Municipal Bonds

There are not many attractive opportunities in the US large-cap space. History suggests the market is overdue for a correction.

We examine how a potentially complex bond market in 2025 could still offer opportunities in high-yield bonds, municipal bonds, and inflation-protected securities.

The U.S. economy and stock market are entering 2025 from a position of strength, but risks of volatility—especially pertaining to policy—are much higher compared to last year.

The Santa Claus rally that started a few weeks back continued as the market logged its 53rd record high for 2024. While the Scrooges bemoaned inflation and tariffs, other investors embraced the strong economic data and loaded their sleds with market returns.

The surprise nomination of Robert F. Kennedy Jr. to head healthcare policy in the U.S. caused substantial volatility in November. But despite heightened uncertainty, the sector’s long-term outlook appears intact, say Portfolio Managers Andy Acker and Dan Lyons – giving investors a potential opportunity to invest at attractive valuations.

When the ECB’s rate-cutting cycle ends, should the neutral rate be far higher than pre-pandemic? Not in our view.

Why hasn’t tighter monetary policy caused a recession? One reason: federal budget deficits have been huge.

Last week we processed robust economic data and growing clarity on Federal Reserve policy, instilling a consensus view for a strong market that is now well reflected in positioning.

We believe municipal bonds currently offer a compelling balance of risk and reward for investors in higher tax brackets.

Whether you want to buy or rent, finding an affordable, comfortable home can be extremely difficult, if not impossible.

Just a few short years (months?) ago, few would have believed it possible. But it happened: Bitcoin has traded above $100,000 for the first time ever.

Five of Franklin Templeton’s specialist investment managers provide their annual outlooks for the global economy and key asset classes, including global equities; global fixed income; global infrastructure; the macro fixed income environment; municipal bond market; high yield bond market; small cap equities; U.S. dollar; U.S. economy; and U.S. equities.

The bond market is caught between the Federal Reserve's plans to cut interest rates and the risk of higher inflation and federal debt levels.

We compare investor risk-taking behaviors at the start of the bull market with those nearly 16 years later. We also analyze key market areas that can offer essential diversification to help manage overall portfolio risk.

While politics garner headlines, fundamentals drive the market over the long term.

The 2024 wild ride has proven to be a continuation of last year’s.

International markets are expected to clear the hurdles of uncertain trade policy, tighter fiscal policy and slower than average economic growth to support solid overall returns.

You're interested in investing in municipal bonds, but which type—general obligation or revenue—is best for you? We break it down.

Wholesale elimination of tax exemption isn’t likely, but certain types of muni bonds could be targets.

The U.S. economy faces growing risks, from a surging Federal deficit to geopolitical uncertainty. Investors must assess how these factors could ignite market instability and take proactive steps to safeguard their portfolios.

Some post-election stock market excitement has receded, but the story of strong breadth—which predated the election—has not changed and continues to support the market for now.

Actively managed ETFs are among the fastest-growing products in the broader ETF space.

Municipal bonds broke their winning streak in October, posting negative total returns alongside broader fixed income assets.

One of the core principles of a long-term dividend portfolio is to invest in companies that are integral to society and will be for many years to come. Transportation falls into that category.

U.S. rate cuts of up to 200bps are anticipated by the end of 2025 but with significant further downside if recession risks materialize.

Your fixed income strategy does not necessarily need to be adjusted based on every personnel or environmental change.

Volatility is likely here to stay until we get some level of clarity on the political landscape.

Investors have been married to their money market funds for the better part of the last two years.

Better than expected economic data drove interest rates higher, changing the market narrative and contributing to an equity market pullback early in the month. This unraveled expectations of further rate cuts by the Federal Reserve (Fed) and resulted in real rates moving higher. The 10-year Treasury has moved up 48 basis points, ending the month at 4.27%.

Our analysis explores how potential post-election tax policy changes might impact dividends, capital gains, and municipal bonds and how investors might prepare for different election outcomes.

The most common questions we’ve been asked as the election approaches are generally about the Federal debt and deficits. Many investors worry about a looming “day of reckoning” for US debt. They fear the US’s fiscal imprudence will eventually force a sudden and dramatic repricing of US debt. In this insight, we explore the modern history of US debt to GDP across several Presidential administrations and outline why investors should not be worried about a financial apocalyptic abyss.

Although investing in in-state municipal bonds may have tax advantages, there can be good reasons to buy out-of-state munis.

Integrating the physical toll of climate change helps investors spot key risks—and opportunities.

State and municipal budgets are adjusting to life after pandemic interventions.

Yields have risen from the dead since their recent lows in mid-September presenting investors with an opportunity that many were scared had disappeared following the FOMC’s 50 basis point rate cut at their last meeting.

Earnings season is shaping up to be relatively strong so far, but the market will likely continue to shift focus to an increasingly murky sales picture.

Investment grade bonds have long been synonymous with a “core” fixed income allocation, but we believe a flexible strategy also belongs in most bond portfolios, as managers can adjust their exposure based on market conditions.

Normalization seems to be in its final stage, with the Fed expected to continue cutting rates.

With the election looming, investors should prepare for potential changes in tax policies, particularly given the impending sunset of the 2017 Tax Cuts and Jobs Act.

The Internal Revenue Service has announced new tax brackets for 2025, making now an ideal time to revisit the benefits of muni bond ETFs.

The regulatory outlook is a question of direction more than extent.

The FOMC lowered the Fed Funds rate by 50 basis points at their September meeting. This was the first cut in over four years and the start of what is expected to be a multi-year easing cycle.

The tendency to blindly follow these rules has led investors towards prematurely de-risking and over-estimating the likelihood of recession.

Markets changed character to broad-based optimism relating to the economy. The economic picture began to come into focus with inflation continuing to moderate as the economy maintains steady growth and employment. The result was a stark turnaround for economically integrated or interest rate sensitive assets, which resulted in a great quarter for diversified multi-asset portfolios. New Frontier sets a major milestone in Q4, marking 20 years of investing at the end of October.

Municipal bonds bucked the seasonal trend and posted strong performance in September.

This unique bull market is still young relative to history and, for now, supported by relatively healthy breadth and broadening participation.