Beyond Bulls & Bears

Greener Post-Election Germany Likely, but Limited Fixed Income Impact
Fixed Income

Greener Post-Election Germany Likely, but Limited Fixed Income Impact

The German election resulted in change in party leadership, but market impact should be limited, according to David Zahn, our Head of European Fixed Income. He shares an overview of the election implications.

On My Mind: Leaving QE, Never Easy
Fixed Income

On My Mind: Leaving QE, Never Easy

This year’s annual economic policy symposium in Jackson Hole opens the six months that will likely define the legacy of the Powell Fed’s first term. The robust recovery, high inflation and record asset prices call for the Fed to wind down an extraordinary monetary easing that is also exacerbating economic inequality. But leaving QE isn’t easy, as financial markets have become overly dependent on Fed support. In her latest “On My Mind,” our Fixed Income CIO Sonal Desai discusses the Fed’s challenges and what they mean for investors.

US Infrastructure Plan and Muni Bond Update
Fixed Income

US Infrastructure Plan and Muni Bond Update

In May, our municipal bond team published some thoughts on US President Joe Biden’s $2 trillion infrastructure package called “The American Jobs Plan.” As this package makes its way through Congress, the team will provide updates—here’s the latest from our Muni Bond Director Jennifer Johnston.

Muni Market View on The American Jobs Plan
Fixed Income

Muni Market View on The American Jobs Plan

US President Joe Biden recently announced an ambitious new $2 trillion infrastructure plan, which touches many areas of the US economy. Jennifer Johnston, director of research, Franklin Templeton Municipal Bonds, outlines some highlights of this sweeping legislation, and how it could impact the muni market.

High Yield Bonds in View: Energy
Fixed Income

High Yield Bonds in View: Energy

Much has changed since the oil-market collapse in the early pandemic days of 2020, when prices actually turned negative. Franklin Templeton Fixed Income Research Analyst/Portfolio Manager Bryant Dieffenbacher looks back at industry developments since then, and outlines opportunities he sees in the high-yield energy bond market today.

High Yield in View: Automobiles and Semiconductors
Fixed Income

High Yield in View: Automobiles and Semiconductors

COVID-19 caused ripple effects throughout many industries and sectors, including automobiles. An already-challenging lockdown environment that forced vehicle production shutdowns also saw shortages of parts—namely semiconductors—which continue to linger. Franklin Templeton Fixed Income Analyst Aleck Beach outlines the implications for investors.

COVID 19 Disrupts Municipalities—Will Taxing Millionaires Accelerate Outmigration?
Fixed Income

COVID 19 Disrupts Municipalities—Will Taxing Millionaires Accelerate Outmigration?

Apart from some high-profile downgrades, the muni credit markets finished 2020 buoyed by breakthrough vaccines and signs that state and local tax collections were better than anticipated. That said, many governors still face tough choices when it comes to budget shortfalls: they must either raise revenues, cut spending, or both. Our Director of Municipal Bonds, Ben Barber, and Director of Municipal Bond Research, Jennifer Johnston, explain why tax revenues have rallied unexpectedly for California, and explore if working remotely will accelerate outmigration from New York City.

European Fixed Income in 2021: Focused on Recovery, and Politics
Fixed Income

European Fixed Income in 2021: Focused on Recovery, and Politics

While the calendar has turned to a new year, many of the same uncertainties of 2020 still linger—namely the COVID-19 pandemic. However, David Zahn, our Head of European Fixed Income, sees reasons to be optimistic the picture will look brighter for Europe by year-end, and is poised to take advantage of potential opportunities that arise.

Brexit Deal Finally Struck as 2020 Comes to a Close
Fixed Income

Brexit Deal Finally Struck as 2020 Comes to a Close

The United Kingdom and European Union finally put Brexit to bed, striking a deal in the final days of 2020. While the deal may not be perfect for either side, David Zahn, our Head of European Fixed Income, says the markets welcomed the removal of uncertainty.

On My Mind: Better Information Key to Vaccine “V-Day”
Fixed Income

On My Mind: Better Information Key to Vaccine “V-Day”

With a new wave of COVID-19 contagion triggering a new round of economic restrictions across a number of countries, hopes are more than ever focused on the quick release of a vaccine. But the latest pulse of our Franklin Templeton-Gallup Economics of Recovery Study reveals that better public information will be key for a vaccine to deliver a “V-Day” for the pandemic and the recovery. The latest poll also warns to watch out for rising prices. Franklin Templeton Fixed Income CIO Sonal Desai breaks down the latest results.

On My Mind: The Fed’s Final Frontier—Negative Rates or Yield Curve Control?
Fixed Income

On My Mind: The Fed’s Final Frontier—Negative Rates or Yield Curve Control?

Given fears of a COVID-19 resurgence and US election uncertainties looming, many investors are wondering what comes next for policymakers in terms of supporting the economy. Our Fixed Income CIO Sonal Desai weighs in on the possibility of negative US interest rates or other measures.

A Fixed Income View of 2020: Separating Sentiment from Fact
Fixed Income

A Fixed Income View of 2020: Separating Sentiment from Fact

Investors could be in for a bumpy year ahead, according to Franklin Templeton Fixed Income CIO Sonal Desai. She emphasizes the importance of separating the facts from the headlines, but also thinks it’s a good time to look to “de-risk” portfolios to some extent, while still remaining invested.