Insights

Key Insights Global high yield bonds offer potentially attractive yields, with better value and opportunities in Europe. Default rates are not expected to return to peaks of the past, even if we enter an economic downturn, given strong corporate balance sheets. We believe the asset class is well positioned...

Inflation has been kind of an enigma for the world over the past few years. Policymakers dismissed rapidly rising inflation early on and viewed it as transitory. It was put down to temporary supply constraints, adjusting from the covid pandemic. However, inflation was rising higher and more persistent than initially...

In Brief Equities tend to wake up late to recession risks. A buildup of short-term corporate debt should weigh on profits as borrowing costs rise. It’s probably a good time for investors to stress their cash flow models. Financial markets are sending mixed signals. The US Treasury market, inverted at...

As the US President Joe Biden and House Speaker Kevin McCarthy reach an in-principle agreement to finalise a budget agreement to raise the $US31.4 trillion ($A48.1t) debt ceiling, Stephen Dover, Head of Franklin Templeton Institute presents his views on the current US debt challenge and the long-term implications for...

Andrew Canobi, Director and Portfolio Manager Franklin Templeton Fixed Income,  argues that the debate over the US debt ceiling is a timely reminder of the constraints many developed countries including Australia now face in trying to clean up COVID stimulus measures. "The US is close to hitting its congressionally mandated...

The global financial system nearly collapsed in September 2008 when “globally significant” bank Lehman Bros failed, insurance company AIG (which insured many securities) had to be bailed out and numerous “mergers” were encouraged by panicked regulators. The system didn’t nearly collapse early this year when Silicon Valley Bank (SVB) failed, along with...

Readers of the financial press recently will have noted the term “US debt ceiling” popping up frequently in the market narrative. It is one of those potential events in markets where there is a very, very small probability of a really bad thing happening, but if it does, oh...

Inflation continues to be a key theme and despite its recent peak, may stick around for longer than expected. In the second installment of a two-part series, Elizabeth Moran looks at high yield managed funds to beat inflation. Given persistent inflation and increasing commentary for inflation to be higher for...

Pursuing social and environmental impact alongside financial returns A joint paper from T. Rowe Price by: Matthew Lawton, Portfolio Manager, Global Impact Credit Strategy Hari Balkrishna, Portfolio Manager, Global Impact Equity Strategy David Rowlett, Portfolio Manager, US Impact Equity Strategy Key insights: Our dual mandate is to identify companies that are...

The Australian fixed income landscape has changed with conditions now likely to provide many of the defensive attributes that investors have traditionally expected from the asset class, notes Anthony Kirkham, Head of Investment Management Australia at Western Asset, part of Franklin Templeton. Kirkham says: “The Australian fixed income landscape in...