Are bonds finally worth a fresh look? In this Australian Investors Podcast episode, Owen Rask sits down with Richard Rauch from Franklin Templeton to unpack what rising yields mean for investors—and why a bond’s starting yield matters more than the last few years of returns.
Richard explains the relationship between bond prices and yields, the role of duration, and why higher yields can look appealing to new buyers while leaving existing holders with short-term losses. They revisit the difficult bond market of 2022, then ask whether government bonds can still provide diversification when portfolios come under pressure.
The conversation moves from interest-rate risk to credit risk: what are investors actually paid to take on when they reach for higher-yielding corporate debt? Richard also lifts the lid on bond index funds. Their holdings, country exposure and duration can change as issuers borrow more; the label alone may not tell you whether a fund suits your portfolio.
Finally, Owen asks for a practical first-pass checklist when assessing a fixed-income fund. Richard points to the fact sheet, yield to maturity, investment objective, benchmark, sector exposures and past behaviour during market stress. It is a useful starting point for asking better questions—not a shortcut to predicting returns or choosing a product.
