Hasenstab: Prepare for a second great rotation in bond markets

Franklin Templeton's Michael Hasenstab has told Investment Week investors should ready themselves for the second phase of the ‘great rotation' seen in some bond markets last year.

In an exclusive interview, the manager (pictured) said investors “should worry about rising rates” and seek to diversify their bond exposure. However, he acknowledged the global market currently offers none of the “extreme” opportunities which characterised some of his best calls of recent years. Hasenstab, CIO of the Templeton global bond group which runs around £110bn in assets, repeated a call for investors to shift fixed income assets from their home markets – namely core government bonds such as gilts and treasuries – and instead look for opportunities globally. “Last year, treas...