All Fixed Income articles – Page 12
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White papers
Asset Allocation Committee Outlook: 1Q 2024
“One of the lessons to take from 2023 is that markets can defy apparently soft fundamentals for much longer than one might expect.”
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White papers
Natural Selection: Evaluating Debt-for-Nature Swaps
Investors are becoming increasingly aware of the importance of biodiversity and the urgency of preserving our planet’s natural capital—the stock of natural resources that underpin our economy and society, including minerals, soils, air, water and all living organisms. In response, bond issuers are launching more conservation-linked bond structures that can help indebted developing countries protect their vulnerable ecosystems. These structures require careful evaluation.
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White papers
Global fixed income outlook 2024: opportunity knocking
The world appears to have moved beyond the height of interest rate hikes, inflation and economic acceleration.
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White papers
Central Bank Watch: Hold your horses
The Franklin Templeton Fixed Income (FTFI) Central Bank Watch is a qualitative assessment of the central banks for the Group of Ten (G10) nations plus two additional countries (China and South Korea).
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White papers
High yield credit outlook: Favorable dynamics persist
Brandywine Global: While tight monetary policy may become more problematic for the economy over time, many high yield bond issuers are focused on improving credit quality. This may put them in a better position to endure an economic downturn.
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White papers
A Compelling Value Proposition in EM IG Corporate Debt
Elevated yields, improving credit quality and lower interest rate risk are presenting a strong case for EM investment grade corporate debt—especially in a soft landing scenario.
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Video
European High Yield: Can the Winning Streak Continue?
Craig Abouchar, Managing Director, European High Yield, discusses the key factors that have made European high yield bonds compelling this year—and explores the outlook for the asset class against an uncertain macroeconomic backdrop.
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White papers
European leveraged loans outlook: Embracing the unknown
Despite another challenging year for financial markets, European leveraged loans bucked the trend generating healthy double-digit returns. Here, we explore some of the key drivers behind the defensive nature of the loan universe and ask: through the many unknowns on the horizon, could European loans provide solace for investors in the year ahead?
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White papers
Private Credit Outlook: Evolution and Opportunity
Private credit has in a little more than a decade evolved from a niche asset class to a key component of a diversified investment portfolio. We think it will be even more important in 2024 as banks’ reluctance to lend widens the opportunity set for investors.
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White papers
Fixed Income Investment Outlook: 1Q 2024
Amid slower economic growth and more benign monetary policy, we believe that this year bond prices will be driven less by inflation and central bank policy and more by economic growth dynamics. Rather than seek to play the timing of interest rate reductions, we think it will be more effective to focus on the ultimate destination of rates and adapt portfolios accordingly.
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White papers
The case for bank credit/AT1s over equity
It’s been a really great couple of years for the banking sector – after a decade or more of zero interest policy when every year that went by bank margins fell, suddenly banks have lots of margin to play with as interest rates have risen to more normalised levels.
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White papers
EMD outlook 2024: Navigating a bifurcated universe
In this outlook, we outline the global backdrop that emerging markets (EMs) can expect in 2024, including a more dovish US Federal Reserve (Fed), a more supportive backdrop for EM currencies and weak global growth.
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White papers
Outlook 2024: Prepare for changes in the investing climate
Heading into 2024, it is difficult to remember another time when the outlook was so uncertain. Recession or expansion? Inflation or deflation? Higher interest rates for longer or central banks preparing to pivot? Take your pick and you will find a pundit arguing for each scenario as if it was a foregone conclusion.
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White papers
Fixed-Income Outlook 2024: Bonds Roar Back
The tide has turned for bonds. Here’s what we think is in store for 2024.
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White papers
The what, why and how of the global fixed income and municipal markets
The evolving fixed income market environment - Key 2023 themes
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White papers
Taxable Municipal bonds: yields moving higher
The taxable municipal bond market experienced negative third quarter returns in sympathy with U.S. Treasuries. With the U.S. Federal Reserve (Fed) nearing the end of its rate hike cycle, higher yields have increased future expected returns, given yields are now at levels not seen over the last decade. We believe portfolios should be rewarded by assuming a modestly longer duration profile while adding credit risk.
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White papers
Emerging market debt outlook: Beyond headline events
According to Franklin Templeton Fixed Income, the impact of global events on emerging market risk sentiment may continue to divert capital away from the asset class, especially when the risk-free rate offers a substantial yield. However, as we move further through the US Federal Reserve cycle over the next year, we should see capital return to the asset class.
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White papers
Long-term Capital Market Expectations: Higher yields lift all boats
The Franklin Templeton Investment Solutions team’s capital market expectations (CME) is designed to provide annualized return expectations over a longer-term horizon, typically viewed as 10 years.
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White papers
The Monroe Doctrine at 200: Its New Implications for LatAm Assets
We explore the potential evolution of the relationships between Latin American countries and the U.S.
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Podcast
Fixed on ESG, Ep. Ep. 20 – COP28: Dissecting Climate Progress and Pledges
A review of the takeaways from COP28, the United Nations Climate Change Conference, hosted in Dubai, UAE.