Beyond Bulls & Bears

The Fed Calls Time for a Reality Check
Fixed Income

The Fed Calls Time for a Reality Check

The US Federal Reserve cut its benchmark short-term interest rate for the second time this year, but some observers were disappointed the Fed didn’t more strongly signal future easing moves. Franklin Templeton Fixed Income CIO Sonal Desai shares her thoughts on why the central bank needed to rein in expectations a bit.

Pinpointing Fixed Income Credit Risks
Fixed Income

Pinpointing Fixed Income Credit Risks

In this excerpt from the latest Franklin Templeton Thinks, Franklin Templeton Fixed Income Group examines how machine learning techniques can measure the risks of consumer and home loans—helping pinpoint credit risks they think are worth taking. They review digital loans, a relatively new asset class, and explain why quantitative approaches may be more applicable to some fixed income sectors than others.

US Fed in Tough Spot as Market Clamors for Rate Cuts
Fixed Income

US Fed in Tough Spot as Market Clamors for Rate Cuts

The US Federal Reserve kept interest rates steady at its June meeting; it emphasized its data-driven approach to policy decisions but noted it believes the case for lower interest rates to be strengthening. Franklin Templeton Fixed Income CIO Sonal Desai offers her take on the meeting, and why the Fed might actually be exacerbating market volatility ahead.

European Parliamentary Elections: A Barometer of European Thinking?
Fixed Income

European Parliamentary Elections: A Barometer of European Thinking?

European parliamentary elections don’t typically generate international headlines, but with the wrinkle of Brexit still unsettled, this time they are front and center. Our David Zahn weighs in.

On My Mind: Embracing Tech Disruption—Four Lessons For Fixed Income Investors
Fixed Income

On My Mind: Embracing Tech Disruption—Four Lessons For Fixed Income Investors

 The impact of innovation on productivity, economic growth and global trade will be more profound than most people realize, according to Franklin Templeton Fixed Income CIO Sonal Desai. She shares her thoughts on the subject and other key takeaways from our annual Global Investment Forum in San Francisco.

A Hard Brexit Would Remove Uncertainty for Markets
Fixed Income

A Hard Brexit Would Remove Uncertainty for Markets

"Two and a half years ago, with all the options for a negotiated Brexit on the table, a Hard Brexit seemed to be the worst-case scenario. Now, markets may feel that it’s preferable to bring an end to the uncertainty and accept the short-term pain." David Zahn, Head of European Fixed Income

Moving Up in Credit Quality for Better Durability
Fixed Income

Moving Up in Credit Quality for Better Durability

Some investment-grade bonds are riskier than their ratings imply, while high-yield bonds have seen some positive tailwinds. Meanwhile, a large number of bank loan agreements now favor borrow¬ers over lenders. Franklin Templeton Fixed Income Group’s Glenn Voyles, Marc Kremer, Matt Fey, Brian French and Reema Agarwal take a look at these areas of credit landscape today.

Three Developments in Europe You May Have Missed over the Summer—and One You Didn’t
Fixed Income

Three Developments in Europe You May Have Missed over the Summer—and One You Didn’t

David Zahn, head of European fixed income, on why he thinks core European bond yields are unrealistically low, the impact of Japan’s “stealth taper”, and the apparent leadership vacuum at the heart of Europe. Plus why the lack of Brexit progress should be a concern for all EU member states.

Convertible Securities: a Versatile Asset Class
Equity

Convertible Securities: a Versatile Asset Class

“Given the run we’ve seen in the US equity market over the past few years, many investors may be concerned about stock valuations and their equity exposures. In this environment, some investors may want to consider select exposure to convertible securities.” – Alan Muschott, Franklin Equity Group

Michael Hasenstab: An Update on our Global Markets Resilience Scores
Fixed Income

Michael Hasenstab: An Update on our Global Markets Resilience Scores

Templeton Global Macro makes a compelling case that finding attractive opportunities in emerging markets lies in distinguishing the more resilient countries from the rest. Here, CIO Michael Hasenstab provides an update of the team’s proprietary “Local Markets Resiliency Index” and highlights the scores of seven different countries—Argentina, Brazil, India, Indonesia, Mexico, Malaysia and South Africa.

Fed Gives US Interest Rates Another Bump in June
Fixed Income

Fed Gives US Interest Rates Another Bump in June

The US Federal Reserve continued its tightening path at its June policy meeting, raising its benchmark interest rate for the second time this year and seventh time since December 2015. Chris Molumphy, chief investment officer, Franklin Templeton Fixed Income Group, offers us a snapshot of the US monetary policy landscape in the wake of the meeting.

US 10-Year Treasury Crosses 3%: Much Ado About Nothing?
Fixed Income

US 10-Year Treasury Crosses 3%: Much Ado About Nothing?

On April 24, the US 10-year Treasury yield crossed the 3% threshold for the first time in four years, prompting much discussion about the potential implications for the US economy. But to reference a famous Shakespeare play, is all the media focus much ado about nothing? Franklin Templeton Fixed Income Group’s Michael Materasso says investors shouldn’t fret too much about the number.