Higher Interest Rates: New Opportunities in Bonds & Equities? | Allocation Views
It is a compact run-through of how one large manager is framing allocation decisions in a higher-rate environment, including the diversification case for insurance-linked and private market assets. Advisors can compare that framing against their own portfolio construction and client conversations.
Summary
By the alternatives in wealth deskA Franklin Templeton video in its Macro Moments: Allocation Views series, in which Michael Browne of the Franklin Templeton Institute and Lisa Wang of Franklin Templeton Investment Solutions discuss the outlook for rates, inflation and global asset allocation. The conversation covers government bond yields in US Treasuries and UK gilts, why the equity-bond relationship is changing for 60/40 portfolios, and where alternatives such as catastrophe bonds, private infrastructure and private credit fit into portfolio construction. It closes with the team's equity views across the US, emerging markets, Japan and the UK, a shift in AI exposure from infrastructure spending toward adoption, and the ri
- The team argues inflationary pressures may prove less persistent than markets expect, with implications for central bank policy.
- Higher yields are described as creating opportunities in US Treasuries and UK gilts.
- The traditional relationship between equities and bonds is changing, which the team says affects portfolio construction.
- Catastrophe bonds, private infrastructure and private credit are presented as sources of diversification, and AI opportunities are described as shifting from infrastructure spending toward adoption and productivity gains.
Chapters
From the publisher’s description| Time | Chapter | Length |
|---|---|---|
| Higher Rates and the Global Investment Outlook | 1 min | |
| Asset Allocation: Equities and Bond Opportunities | 1 min | |
| Inflation and the Interest-Rate Outlook | 2 min | |
| US Midterms and Market Implications | 1 min | |
| US Treasuries and UK Gilts: Finding Value | 2 min | |
| Portfolio Diversification Beyond the 60/40 | 1 min | |
| Catastrophe Bonds as Alternative Investments | 1 min | |
| Private Markets and Portfolio Construction | 1 min | |
| Equity Market Outlook: Why We Remain Constructive | 1 min | |
| AI Investing: From Infrastructure to Adoption | 2 min | |
| Global Equity Allocation: US, EM and Japan | 1 min | |
| UK Equities: What Could Improve the Outlook? | 1 min | |
| Key Investment Risks: Inflation and Central Banks | 1 min | |
| Positive Real Rates and Economic Growth | 1 min | |
| Higher Rates and the Future of Portfolio Construction | 1 min |
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