The Fixed Income Channel

The Great Awakening in Muni Bonds

The changing demographics of the municipal bond market in recent years, coupled with their reliable tax-free-income stream, has made munis a compelling core allocation for today’s fixed-income investors.

Global Economic Perspective: August

In this month’s Global Economic Perspective, Franklin Templeton Fixed Income Group takes a look at recent US economic data, and increased skepticism among many market participants about whether the Federal Reserve will implement another increase in interest rates before the end of the year.

The Role of REITs in a Diversified Portfolio

REITs are vulnerable to an increase in interest rates or an economic contraction. If you have been thinking of increasing your allocation to REITs to generate more cash flow, this new research – and current valuations – should serve as a cautionary warning.

The US Debt Ceiling Saga Returns

Once again, the US debt ceiling is in focus. Since March, the US Treasury has been employing “extraordinary measures” to fund the US government, such as halting contributions to certain government pension funds and borrowing money set aside to manage exchange rate fluctuations. But those measures are expected to run out this fall.

China: When Atlas Shrugs, Markets Shiver

The use of credit to fuel growth in China is weakening, a trend that has begun to depress demand for imports. Given China’s seminal role as an engine of global growth, the ripple effects will weigh on growth prospects for the countries most exposed to Chinese demand, including those in Asia and Latin America.

On My Radar: Doesn’t Matter, Doesn’t Matter, Matters!

My thinking is impatient and mostly critical as I sift through research each week. I’m sure my “get to the point” personality frustrates my co-workers and I’m sure at times my beautiful wife. It’s a personality flaw, I know; but hey, I’m just not sure any amount of therapy can help.

Policy Antidotes to Rising Drug Prices

Pharmaceutical costs represent about 10% of total U.S. health care expenditures, or about $325 billion each year.

Exclusive Interview: How Alex Green Beat the Market 16 Years Straight

For more than a decade and a half, my friend Alexander Green has been educating and entertaining investors as editor of numerous popular newsletters, many of which I’ve cited in my own writing.

Best Performing Asset Class Over the Past 10 Years?

The dramatic recovery in fixed income markets, which began in Q1, persisted throughout the second quarter. Investors increasingly sought safe haven investments in light of geo-political uncertainty and perceived overvaluation in equity markets more broadly.

Seven Reasons Why Advisors Should Use Bond Ladders

I often hear criticisms about the use of bond ladders. Whenever the criticism comes from professional advisors, however, I’ve noticed it generally involves firms that use only bond mutual funds or ETFs instead of individual, tailored bond portfolios, whether in the form of a bond ladder or not. Unfortunately, much – if not all – of this criticism is based on falsehoods and the conflicts that can arise when advisors employ only mutual funds and ETFs.

Making Sense of Current Equity and Bond Pricing

Jihan Diolosa, Associate Director of our UK Institutional team, poses questions to our lead multi-asset portfolio managers based on some of the key issues keeping investors awake at night.

Second Quarter 2017 Economic & Capital Market Summary

The early optimism that President Trump would be able to reinvigorate domestic economic growth has faded as Congress struggled to pass health care legislation and confusion exists around Trump’s political agenda.

Banking on Change

A review of last month’s market-moving events across countries and asset classes

Why Rates Are Not Moving

Whatever happened to the increase in interest rates that was supposed to occur? Russ explains.

Foregone Conclusions Become Well Known Facts

We’ve heard Warren Buffett continue to repeat an important phrase, “what the wise man does in the beginning, the fool does in the end.” This begs the question, when does a foregone conclusion become what we call “a well-known fact”?