All Fixed Income articles – Page 52
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White papers
The Case for Investing in Senior Secured Bonds
From capital structure seniority and high historical recovery rates, to lower interest rate sensitivity and compelling yields, global senior secured bonds offer a number of potential advantages.
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Podcast
The Inflation Playbook
How does today’s inflation compare to history and how are higher CPI numbers impacting economic growth? What can central bankers do to combat inflation? And how can investors navigate this environment? Dr. Christopher Smart weighs in on these questions and more.
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White papers
Spotlight on Fixed Income: Looking beyond the uncertainty
There is no doubt that investors today face an exceptionally tricky environment, with a host of issues clouding the outlook for global growth.
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White papers
On my mind: The Fed has kept monetary policy too loose for too long
Inflation at 40-year highs poses the toughest of policy challenges. Yet America’s Federal Reserve (Fed) still hopes to meet it with an easy solution: bring the policy rate close to 3%, and as adverse supply shocks fade inflation will revert to the Fed’s 2% target. No need for a sharp monetary tightening à la Paul Volcker.
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White papers
Market snapshot: Recession fears grow as central banks step up inflation fight
The Fed cut rates by half a percentage point for the first time in two decades. The yield on US 10-year treasuries edged above 3% this week as traders reacted to tightening monetary policy and ongoing uncertainty.
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White papers
Plus and minus: can QT annihilate QE (and other anti-inflation questions for financial markets)
Fiorino queries whether investors should expect an equal-and-opposite reaction as central banks release the anti-QE solution into the real world…
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White papers
Municipal bonds: an attractive entry point
Municipal bonds have had a rocky start to 2022, but credit quality remains strong. With aggressive rate increases and a shrinking balance sheet, the U.S. Federal Reserve is signaling a quicker move toward a neutral policy rate.
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White papers
Approaching uncertainty with confidence in emerging markets fixed income
The war in Ukraine has added continued volatility to emerging markets fixed income assets. According to our latest study, institutional investors around the world are wary of the war’s market and economic impacts but remain optimistic for the months ahead.
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White papers
Inflation: Higher but Not Forever
High inflation and the consequences of attempts to curb it are a top concern for today’s investors. We believe that, by hiking rates, policymakers can eventually slow demand enough to subdue price pressures, even in an environment of constrained supply. But this process takes time.
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White papers
On My Mind: Overdue reality check for Fed and markets has barely begun
Franklin Templeton Fixed Income Chief Investment Officer Sonal Desai believes Investors’ expectations that interest rates will not rise much may be very misguided.
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White papers
Four Key Findings about the U.S. Yield Curve
The U.S. yield curve attracts a great deal of attention when it is close to inverting given its historical connection with U.S. recessions as well as sharp selloffs in equity and credit markets.
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Podcast
Fixed on ESG, Ep. 2
Food prices have been rising globally for some time now. While the Russia/Ukraine conflict has exacerbated food instability, many other factors have also come into play including the COVID-19 pandemic, increases in demand from growing populations, extreme weather events, among others.
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White papers
Navigating an inflationary environment in US and global equities
Forty years … That’s how long it has been since the Great Inflation, which lasted from 1965 to 1982 and saw inflation in the US climb as high as 13.5%. According to Michael Bryan of the Federal Reserve Bank of Atlanta, it was the “defining macroeconomic event of the second half of the twentieth century … there were four economic recessions, two severe energy shortages, and the unprecedented implementation of wage and price controls”.
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Podcast
All the Credit, Ep. 27
Although the traditional asset allocation portfolio mix of 60% stocks and 40% bonds has been a widely adopted investment approach that has spanned decades, a lower interest rate environment coupled with the underperformance of equities and bonds, has investors questioning the validity of the 60-40 asset allocation model. While we also see this portfolio structure as flawed, it’s not for the reasons that others have suggested.
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White papers
Credit: This Time Is Different?
With market volatility at the extreme, Franklin Templeton Investment Solutions looks back at history to see what to expect from certain fixed income asset classes, noting that history may not repeat.
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White papers
Climate Transition risk in Fixed Income Insurance Investment
For insurance portfolios, for reducing the carbon footprint given the limited turnover possibilities, we adopt a gradial asset rotation approach, exiting from poor ESG-rated assets gradually while pushing for change in activist approach via our engagement activities. From an insurance investment standpoint, the expectations in terms of transition risk will most probably result in heightened pressure on prices of high carbon footprint assets.
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White papers
Staying Buoyant with Floating-Rate Securitized Products
Investors flock to floating-rate assets during periods of rising interest rates for two primary reasons: they stand to benefit from increasing coupon payments as policy rates rise, and the assets’ minimal duration risk provides insulation during periods of volatility in long-duration assets. Judging by the $53 billion of inflows since the start of 2021, investors are often steered towards leveraged loans when it comes to floating-rate assets.
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White papers
Are We There Yet?
Regardless of whether we get a hard or soft landing, we likely face a steep approach to the runway in trying to “land this plane.” The question is, how well consumers and companies absorb the slowdown, and whether sentiment is already bearish enough to create long-term value.
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White papers
Relative value in EM local markets
Emerging market (EM) core inflation has risen by less than US inflation, in part due to weak economic conditions within EM and proactive EM central banks. The acceleration of interest rate hikes by EM central banks has driven up real interest rate differentials between EM and the US, making ...