Skip to main content
Sponsored by ?

This article was paid for by a contributing third party.More Information.

Navigating volatile markets: a rule book for fixed income investors

Open book with fanned pages in sharp focus against a blurred library bookshelf background

Franklin Templeton investment experts say “now is a good time to exercise thoughtful diversification”. In this latest paper, they use a framework measuring 20 indicators to assess investment in US Treasuries, US credit, European debt and emerging markets debt.

For US Treasuries, as the yield curve steepens, the experts recommend a cautious approach focusing on the short-to-intermediate part of the curve. Due to volatile inflation, concern around future foreign demand and the rising deficit, they prefer inflation-linked bonds.

Franklin Templeton investment experts also believe it is time to stop thinking about fixed income solely through the prism of the US Treasury market.

Recently widening credit spreads present opportunities for US credit bond investors – and Franklin Templeton is also optimistic on emerging markets debt, which is due to resilience to external shocks and yield advantages. “However, it’s worth noting that this resilience was far from enough to offset equity losses.”

On European debt, however, Franklin Templeton investment experts are neutral due to fiscal uncertainties, with a need for higher yields to attract investment.

Download the white paper, Navigating volatile markets: a rule book for fixed income investors

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here