Beyond Bulls & Bears

The Federal Reserve: Dealer’s Choice
Fixed Income

The Federal Reserve: Dealer’s Choice

The US Federal Reserve cut its benchmark short-term interest rate for the first time in 11 years in what Chairman Jerome Powell called a “mid-cycle adjustment” to sustain the US economic expansion. Powell appeared to struggle to reconcile his admission the US economy is strong with this decision, says Franklin Templeton Fixed Income CIO Sonal Desai. She shares her thoughts on the July policy meeting and the potential market implications.

Municipal Bonds: When Full Faith and Credit Falls Flat
Fixed Income

Municipal Bonds: When Full Faith and Credit Falls Flat

Once upon a time, US municipal bonds were generally considered less risky than corporate bonds. Backed by the full faith and credit of state governments, investors had confidence they would receive their principal plus interest without fail. Times have changed. For some states and local governments, decades of financial mismanagement and massive pension liabilities are threatening to upend the full faith and credit pledge. In this article, Franklin Templeton Fixed Income takes a look at the situation, with Illinois being an example of a particularly dire case.

As Public Attitudes Toward the Environment Change, So Should the Investment Approach
Fixed Income

As Public Attitudes Toward the Environment Change, So Should the Investment Approach

“After attending this year’s Principles for Responsible Investment Conference (PRI) in San Francisco, our takeaway message is clear: Investors and investment managers have to be proactive in addressing changing public attitudes toward the environment.” -David Zahn