Beyond Bulls & Bears

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.

European Fixed Income: Coming Out of Crisis
Fixed Income

European Fixed Income: Coming Out of Crisis

As European economies slowly start to come out of coronavirus lockdowns, it could be some time before growth returns to pre-crisis levels, according to David Zahn, our Head of European Fixed Income. He says the crisis has been another test for the European Union as the coronavirus has affected some countries moreso than others. But he sees this as perhaps the best time in years to invest in European fixed income.

Fixed Income View: A Crisis Like No Other
Fixed Income

Fixed Income View: A Crisis Like No Other

When times of turmoil hit, most investors become risk-averse, seeking safety over opportunity for higher returns. The coronavirus-driven crisis is no different in that regard. However, John Beck, our director of fixed income, London, sees some striking differences between this and other crises, and offers some thoughts on where he thinks taking some risk today might make sense.

The Fed and Fixed Income ETFs: The ETF Issuer Spread Widens Further
LibertyShares

The Fed and Fixed Income ETFs: The ETF Issuer Spread Widens Further

As the ravages of the coronavirus reverberated through the global economy in March and into April, the Federal Reserve announced a number of measures to help provide relief to financial markets—one being the purchase of exchange-traded funds (ETFs). In the final post of a three-part discussion on the topic, our David Mann opines on the Fed’s inclusion of high-yield ETFs within these purchases.

The Road to Premiums is Paved with Good Intentions: Perspective on the Fed and ETFs
LibertyShares

The Road to Premiums is Paved with Good Intentions: Perspective on the Fed and ETFs

The US Federal Reserve recently announced a number of measures to support the economy and markets amid the coronavirus crisis. One involves the purchase of fixed income exchange-traded funds (ETFs). David Mann, Head of Capital Markets, Global ETFs, shares his thoughts on the subject, and what he thinks is the best way to support the corporate bond market through these purchases.

On My Mind: More Heavy Lifting from the Fed—While Congress Squabbles
Fixed Income

On My Mind: More Heavy Lifting from the Fed—While Congress Squabbles

The US Federal Reserve continues to use whatever tools it can to help combat economic fallout from the coronavirus. Sonal Desai, Chief Investment Officer, Franklin Templeton Fixed Income, calls its latest response “a whole new level” of stimulus.

The Impact of the ECB’s Coronavirus Rescue Fund and BoE Rate Cut on European Bonds
Fixed Income

The Impact of the ECB’s Coronavirus Rescue Fund and BoE Rate Cut on European Bonds

This week, both the European Central Bank and Bank of England took further measures to help contain the financial fallout from the coronavirus and alleviate pressure on strained public finances. Our David Zahn, Head of European Fixed Income, shares his views on what it means for European bonds.

On My Mind: The Fed Speaks Loudly and Carries a Big Stick
Fixed Income

On My Mind: The Fed Speaks Loudly and Carries a Big Stick

The US Fed just announced a number of new measures to help the economy as the coronavirus spreads. Our Fixed Income CIO Sonal Desai weighs in.

UK Budget Ease Follows Coordinated BOE Rate Cut
Fixed Income

UK Budget Ease Follows Coordinated BOE Rate Cut

Newly appointed UK Chancellor of the Exchequer Rishi Sunak tore up the fiscal rulebook and unveiled a spend-heavy UK budget, announced just after the Bank of England delivered an emergency interest-rate cut. Our David Zahn, Head of European Fixed Income, weighs in, noting that the UK government is one of the first to provide a coordinated fiscal and monetary policy response to battle the economic impact of the coronavirus.

What’s Next for European Monetary Policy?
Fixed Income

What’s Next for European Monetary Policy?

David Zahn, Head of European Fixed Income, shares his macroeconomic outlook for the region. He weighs in on why the European Central Bank (ECB) could remain accommodative.

On My Mind: The Fed Responds
Fixed Income

On My Mind: The Fed Responds

The US Federal Reserve surprised markets on Tuesday with an interest-rate cut, but will it restore investor confidence? Franklin Templeton Fixed Income CIO Sonal Desai shares her initial reaction.

On My Mind: Oops! They QE’d Again
Fixed Income

On My Mind: Oops! They QE’d Again

The US Federal Reserve (Fed) has gone back to expanding its balance sheet. Some claim that quantitative easing (QE) is back; the Fed denies it. What we call it isn’t the point, says Sonal Desai, Franklin Templeton Fixed Income CIO—what matters are the implications of this “permanently loose” policy stance for asset prices, investment strategy and market volatility.