Days of Big Capital Gains Are Behind Us: Eichstaedt

The transcript discusses recent trends in treasury yields, the impact of Trump policies on markets, and changes in Western asset funds. It highlights the comparison between US and global market trends, the role of inflation hedging, and future investment strategies, particularly in the banking sector and emerging markets.

What is one reason the current U.S. treasury rates are considered a bargain globally?

• High inflation rates in the U.S.

• Negative yields on $10 trillion of sovereign debt in Europe and Japan

• The implementation of all Trump policies

• A strong U.S. dollar

What change was made to the Western asset bond funds in response to recent market conditions?

• Reduced allocation to the banking sector

• Increased investment in the industrial sector

• Shortened maturities

• Extended maturities to take advantage of rate backup

How does the speaker view the current stage of the credit cycle in relation to Corporate America?

• Corporate America is in a recession

• There is no more room for growth

• Debt to income is good, and leverage is not high

• Corporate America is over-leveraged and risky

What is the estimated impact of Trump policies on GDP according to the speaker?

• 25 basis points

• 100 basis points

• 75 basis points

• 50 basis points

Which emerging market countries are mentioned as having potential value in the bond market?

• Argentina and Chile

• Russia and South Africa

• Mexico and Brazil

• India and China