Beyond Bulls & Bears

High Yield Bonds in View: The Impact of Inflation
Fixed Income

High Yield Bonds in View: The Impact of Inflation

Our high yield corporate credit team has been monitoring how inflation is impacting various market sectors, with an eye on four factors: input cost inflation, pricing power, impact to earnings and repricing vulnerability. Here, Matt Fey and Brian French explore which sectors may be more greatly impacted within these areas, and why corporate credit in general should be able to weather inflation reasonably well.

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.

Municipal Bond Perspective: Approach High Yield with Caution in 2020
Fixed Income

Municipal Bond Perspective: Approach High Yield with Caution in 2020

As we head into 2020, municipal bonds will likely remain attractive for many tax-sensitive investors, but their performance potential could prove to be relatively muted compared to 2019, according to Sheila Amoroso, director of our Municipal Bond Department. She and her team say this is due to the general level of interest rates and tighter yield spreads, particularly for lower-rated segments of the municipal market. They believe that while now may be a good time to consider a more cautious approach, they still see potential for high levels of tax-exempt 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.

2015 Investment Outlook: US Credit Cycle Tiptoes into Middle Age
Fixed Income

2015 Investment Outlook: US Credit Cycle Tiptoes into Middle Age

In our view, companies' generally slow and steady approach to spending and expanding has delayed the US economy's progression through the credit cycle.

Not Necessarily a Dirty Word

Not Necessarily a Dirty Word

What’s Scarier?

What’s Scarier?