Coronavirus: Distinguishing Short-Term Tumult From Long-Term Impact

February 28, 2020
By Michael Crowell, Tom Fahey, Craig Burelle and Saurabh Lele, CFA

Markets have sent a clear message in recent days: investors are afraid of the coronavirus. The disease’s global progression and containment measures are seen as impediments to global economic recovery. The toll on human lives has indeed been unnerving and regrettable. However, fear can lead investors to make irrational choices. We acknowledge that the virus is a global growth risk, and the situation will probably get worse before it gets better. Read on for our assessment of developments, likely implications and what we are analyzing to test our outlook.

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A message from CEO Kevin Charleston to our global clients and business partners.

April 15, 2020

As COVID-19 continues to spread and global market volatility persists, we are closely monitoring the evolving situation.

Read the Letter

Read Previous Updates from Kevin Charleston

March 3, 2020

March 12, 2020

March 18, 2020

March 26, 2020