Rising interest rates are not bad for all fixed income assets

ON BONDS

Templeton's Michael Hasenstab says there are still opportunities in global fixed income despite interest rate hike forecasts.

The opportunity set in global fixed income investing and investing in emerging markets has evolved during the last two decades. The number of countries that have opened up their capital markets has increased dramatically. The number of instruments available to us in each country has expanded, unlocking new opportunities and allowing more precise risk exposures to be held. We are aware of the massive capital flows in EMs, and we are wary when an asset class becomes popular. That said, a lot of the flows into this asset class are justified by strong fundamentals – levels of indebtedness in...