Asset Class in Focus 10 Dec 18
Convertible bonds: opportunity knocks
Looking past negative headlines regarding tariffs and trade wars, the world is currently seeing healthy albeit slower economic growth and upward pressure on interest rates due to the phasing out of monetary stimulus. Such an environment presents a buying opportunity for Convertible Bonds (CBs). CBs’ equity-like characteristics mean they benefit from economic growth while they are only modestly impacted by rising rates because of their low effective duration, which averages 1.8 years across the asset class.
Events 30 Nov 18
Video: Franklin Templeton on fixed income investing
Ivan Fong, vice president and senior product manager, sees opportunity in local currency EM bonds, but is closely watching trade tensions between China and the US.