Franklin Corporate Ladder 1-3 Year SMA Q1 2026 Commentary
Franklin Templeton·2026-06-28·via All Articles on Seeking Alpha
Summary
From late-February, the war in the Middle East dominated much of the news flow and financial market sentiment, initially seeing a traditional risk-off move in both the US dollar and US bonds.
Security selection by sector lifted relative performance over the period, led by selection in the insurance and banking sectors.
Yield curve positioning lifted returns for the quarter due, in part, to an underweight position in bonds with 2 years to maturity.
Investment-grade corporate bond spreads have moved tighter year-to-date, driven by investor demand for historically attractive yields and diminished market concerns regarding US trade policies.
Franklin Templeton maintains a neutral stance on IG credit while highlighting potential concerns on current valuation levels.
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Key Takeaways
• Markets: From late-February, the war in the Middle East dominated much of the news flow and financial market sentiment. The reaction in markets has evolved, initially seeing a traditional risk-off move in both the US
