Franklin Templeton Warns: No One Is Prepared for Eurozone Debt Crisis 2.0

Sonal Desai, Chief Investment Officer of Fixed Income at Franklin Templeton, warns that no one is currently prepared for Eurozone Debt Crisis 2.0, noting that France's debt level is more than 10 times that of Greece during its crisis, making simple bailout solutions unfeasible. The spread between French and German 10-year government bonds has widened to 154 basis points, the highest level since early October. Franklin Templeton has adjusted its bond portfolios to favor shorter-duration Italian and French assets, while allocating to longer-duration Spanish and German government bonds.