NPORT-EX 1 FIST_4337.htm
Franklin Investors Securities Trust
Statement of Investments, July 31, 2019 (unaudited)
Franklin Adjustable U.S. Government Securities Fund
    Principal
Amount 		  Value
  Mortgage-Backed Securities 93.2%      
a Federal Home Loan Mortgage Corp. (FHLMC) Adjustable Rate 19.2%      
 
FHLMC, 2.475%, (12-month USD LIBOR +/- MBS Margin), 5/01/45
$12,512,697    $12,743,282
 
FHLMC, 4.101%, (12-month USD LIBOR +/- MBS Margin), 9/01/35
 5,022,947     5,192,715
 
FHLMC, 4.186% - 4.363%, (6-month USD LIBOR +/- MBS Margin), 4/01/36 - 1/01/37
 1,490,641     1,545,330
 
FHLMC, 4.247% - 4.584%, (12-month USD LIBOR +/- MBS Margin), 1/01/36 - 5/01/38
 6,526,326     6,831,119
 
FHLMC, 4.59%, (12-month USD LIBOR +/- MBS Margin), 1/01/36
 2,739,314     2,856,324
 
FHLMC, 4.596% - 4.625%, (12-month USD LIBOR +/- MBS Margin), 2/01/36 - 10/01/38
 5,796,904     6,088,886
 
FHLMC, 4.625%, (12-month USD LIBOR +/- MBS Margin), 11/01/37
 2,848,777     2,994,459
 
FHLMC, 4.662%, (US 1 Year CMT T-Note +/- MBS Margin), 3/01/35
 3,405,137     3,590,521
 
FHLMC, 4.63% - 4.678%, (12-month USD LIBOR +/- MBS Margin), 6/01/35 - 11/01/41
 6,439,847     6,765,466
 
FHLMC, 4.57% - 4.694%, (US 1 Year CMT T-Note +/- MBS Margin), 8/01/33 - 4/01/37
 4,669,294     4,919,549
 
FHLMC, 4.707%, (12-month USD LIBOR +/- MBS Margin), 9/01/37
15,712,231    16,367,063
 
FHLMC, 4.697% - 4.724%, (12-month USD LIBOR +/- MBS Margin), 6/01/35 - 12/01/37
 6,423,786     6,768,379
 
FHLMC, 4.697% - 4.737%, (US 1 Year CMT T-Note +/- MBS Margin), 9/01/35 - 6/01/37
 6,409,905     6,761,897
 
FHLMC, 4.768%, (12-month USD LIBOR +/- MBS Margin), 7/01/35
 6,772,630     7,143,583
 
FHLMC, 4.746% - 4.772%, (12-month USD LIBOR +/- MBS Margin), 1/01/36 - 5/01/40
 6,454,061     6,797,144
 
FHLMC, 4.774% - 4.80%, (12-month USD LIBOR +/- MBS Margin), 12/01/35 - 4/01/40
 5,788,633     6,087,566
 
FHLMC, 4.808%, (12-month USD LIBOR +/- MBS Margin), 10/01/41
 3,095,844     3,259,759
 
FHLMC, 4.817%, (12-month USD LIBOR +/- MBS Margin), 11/01/40
 3,403,670     3,590,615
 
FHLMC, 4.807% - 4.856%, (12-month USD LIBOR +/- MBS Margin), 8/01/34 - 3/01/38
 6,339,797     6,698,337
 
FHLMC, 4.75% - 4.874%, (US 1 Year CMT T-Note +/- MBS Margin), 4/01/34 - 11/01/36
 6,484,304     6,849,650
 
FHLMC, 4.917%, (12-month USD LIBOR +/- MBS Margin), 6/01/37
 6,457,632     6,845,125
 
FHLMC, 4.966%, (12-month USD LIBOR +/- MBS Margin), 3/01/37
 1,770,573     1,872,516
 
FHLMC, 5.034%, (12-month USD LIBOR +/- MBS Margin), 1/01/37
 3,137,603     3,346,821
 
FHLMC, 6.01%, (US 1 Year CMT T-Note +/- MBS Margin), 8/01/34
 1,785,329     1,955,560
        137,871,666
a Federal National Mortgage Association (FNMA) Adjustable Rate 73.9%      
 
FNMA, 2.191%, (12-month USD LIBOR +/- MBS Margin), 3/01/46
 7,898,554     8,076,901
 
FNMA, 2.33%, (12-month USD LIBOR +/- MBS Margin), 4/01/45
 4,834,115     4,948,269
 
FNMA, 2.208% - 2.869%, (11th District COF +/- MBS Margin), 4/01/20 - 11/01/40
 4,824,639     4,837,393
 
FNMA, 3.405%, (11th District COF +/- MBS Margin), 4/01/34
16,484,131    16,796,186
 
FNMA, 3.348% - 4.092%, (6-month USD LIBOR +/- MBS Margin), 6/01/21 - 3/01/38
 6,713,815     6,890,958
 
FNMA, 4.142%, (6-month USD LIBOR +/- MBS Margin), 12/01/34
 3,563,265     3,685,239
 
FNMA, 3.602% - 4.16%, (12-month USD LIBOR +/- MBS Margin), 6/01/33 - 10/01/37
 6,662,200     6,896,548
 
FNMA, 4.093% - 4.163%, (6-month USD LIBOR +/- MBS Margin), 9/01/23 - 7/01/37
 6,742,741     6,976,272
 
FNMA, 3.115% - 4.18%, (1-month USD LIBOR +/- MBS Margin), 10/01/26 - 10/01/34
   375,470       380,495
 
FNMA, 4.163% - 4.227%, (6-month USD LIBOR +/- MBS Margin), 12/01/24 - 8/01/37
 6,873,850     7,117,481
 
FNMA, 4.167% - 4.232%, (12-month USD LIBOR +/- MBS Margin), 7/01/33 - 2/01/39
 6,913,206     7,174,626
 
FNMA, 4.233% - 4.279%, (12-month USD LIBOR +/- MBS Margin), 7/01/33 - 7/01/38
 6,635,190     6,894,650
 
FNMA, 4.234% - 4.289%, (6-month USD LIBOR +/- MBS Margin), 10/01/22 - 2/01/37
 6,530,604     6,772,585
 
FNMA, 4.28% - 4.325%, (12-month USD LIBOR +/- MBS Margin), 9/01/32 - 10/01/38
 6,763,926     7,036,833
 
FNMA, 4.341%, (12-month USD LIBOR +/- MBS Margin), 2/01/36
 5,385,756     5,601,765
 
FNMA, 4.325% - 4.345%, (12-month USD LIBOR +/- MBS Margin), 3/01/33 - 8/01/39
 6,351,511     6,628,411
 
FNMA, 3.35% - 4.351%, (US 1 Year CMT T-Note +/- MBS Margin), 1/01/21 - 11/01/44
 6,714,023     6,837,291
 
FNMA, 4.346% - 4.383%, (12-month USD LIBOR +/- MBS Margin), 6/01/33 - 12/01/43
 5,131,856     5,355,987
 
FNMA, 4.391%, (12-month USD LIBOR +/- MBS Margin), 5/01/39
 5,404,174     5,622,125
 
FNMA, 4.384% - 4.41%, (12-month USD LIBOR +/- MBS Margin), 11/01/32 - 9/01/37
 4,586,485     4,796,547
Quarterly Statement of Investments  |  See Notes to Statements of Investments.  |  1
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Adjustable U.S. Government Securities Fund (continued)
    Principal
Amount 		  Value
  Mortgage-Backed Securities (continued)      
a Federal National Mortgage Association (FNMA) Adjustable Rate (continued)      
 
FNMA, 4.417%, (12-month USD LIBOR +/- MBS Margin), 3/01/37
 $3,316,546     $3,463,784
 
FNMA, 4.41% - 4.425%, (12-month USD LIBOR +/- MBS Margin), 8/01/33 - 8/01/37
 5,912,321     6,199,568
 
FNMA, 4.426% - 4.442%, (12-month USD LIBOR +/- MBS Margin), 5/01/33 - 9/01/38
 5,239,142     5,484,917
 
FNMA, 4.449%, (12-month USD LIBOR +/- MBS Margin), 2/01/36
 3,502,955     3,667,478
 
FNMA, 4.443% - 4.462%, (12-month USD LIBOR +/- MBS Margin), 5/01/33 - 11/01/39
 6,303,033     6,580,819
 
FNMA, 4.465%, (12-month USD LIBOR +/- MBS Margin), 11/01/34
 3,564,011     3,723,425
 
FNMA, 4.472%, (12-month USD LIBOR +/- MBS Margin), 2/01/36
 3,095,797     3,244,413
 
FNMA, 4.477%, (12-month USD LIBOR +/- MBS Margin), 11/01/42
 9,647,343    10,103,979
 
FNMA, 4.464% - 4.48%, (12-month USD LIBOR +/- MBS Margin), 3/01/33 - 9/01/38
 6,564,801     6,873,836
 
FNMA, 4.485%, (12-month USD LIBOR +/- MBS Margin), 8/01/40
 2,852,493     2,984,691
 
FNMA, 4.29% - 4.495%, (6-month USD LIBOR +/- MBS Margin), 9/01/21 - 8/01/37
 6,889,567     7,149,343
 
FNMA, 4.351% - 4.499%, (US 1 Year CMT T-Note +/- MBS Margin), 8/01/21 - 11/01/37
 6,842,889     7,127,462
 
FNMA, 4.481% - 4.504%, (12-month USD LIBOR +/- MBS Margin), 12/01/32 - 1/01/42
 6,766,145     7,084,807
 
FNMA, 4.504% - 4.514%, (12-month USD LIBOR +/- MBS Margin), 4/01/33 - 3/01/42
 6,336,482     6,642,760
 
FNMA, 4.516% - 4.527%, (12-month USD LIBOR +/- MBS Margin), 9/01/32 - 11/01/42
 6,664,950     6,982,437
 
FNMA, 4.527% - 4.53%, (12-month USD LIBOR +/- MBS Margin), 11/01/32 - 3/01/40
 4,916,733     5,166,186
 
FNMA, 4.53% - 4.532%, (12-month USD LIBOR +/- MBS Margin), 4/01/33 - 9/01/37
 6,032,659     6,299,447
 
FNMA, 4.541%, (12-month USD LIBOR +/- MBS Margin), 11/01/34
 4,533,038     4,751,706
 
FNMA, 4.533% - 4.55%, (12-month USD LIBOR +/- MBS Margin), 11/01/32 - 9/01/40
 5,330,315     5,595,574
 
FNMA, 4.55% - 4.564%, (12-month USD LIBOR +/- MBS Margin), 8/01/33 - 9/01/38
 6,766,081     7,092,860
 
FNMA, 4.564% - 4.573%, (12-month USD LIBOR +/- MBS Margin), 4/01/33 - 11/01/38
 6,841,815     7,172,442
 
FNMA, 4.581%, (12-month USD LIBOR +/- MBS Margin), 10/01/38
 7,174,954     7,506,973
 
FNMA, 4.583%, (12-month USD LIBOR +/- MBS Margin), 4/01/40
 8,772,169     9,218,719
 
FNMA, 4.584%, (12-month USD LIBOR +/- MBS Margin), 9/01/40
 2,797,791     2,943,172
 
FNMA, 4.586%, (12-month USD LIBOR +/- MBS Margin), 10/01/38
 3,512,031     3,690,817
 
FNMA, 4.589%, (12-month USD LIBOR +/- MBS Margin), 5/01/38
 3,881,812     4,073,012
 
FNMA, 4.574% - 4.593%, (12-month USD LIBOR +/- MBS Margin), 4/01/32 - 12/01/39
 6,136,489     6,424,857
 
FNMA, 4.60%, (12-month USD LIBOR +/- MBS Margin), 3/01/35
 6,596,523     6,913,830
 
FNMA, 4.594% - 4.605%, (12-month USD LIBOR +/- MBS Margin), 11/01/32 - 12/01/40
 6,716,723     7,072,806
 
FNMA, 4.50% - 4.613%, (US 1 Year CMT T-Note +/- MBS Margin), 11/01/20 - 7/01/38
 6,866,951     7,176,837
 
FNMA, 4.616%, (12-month USD LIBOR +/- MBS Margin), 1/01/36
 3,244,685     3,422,316
 
FNMA, 4.621%, (12-month USD LIBOR +/- MBS Margin), 1/01/36
 3,665,111     3,835,674
 
FNMA, 4.605% - 4.624%, (12-month USD LIBOR +/- MBS Margin), 4/01/33 - 10/01/38
 5,339,942     5,609,922
 
FNMA, 4.624% - 4.626%, (12-month USD LIBOR +/- MBS Margin), 10/01/33 - 5/01/48
 6,223,369     6,548,584
 
FNMA, 4.632%, (12-month USD LIBOR +/- MBS Margin), 7/01/40
 3,367,831     3,556,058
 
FNMA, 4.628% - 4.634%, (12-month USD LIBOR +/- MBS Margin), 4/01/34 - 9/01/39
 6,469,843     6,794,041
 
FNMA, 4.634%, (12-month USD LIBOR +/- MBS Margin), 8/01/35
 2,851,623     3,000,582
 
FNMA, 4.642%, (12-month USD LIBOR +/- MBS Margin), 1/01/39
 4,793,146     5,020,255
 
FNMA, 4.648%, (12-month USD LIBOR +/- MBS Margin), 2/01/43
 8,305,932     8,667,235
 
FNMA, 4.637% - 4.65%, (12-month USD LIBOR +/- MBS Margin), 1/01/34 - 10/01/40
 5,546,150     5,829,819
 
FNMA, 4.653%, (12-month USD LIBOR +/- MBS Margin), 2/01/42
 3,032,728     3,188,541
 
FNMA, 4.65% - 4.654%, (12-month USD LIBOR +/- MBS Margin), 1/01/33 - 2/01/43
 6,650,776     7,008,518
 
FNMA, 4.657%, (12-month USD LIBOR +/- MBS Margin), 9/01/42
 7,227,401     7,561,477
 
FNMA, 4.664%, (12-month USD LIBOR +/- MBS Margin), 1/01/37
 4,045,875     4,269,943
 
FNMA, 4.676%, (US 1 Year CMT T-Note +/- MBS Margin), 5/01/36
13,738,898    14,500,444
 
FNMA, 4.654% - 4.681%, (12-month USD LIBOR +/- MBS Margin), 12/01/32 - 6/01/38
 6,764,315     7,086,961
  |  2
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Adjustable U.S. Government Securities Fund (continued)
    Principal
Amount 		  Value
  Mortgage-Backed Securities (continued)      
a Federal National Mortgage Association (FNMA) Adjustable Rate (continued)      
 
FNMA, 4.684%, (12-month USD LIBOR +/- MBS Margin), 3/01/41
 $4,261,494     $4,490,149
 
FNMA, 4.687%, (US 1 Year CMT T-Note +/- MBS Margin), 6/01/36
 3,164,057     3,335,502
 
FNMA, 4.613% - 4.688%, (US 1 Year CMT T-Note +/- MBS Margin), 1/01/24 - 7/01/40
 5,600,564     5,856,792
 
FNMA, 4.691%, (12-month USD LIBOR +/- MBS Margin), 6/01/35
 3,122,805     3,295,443
 
FNMA, 4.694%, (12-month USD LIBOR +/- MBS Margin), 7/01/42
 8,123,348     8,506,920
 
FNMA, 4.682% - 4.708%, (12-month USD LIBOR +/- MBS Margin), 2/01/33 - 11/01/42
 6,435,149     6,755,889
 
FNMA, 4.712%, (US 1 Year CMT T-Note +/- MBS Margin), 1/01/38
 3,844,218     4,054,195
 
FNMA, 4.709% - 4.73%, (12-month USD LIBOR +/- MBS Margin), 1/01/33 - 1/01/37
 6,802,240     7,138,854
 
FNMA, 4.689% - 4.733%, (US 1 Year CMT T-Note +/- MBS Margin), 3/01/20 - 9/01/39
 5,443,685     5,703,511
 
FNMA, 3.466% - 4.733%, (US 5 Year CMT T-Note +/- MBS Margin), 5/01/26 - 2/01/30
   107,304       112,719
 
FNMA, 4.73% - 4.739%, (12-month USD LIBOR +/- MBS Margin), 1/01/33 - 8/01/39
 4,809,086     5,066,693
 
FNMA, 4.758%, (12-month USD LIBOR +/- MBS Margin), 5/01/40
 3,122,943     3,296,343
 
FNMA, 4.733% - 4.78%, (US 1 Year CMT T-Note +/- MBS Margin), 11/01/24 - 12/01/40
 6,460,572     6,808,449
 
FNMA, 4.739% - 4.795%, (12-month USD LIBOR +/- MBS Margin), 3/01/32 - 4/01/44
 6,187,823     6,498,201
 
FNMA, 4.796% - 4.82%, (12-month USD LIBOR +/- MBS Margin), 2/01/32 - 5/01/38
 6,030,896     6,354,539
 
FNMA, 4.859%, (12-month USD LIBOR +/- MBS Margin), 5/01/40
 8,007,083     8,428,658
 
FNMA, 4.783% - 4.874%, (US 1 Year CMT T-Note +/- MBS Margin), 12/01/22 - 1/01/40
 6,844,391     7,127,262
 
FNMA, 4.82% - 4.92%, (12-month USD LIBOR +/- MBS Margin), 1/01/33 - 4/01/41
 6,318,721     6,661,214
 
FNMA, 4.923%, (12-month USD LIBOR +/- MBS Margin), 1/01/36
 3,018,565     3,187,285
 
FNMA, 4.923% - 4.976%, (12-month USD LIBOR +/- MBS Margin), 7/01/33 - 3/01/47
 5,933,409     6,271,781
 
FNMA, 3.07% - 5.027%, (US 3 Year CMT T-Note +/- MBS Margin), 6/01/21 - 1/01/35
   597,528       617,764
 
FNMA, 5.033% - 5.516%, (12-month USD LIBOR +/- MBS Margin), 1/01/35 - 4/01/38
 2,769,369     2,929,502
 
FNMA, 4.536% - 5.808%, (6-month USD LIBOR +/- MBS Margin), 11/01/23 - 6/01/38
 3,046,844     3,178,996
 
FNMA, 4.875% - 6.821%, (US 1 Year CMT T-Note +/- MBS Margin), 10/01/22 - 4/01/38
 6,766,601     7,041,323
 
FNMA, 2.87% - 6.989%, (11th District COF +/- MBS Margin), 1/01/20 - 8/01/37
 3,597,527     3,563,552
 
FNMA, 4.469% - 7.67%, (6-month US T-Bill +/- MBS Margin), 12/01/21 - 11/01/34
   185,115       187,744
        530,109,169
a Government National Mortgage Association (GNMA) Adjustable Rate 0.1%      
 
GNMA, 3.75% - 4.125%, (US 1 Year CMT T-Note +/- MBS Margin), 9/20/33 - 5/20/36
   878,823       899,637
 
Total Mortgage-Backed Securities (Cost $669,648,139)
    668,880,472
    Shares    
  Short Term Investments 6.3%      
  Money Market Funds (Cost $35,978,730) 5.0%      
b,c
Institutional Fiduciary Trust Money Market Portfolio, 2.00%
35,978,730    35,978,730
  |  3
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Adjustable U.S. Government Securities Fund (continued)
    Principal
Amount 		  Value
  Short Term Investments (continued)      
  Repurchase Agreements (Cost $9,598,650) 1.3%      
d
Joint Repurchase Agreement, 2.53%, 8/01/19 (Maturity Value $9,599,325)

BNP Paribas Securities Corp. (Maturity Value $8,063,721)

Deutsche Bank Securities Inc. (Maturity Value $1,213,067)

HSBC Securities (USA) Inc. (Maturity Value $322,537)

Collateralized by U.S. Government Agency Securities, 2.50% - 4.575%, 6/12/26 - 2/20/69; and U.S. Treasury Notes, 1.25% - 3.125%, 2/29/20 - 5/15/21 (valued at $ 9,792,939 )
 9,598,650     $9,598,650
 
Total Investments (Cost $715,225,519) 99.5%
    714,457,852
 
Other Assets, less Liabilities 0.5%
    3,357,545
 
Net Assets 100.0%
    $717,815,397
  
See Abbreviations on page 114.
aAdjustable Rate Mortgage-Backed Security (ARM); the rate shown is the effective rate at period end. ARM rates are not based on a published reference rate and spread, but instead pass-through weighted average interest income inclusive of any caps or floors, if applicable, from the underlying mortgage loans in which the majority of mortgages pay interest based on the index shown at their designated reset dates plus a spread, less the applicable servicing and guaranty fee (MBS margin).
bSee  Note 7 regarding investments in affiliated management investment companies.
cThe rate shown is the annualized seven-day effective yield at period end.
dInvestment is through participation in a joint account with other funds managed by the investment manager or an affiliate of the investment manager. At July 31, 2019, all repurchase agreements had been entered into on that date.
  |  4
Franklin Investors Securities Trust
Statement of Investments, July 31, 2019 (unaudited)
Franklin Convertible Securities Fund
    Country Shares   Value
  Common Stocks 0.8%        
  Consumer Discretionary 0.6%        
a
Alibaba Group Holding Ltd., ADR
China     129,089      $22,346,597
  Information Technology 0.2%        
a
Palo Alto Networks Inc.
United States      43,061       9,755,039
 
Total Common Stocks (Cost $18,835,183)
      32,101,636
  Convertible Preferred Stocks 16.0%        
  Consumer Staples 1.6%        
 
Bunge Ltd., 4.875%, cvt. pfd.
United States 630,000   65,205,000
  Health Care 4.8%        
 
Avantor Inc., 6.25%, cvt. pfd., A
United States 820,000   50,249,600
 
Becton Dickinson and Co., 6.125%, cvt. pfd., A
United States 1,120,000   69,048,000
 
Change Healthcare Inc., 6.00%, cvt. pfd.
United States 300,000   16,203,000
 
Danaher Corp., 4.75%, cvt. pfd., A
United States 54,000   61,284,600
          196,785,200
  Industrials 3.8%        
 
Fortive Corp., 5.00%, cvt. pfd., A
United States 34,350   33,556,859
 
Rexnord Corp., 5.75%, cvt. pfd.
United States 1,017,500   60,103,725
 
Stanley Black & Decker Inc., 5.375%, cvt. pfd.
United States 592,000   60,082,080
          153,742,664
  Materials 1.6%        
 
International Flavors & Fragrances Inc., 6.00%, cvt. pfd.
United States 1,192,242   64,106,852
  Utilities 4.2%        
 
American Electric Power Co. Inc., 6.125%, cvt. pfd.
United States 440,000   23,971,200
 
Aqua America Inc., 6.00%, cvt. pfd.
United States 770,000   44,028,600
 
Sempra Energy, 6.00%, cvt. pfd., A
United States 567,500   63,083,300
 
Sempra Energy, 6.75%, cvt. pfd., B
United States 206,000   22,958,700
 
South Jersey Industries Inc., 7.25%, cvt. pfd.
United States 360,000   19,292,400
          173,334,200
 
Total Convertible Preferred Stocks (Cost $609,875,501)
      653,173,916
      Principal
Amount* 		   
  Convertible Bonds 77.9%        
  Communication Services 8.4%        
 
DISH Network Corp., cvt., senior bond, 3.375%, 8/15/26
United States $45,900,000   42,174,665
b iQIYI Inc.,        
 
cvt., senior note, 144A, 3.75%, 12/01/23
China  43,500,000      46,117,264
 
cvt., senior note, 144A, 2.00%, 4/01/25
China  26,000,000      24,807,016
b
Liberty Interactive LLC, cvt., senior bond, 144A, 1.75%, 9/30/46
United States 37,000,000   45,737,180
  Liberty Media Corp.,        
 
cvt., senior bond, 2.25%, 9/30/46
United States  39,000,000      21,337,731
 
cvt., senior note, 1.375%, 10/15/23
United States  21,200,000      25,401,920
Quarterly Statement of Investments  |  See Notes to Statements of Investments.  |  5
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Convertible Securities Fund (continued)
    Country Principal
Amount* 		  Value
  Convertible Bonds (continued)        
  Communication Services (continued)        
 
Weibo Corp., cvt., senior note, 1.25%, 11/15/22
China  $78,000,000      $73,483,410
  Zillow Group Inc.,        
 
cvt., senior note, 2.00%, 12/01/21
United States  34,500,000      40,498,170
 
cvt., senior note, 1.50%, 7/01/23
United States  23,500,000      23,978,653
          343,536,009
  Consumer Discretionary 11.9%        
 
Booking Holdings Inc., cvt., senior note, 0.35%, 6/15/20
United States 35,000,000   50,632,468
 
Ctrip.com International Ltd., cvt., senior note, 1.25%, 9/15/22
China 75,000,000   74,956,125
 
Etsy Inc., cvt., senior note, zero cpn., 3/01/23
United States 40,000,000   78,111,600
b
Liberty Expedia Holdings, cvt., 144A, 1.00%, 6/30/47
United States 52,450,000   52,223,990
b
MercadoLibre Inc., cvt., senior note, 144A, 2.00%, 8/15/28
Argentina 57,000,000   91,490,700
 
RH, cvt., senior note, zero cpn., 6/15/23
United States 56,500,000   55,936,187
  Wayfair Inc.,        
 
cvt., senior note, 0.375%, 9/01/22
United States  36,500,000      50,809,736
 
b cvt., senior note, 144A, 1.125%, 11/01/24
United States  22,000,000      30,294,660
          484,455,466
  Energy 0.6%        
 
Oil States International Inc., cvt., senior note, 1.50%, 2/15/23
United States 28,000,000   24,416,981
  Financials 1.9%        
b
AXA SA, cvt., senior note, 144A, 7.25%, 5/15/21
France 71,500,000   77,679,030
  Health Care 14.1%        
 
Assertio Therapeutics Inc., cvt., senior note, 2.50%, 9/01/21
United States 16,000,000   11,500,756
 
BioMarin Pharmaceutical Inc., cvt., senior sub. note, 1.50%, 10/15/20
United States 28,200,000   30,527,509
 
Clovis Oncology Inc., cvt., senior note, 1.25%, 5/01/25
United States 30,000,000   16,917,681
 
Dermira Inc., cvt., senior note, 3.00%, 5/15/22
United States 41,120,000   35,265,521
b
DexCom Inc., cvt., senior note, 144A, 0.75%, 12/01/23
United States 64,000,000   76,776,320
  Illumina Inc.,        
 
cvt., senior note, 0.50%, 6/15/21
United States  32,500,000      43,336,641
 
b cvt., senior note, 144A, zero cpn., 8/15/23
United States  32,750,000      35,434,227
 
Insulet Corp., cvt., senior note, 1.375%, 11/15/24
United States 51,300,000   74,581,739
 
Intercept Pharmaceuticals Inc., cvt., senior note, 2.00%, 5/15/26
United States 21,000,000   18,522,453
  Jazz Investments I Ltd.,        
 
cvt., senior note, 1.875%, 8/15/21
United States  35,000,000      35,811,286
 
cvt., senior note, 1.50%, 8/15/24
United States  39,750,000      39,077,012
 
Neurocrine Biosciences Inc., cvt., senior note, 2.25%, 5/15/24
United States 44,750,000   64,510,866
 
Novavax Inc., cvt., senior note, 3.75%, 2/01/23
United States 29,000,000   11,600,000
 
NuVasive Inc., cvt., senior note, 2.25%, 3/15/21
United States 12,000,000   14,462,474
 
Sarepta Therapeutics Inc., cvt., senior note, 1.50%, 11/15/24
United States 30,250,000   66,307,395
          574,631,880
  Industrials 1.0%        
b
Fortive Corp., cvt., senior note, 144A, 0.875%, 2/15/22
United States 40,270,000   41,479,988
  |  6
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Convertible Securities Fund (continued)
    Country Principal
Amount* 		  Value
  Convertible Bonds (continued)        
  Information Technology 38.9%        
 
Atlassian Inc., cvt., senior note, 0.625%, 5/01/23
United States  $50,000,000      $90,240,408
b
Coupa Software Inc., cvt., senior note, 144A, 0.125%, 6/15/25
United States  21,000,000      23,621,788
b
DocuSign Inc., cvt., senior note, 144A, 0.50%, 9/15/23
United States  65,000,000      68,811,275
 
Electronics for Imaging Inc., cvt., senior note, 0.75%, 9/01/19
United States  22,000,000      22,031,535
 
Envestnet Inc., cvt., senior note, 1.75%, 6/01/23
United States  51,500,000      63,269,583
 
Guidewire Software Inc., cvt., senior note, 1.25%, 3/15/25
United States  49,000,000      55,166,748
 
HubSpot Inc., cvt., senior note, 0.25%, 6/01/22
United States 43,875,000   85,709,813
 
Inphi Corp., cvt., senior note, 0.75%, 9/01/21
United States 9,600,000   11,938,608
 
Intel Corp., cvt., junior sub. bond, 3.25%, 8/01/39
United States 8,000,000   19,861,920
 
Microchip Technology Inc., cvt., 1.625%, 2/15/27
United States 69,250,000   88,418,400
 
NXP Semiconductors NV, cvt., senior note, 1.00%, 12/01/19
Netherlands 55,000,000   58,820,283
 
Okta Inc., cvt., senior note, 0.25%, 2/15/23
United States 28,900,000   79,194,084
b
Palo Alto Networks Inc., cvt., senior note, 144A, 0.75%, 7/01/23
United States 53,000,000   58,484,166
b
Pluralsight Inc., cvt., senior note, 144A, 0.375%, 3/01/24
United States 19,000,000   20,700,158
 
Q2 Holdings Inc., cvt., senior note, 0.75%, 2/15/23
United States 32,000,000   47,532,672
 
RealPage Inc., cvt., senior note, 1.50%, 11/15/22
United States 40,850,000   64,280,016
 
Red Hat Inc., cvt., senior note, 0.25%, 10/01/19
United States 29,250,000   75,647,813
 
ServiceNow Inc., cvt., senior note, zero cpn., 6/01/22
United States 40,000,000   83,354,833
 
Silicon Laboratories Inc., cvt., senior note, 1.375%, 3/01/22
United States 53,700,000   71,210,911
b
Splunk Inc., cvt., senior note, 144A, 1.125%, 9/15/25
United States 22,500,000   26,279,550
 
Square Inc., cvt., senior note, 0.50%, 5/15/23
United States 65,000,000   82,935,633
 
Twilio Inc., cvt., senior note, 0.25%, 6/01/23
United States 37,500,000   76,694,317
  Viavi Solutions Inc.,        
 
cvt., senior note, 1.75%, 6/01/23
United States  40,969,000      50,856,868
 
cvt., senior note, 1.00%, 3/01/24
United States  20,000,000      25,113,907
 
Wix.com Ltd., cvt., senior note, zero cpn., 7/01/23
Israel 56,500,000   71,240,285
 
Workday Inc., cvt., senior note, 0.25%, 10/01/22
United States 57,500,000   84,383,622
 
Zendesk Inc., cvt., senior note, 0.25%, 3/15/23
United States 56,500,000   83,015,417
          1,588,814,613
  Materials 1.1%        
 
Cemex SAB de CV, cvt., sub. note, 3.72%, 3/15/20
Mexico 44,250,000   44,307,973
 
Total Convertible Bonds (Cost $2,579,752,216)
      3,179,321,940
      Shares    
  Escrows and Litigation Trusts (Cost $22,362) 0.0%        
a,c
Motors Liquidation Co., Escrow Account
United States 376,200     —
 
Total Investments before Short Term Investments (Cost $3,208,485,262)
      3,864,597,492
  |  7
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Convertible Securities Fund (continued)
    Country Shares   Value
  Short Term Investments (Cost $205,836,690) 5.1%        
  Money Market Funds 5.1%        
d,e
Institutional Fiduciary Trust Money Market Portfolio, 2.00%
United States 205,836,690     $205,836,690
 
Total Investments (Cost $3,414,321,952) 99.8%
      4,070,434,182
 
Other Assets, less Liabilities 0.2%
      9,951,045
 
Net Assets 100.0%
      $4,080,385,227
 
*The principal amount is stated in U.S. dollars unless otherwise indicated.
aNon-income producing.
bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At July 31, 2019, the aggregate value of these securities was $719,937,312, representing 17.6% of net assets.
cFair valued using significant unobservable inputs. See Note 10 regarding fair value measurements.
dSee  Note 7 regarding investments in affiliated management investment companies.
eThe rate shown is the annualized seven-day effective yield at period end.
  |  8
Franklin Investors Securities Trust
Statement of Investments, July 31, 2019 (unaudited)
Franklin Equity Income Fund
    Country Shares   Value
  Common Stocks 86.6%        
  Communication Services 4.9%        
 
Comcast Corp., A
United States    835,000      $36,046,950
 
Rogers Communications Inc., B
Canada    350,000      18,161,500
 
TELUS Corp.
Canada    470,000      16,894,715
 
Verizon Communications Inc.
United States    875,000      48,361,250
          119,464,415
  Consumer Discretionary 3.4%        
a
Amazon.com Inc.
United States 2,300   4,293,594
 
Las Vegas Sands Corp.
United States 140,000   8,461,600
 
Lowe’s Cos. Inc.
United States 129,500   13,131,300
 
McDonald’s Corp.
United States 175,000   36,876,000
 
Target Corp.
United States 220,000   19,008,000
          81,770,494
  Consumer Staples 10.9%        
 
The Coca-Cola Co.
United States 1,075,000   56,577,250
 
Nestle SA
Switzerland 190,000   20,193,052
 
PepsiCo Inc.
United States 415,000   53,041,150
 
The Procter & Gamble Co.
United States 567,500   66,987,700
 
Unilever NV, N.Y. shs.
United Kingdom 415,000   23,962,100
 
Walmart Inc.
United States 380,000   41,944,400
          262,705,652
  Energy 8.3%        
 
Chevron Corp.
United States 485,000   59,708,350
 
Exxon Mobil Corp.
United States 455,934   33,903,252
 
Occidental Petroleum Corp.
United States 537,000   27,580,320
 
ONEOK Inc.
United States 250,000   17,520,000
 
Royal Dutch Shell PLC, A, ADR
United Kingdom 555,000   34,903,950
 
Suncor Energy Inc.
Canada 970,000   27,839,000
          201,454,872
  Financials 17.8%        
 
Arthur J. Gallagher & Co.
United States 210,000   18,990,300
 
Bank of America Corp.
United States 1,600,000   49,088,000
 
BB&T Corp.
United States 1,000,000   51,530,000
 
BlackRock Inc.
United States 45,500   21,279,440
 
JPMorgan Chase & Co.
United States 866,000   100,456,000
 
MetLife Inc.
United States 810,000   40,030,200
 
Morgan Stanley
United States 1,180,000   52,580,800
 
U.S. Bancorp
United States 740,000   42,291,000
 
Wells Fargo & Co.
United States 1,145,000   55,429,450
          431,675,190
  Health Care 11.3%        
 
Baxter International Inc.
United States 355,000   29,809,350
 
Eli Lilly & Co.
United States 80,000   8,716,000
 
HCA Holdings Inc.
United States 100,000   13,351,000
 
Johnson & Johnson
United States 380,000   49,483,600
 
Medtronic PLC
United States 455,000   46,382,700
Quarterly Statement of Investments  |  See Notes to Statements of Investments.  |  9
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Equity Income Fund (continued)
    Country Shares   Value
  Common Stocks (continued)        
  Health Care (continued)        
 
Merck & Co. Inc.
United States    525,000      $43,569,750
 
Pfizer Inc.
United States  1,184,300      45,998,212
 
UnitedHealth Group Inc.
United States    140,500      34,985,905
          272,296,517
  Industrials 10.6%        
 
3M Co.
United States    157,500      27,518,400
 
Emerson Electric Co.
United States 285,000   18,490,800
 
Illinois Tool Works Inc.
United States 82,500   12,723,975
 
Lockheed Martin Corp.
United States 95,000   34,406,150
 
Norfolk Southern Corp.
United States 150,000   28,668,000
 
Raytheon Co.
United States 215,000   39,192,350
 
Republic Services Inc.
United States 498,500   44,192,025
 
Stanley Black & Decker Inc.
United States 112,780   16,645,200
 
United Technologies Corp.
United States 260,000   34,736,000
          256,572,900
  Information Technology 9.6%        
 
Analog Devices Inc.
United States 115,000   13,507,900
 
Apple Inc.
United States 130,000   27,695,200
 
Cisco Systems Inc.
United States 629,233   34,859,509
 
Intel Corp.
United States 328,402   16,600,721
 
Microsoft Corp.
United States 660,000   89,938,200
 
Oracle Corp.
United States 290,500   16,355,150
 
Texas Instruments Inc.
United States 262,000   32,752,620
          231,709,300
  Materials 1.3%        
 
BASF SE
Germany 87,500   5,860,439
 
Dow Inc.
United States 160,000   7,750,400
 
DuPont de Nemours Inc.
United States 138,333   9,982,109
 
International Paper Co.
United States 175,000   7,684,250
          31,277,198
  Real Estate 2.7%        
 
Equity Residential
United States 300,000   23,667,000
 
Host Hotels & Resorts Inc.
United States 1,400,000   24,346,000
 
Prologis Inc.
United States 215,000   17,331,150
          65,344,150
  Utilities 5.8%        
 
Duke Energy Corp.
United States 500,000   43,360,000
 
NextEra Energy Inc.
United States 255,300   52,890,501
 
Xcel Energy Inc.
United States 723,500   43,127,835
          139,378,336
 
Total Common Stocks (Cost $1,435,308,673)
      2,093,649,024
  |  10
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Equity Income Fund (continued)
    Country Shares   Value
  Equity-Linked Securities 9.0%        
  Consumer Discretionary 3.1%        
b
Citigroup Global Markets Holdings Inc. into Amazon.com Inc., 6.50%, 144A
United States     17,500      $31,468,803
b
JPMorgan Chase Bank NA into TXJ Co., 5.50%, 144A
United States    326,000      17,996,269
b
Wells Fargo Bank National Assn. into Dollar General Corp., 6.50%, 144A
United States    205,000      24,769,370
          74,234,442
  Energy 0.6%        
b
Citigroup Global Markets Holdings Inc. into Anadarko Petroleum Corp., 8.00%, 144A
United States    250,000      14,536,110
  Financials 1.8%        
b
Goldman Sachs International into The Charles Schwab Corp., 7.00%, 144A
United States 436,000   19,022,373
b
Morgan Stanley BV into Bank of America Corp., 6.50%, 144A
United States 800,000   24,707,490
          43,729,863
  Health Care 0.8%        
b
Goldman Sachs International into HCA Holdings Inc., 6.00%, 144A
United States 140,200   19,095,134
  Information Technology 2.7%        
b
Barclays Bank PLC into Broadcom Inc., 10.00%, 144A
United States 67,000   19,542,959
b
Goldman Sachs International into Intel Corp., 8.00%, 144A
United States 230,000   11,658,485
b
Merrill Lynch International & Co. CV into Analog Devices Inc., 7.00%, 144A
United States 235,000   23,149,104
b
Merrill Lynch International & Co. CV into Cisco System Inc., 7.00%, 144A
United States 225,000   12,181,668
          66,532,216
 
Total Equity-Linked Securities (Cost $204,036,217)
      218,127,765
  Convertible Preferred Stocks 2.8%        
  Health Care 1.8%        
 
Becton Dickinson and Co., 6.125%, cvt. pfd., A
United States 700,000   43,155,000
  Industrials 0.5%        
 
Fortive Corp., 5.00%, cvt. pfd., A
United States 11,950   11,674,074
  Materials 0.5%        
 
International Flavors & Fragrances Inc., 6.00%, cvt. pfd.
United States 257,476   13,844,485
 
Total Convertible Preferred Stocks (Cost $62,928,574)
      68,673,559
 
Total Investments before Short Term Investments (Cost $1,702,273,464)
      2,380,450,348
  |  11
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Equity Income Fund (continued)
    Country Shares   Value
  Short Term Investments (Cost $40,067,326) 1.7%        
  Money Market Funds 1.7%        
c,d
Institutional Fiduciary Trust Money Market Portfolio, 2.00%
United States 40,067,326      $40,067,326
 
Total Investments (Cost $1,742,340,790) 100.1%
      2,420,517,674
 
Other Assets, less Liabilities (0.1)%
      (1,330,854)
 
Net Assets 100.0%
      $2,419,186,820
  
See Abbreviations on page 114.
aNon-income producing.
bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At July 31, 2019, the aggregate value of these securities was $218,127,765, representing 9.0% of net assets.
cSee  Note 7 regarding investments in affiliated management investment companies.
dThe rate shown is the annualized seven-day effective yield at period end.
  |  12
Franklin Investors Securities Trust
Statement of Investments, July 31, 2019 (unaudited)
Franklin Floating Rate Daily Access Fund
    Country Shares   Value
  Common Stocks 1.0%        
  Diversified Support Services 0.1%        
a,b
Remington Outdoor Co. Inc.
United States   1,808,932       $3,843,980
  Forest Products 0.5%        
a,b,c,d
Appvion Operations Inc.
United States   1,219,956      13,948,586
  Oil & Gas Exploration & Production 0.4%        
a
Samson Resources II LLC
United States     432,778      10,548,964
 
Total Common Stocks (Cost $87,820,268)
      28,341,530
  Management Investment Companies (Cost $67,471,246) 2.1%        
  Other Diversified Financial Services 2.1%        
e
Franklin Floating Rate Income Fund
United States 6,837,495   58,870,829
      Principal
Amount* 		   
  Corporate Bonds (Cost $18,430,328) 0.6%        
  Industrial Machinery 0.6%        
f
Onsite Rental Group Operations Pty. Ltd., secured note, PIK, 6.10%, 10/26/23
Australia $21,096,262   16,349,603
g Senior Floating Rate Interests 80.9%        
  Aerospace & Defense 3.0%        
 
Delos Finance S.A.R.L. (AerCap), New Loans, 4.08%, (3-month USD LIBOR + 1.75%), 10/06/23
Luxembourg 33,009,015   33,129,366
  Doncasters U.S. Finance LLC,        
 
Second Lien Term Loans, 10.58%, (3-month USD LIBOR + 8.25%), 10/09/20
United States   8,951,314       2,678,994
 
Term B Loans, 5.83%, (3-month USD LIBOR + 3.50%), 4/09/20
United States  26,917,631      20,423,753
 
Flying Fortress Holdings LLC (ILFC), New Loan, 4.08%, (3-month USD LIBOR + 1.75%), 10/30/22
United States 25,762,778   25,840,993
          82,073,106
  Air Freight & Logistics 0.4%        
 
XPO Logistics Inc., Refinanced Term Loan, 4.234%, (1-month USD LIBOR + 2.00%), 2/24/25
United States 10,200,000   10,227,622
  Airlines 1.9%        
 
Air Canada, Term Loan, 4.241%, (1-month USD LIBOR + 2.00%), 10/06/23
Canada 20,946,796   21,034,081
 
Allegiant Travel Co., Class B Term Loans, 7.065%, (3-month USD LIBOR + 4.50%), 2/05/24
United States 17,755,500   17,810,986
 
American Airlines Inc., 2018 Replacement Term Loans, 4.061%, (3-month USD LIBOR + 1.75%), 6/27/25
United States 13,600,000   13,357,757
          52,202,824
  Apparel Retail 1.6%        
 
Ascena Retail Group Inc., Tranche B Term Loan, 6.75%, (1-month USD LIBOR + 4.50%), 8/21/22
United States 72,317,596   44,656,115
  Application Software 0.7%        
 
TIBCO Software Inc., Term B-2 Loans, 6.39%, (1-month USD LIBOR + 4.00%), 6/30/26
United States 19,844,370   19,903,804
  Auto Parts & Equipment 2.2%        
  Adient US LLC,        
 
Initial Term Loans, 6.815%, (3-month USD LIBOR + 4.25%), 5/06/24
United States   3,546,698       3,419,248
 
Initial Term Loans, 6.889%, (6-month USD LIBOR + 4.25%), 5/06/24
United States  10,640,096      10,257,744
Quarterly Statement of Investments  |  See Notes to Statements of Investments.  |  13
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Floating Rate Daily Access Fund (continued)
    Country Principal
Amount* 		  Value
g Senior Floating Rate Interests (continued)        
  Auto Parts & Equipment (continued)        
  American Axle & Manufacturing, Inc.,        
 
Tranche B Term Loan, 4.52%, (1-month USD LIBOR + 2.25%), 4/06/24
United States   $2,554,029       $2,513,724
 
Tranche B Term Loan, 4.53%, (3-month USD LIBOR + 2.25%), 4/06/24
United States     634,996         624,975
 
Panther BF Aggregator 2 LP, Initial Dollar Term Loan, 5.734%, (1-month USD LIBOR + 3.50%), 4/30/26
United States  16,901,359      16,927,556
 
TI Group Automotive Systems LLC, Initial US Term Loan, 4.734%, (1-month USD LIBOR + 2.50%), 6/30/22
United States  27,566,480      27,532,022
          61,275,269
  Automobile Manufacturers 0.6%        
 
Thor Industries Inc., Initial USD Term Loans, 6.188%, (1-month USD LIBOR + 3.75%), 2/01/26
United States 15,141,488   14,999,537
  Automotive Retail 0.1%        
 
Wand NewCo. 3 Inc., First Lien Term Loan, 5.86%, (1-month USD LIBOR + 3.50%), 2/05/26
United States 3,500,000   3,526,250
  Broadcasting 4.2%        
h,i
Diamond Sports Group LLC, Term Loan, TBD, 9/30/26
United States 20,949,399   21,023,246
  Gray Television Inc.,        
 
Term B-2 Loan, 4.582%, (3-month USD LIBOR + 2.25%), 2/07/24
United States  26,687,491      26,704,170
 
Term C Loan, 4.832%, (3-month USD LIBOR + 2.50%), 1/02/26
United States   5,733,006       5,755,508
 
Mission Broadcasting Inc., Term B-3 Loan, 4.652%, (1-month USD LIBOR + 2.25%), 1/17/24
United States 2,066,239   2,059,782
  Nexstar Broadcasting Inc.,        
 
Term A-4 Loan, 3.902%, (1-month USD LIBOR + 1.50%), 10/26/23
United States  12,888,738      12,759,851
 
Term B-3 Loan, 4.491%, (1-month USD LIBOR + 2.25%), 7/17/24
United States  10,372,313      10,339,899
 
h,i Term B-4 Loan, TBD, 7/31/26
United States   1,665,034       1,665,554
 
Sinclair Television Group Inc., Tranche B Term Loans, 4.49%, (1-month USD LIBOR + 2.25%), 1/03/24
United States 35,801,532   35,823,908
 
WXXA-TV LLC and WLAJ-TV LLC, Term A-4 Loan, 3.902%, (1-month USD LIBOR + 1.50%), 10/26/23
United States 356,721   354,715
          116,486,633
  Building Products 0.7%        
  Resideo Funding Inc.,        
 
Tranche A Term Loan, 4.33%, (3-month USD LIBOR + 2.00%), 10/25/23
United States  16,965,000      16,975,179
 
Tranche B Term Loan, 4.33%, (3-month USD LIBOR + 2.00%), 10/25/25
United States   1,710,967       1,715,231
          18,690,410
  Cable & Satellite 2.0%        
 
Charter Communications Operating LLC, Term B Loan, 4.33%, (3-month USD LIBOR + 2.00%), 4/30/25
United States 5,924,812   5,941,994
 
CSC Holdings LLC, March 2017 Incremental Term Loans, 4.575%, (1-month USD LIBOR + 2.25%), 7/17/25
United States 41,622,628   41,327,441
 
Mediacom Illinois LLC, Tranche N Term Loan, 4.10%, (1-week USD LIBOR + 1.75%), 2/15/24
United States 7,408,863   7,436,557
          54,705,992
  |  14
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Floating Rate Daily Access Fund (continued)
    Country Principal
Amount* 		  Value
g Senior Floating Rate Interests (continued)        
  Casinos & Gaming 3.1%        
 
Aristocrat Technologies Inc., Term B-3 Loans, 4.028%, (3-month USD LIBOR + 1.75%), 10/19/24
United States  $16,043,318      $16,069,388
  Boyd Gaming Corp.,        
 
Refinancing Term B Loans, 4.624%, (1-week USD LIBOR + 2.25%), 9/15/23
United States  13,524,737      13,554,924
 
Term A Loans, 4.624%, (1-week USD LIBOR + 2.25%), 9/15/21
United States   4,286,578       4,275,861
 
Caesars Resort Collection LLC, Term B Loans, 4.984%, (1-month USD LIBOR + 2.75%), 12/22/24
United States  12,540,852      12,453,330
 
CEOC LLC, Term B Loans, 4.234%, (1-month USD LIBOR + 2.00%), 10/06/24
United States   8,794,370       8,786,411
 
Eldorado Resorts Inc., Initial Term Loan, 4.563% - 4.688%, (1-month USD LIBOR + 2.25%), 4/17/24
United States 15,873,438   15,866,819
 
Kingpin Intermediate Holdings LLC, Amendment No. 2 Term Loans, 5.73%, (1-month USD LIBOR + 3.50%), 7/03/24
United States 2,751,210   2,764,966
 
Station Casinos LLC, Term B Facility Loans, 4.74%, (1-month USD LIBOR + 2.50%), 6/08/23
United States 11,541,543   11,583,266
          85,354,965
  Coal & Consumable Fuels 3.1%        
 
Foresight Energy LLC, Term Loans, 8.272%, (3-month USD LIBOR + 5.75%), 3/28/22
United States 54,667,452   41,000,589
  Wolverine Fuels Holding LLC,        
 
First Lien Initial Term Loan, 8.272%, (3-month USD LIBOR + 5.75%), 8/14/20
United States  31,480,947      30,995,605
 
Second Lien Initial Term Loan, 13.272%, (3-month USD LIBOR + 10.75%), 2/16/21
United States  13,774,236      13,051,088
          85,047,282
  Commodity Chemicals 0.8%        
 
Ineos U.S. Finance LLC, 2024 Dollar Term Loan, 4.258%, (2-month USD LIBOR + 2.00%), 3/31/24
United States 21,472,701   21,157,309
  Communications Equipment 0.8%        
 
Ciena Corp., 2018 Term Loan, 4.272%, (1-month USD LIBOR + 2.00%), 9/28/25
United States 9,214,693   9,250,686
 
CommScope Inc., Initial Term Loans, 5.484%, (1-month USD LIBOR + 3.25%), 4/04/26
United States 11,419,428   11,453,264
          20,703,950
  Data Processing & Outsourced Services 1.9%        
 
Iron Mountain Information Management LLC, Term B Loan, 3.984%, (1-month USD LIBOR + 1.75%), 1/26/26
United States 9,176,059   9,049,888
  Neustar Inc.,        
 
TLB4, 5.734%, (1-month USD LIBOR + 3.50%), 8/08/24
United States   3,092,132       3,012,911
 
TLB5, 6.734%, (1-month USD LIBOR + 4.50%), 8/08/24
United States  16,505,051      16,305,588
 
WEX Inc., Term B-3 Loan, 4.484%, (1-month USD LIBOR + 2.25%), 5/17/26
United States 23,714,601   23,788,709
          52,157,096
  Diversified Chemicals 0.9%        
 
Chemours Co., Tranche B-2 US$ Term Loan, 3.99%, (1-month USD LIBOR + 1.75%), 4/03/25
United States 18,180,393   17,305,244
 
Univar USA Inc., Term B-3 Loans, 4.484%, (1-month USD LIBOR + 2.25%), 7/01/24
United States 6,648,371   6,660,836
          23,966,080
  |  15
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Floating Rate Daily Access Fund (continued)
    Country Principal
Amount* 		  Value
g Senior Floating Rate Interests (continued)        
  Diversified Support Services 0.7%        
h
Ventia Pty Ltd., Term B Loans, 5.842%, (3-month USD LIBOR + 3.50%), 5/21/26
Australia  $19,049,390      $19,097,013
  Electric Utilities 0.5%        
  EFS Cogen Holdings I LLC (Linden),        
 
Term B Advance, 5.49%, (1-month USD LIBOR + 3.25%), 6/28/23
United States   3,779,501       3,770,052
 
Term B Advance, 5.58%, (3-month USD LIBOR + 3.25%), 6/28/23
United States   9,602,362       9,578,356
          13,348,408
  Food Distributors 1.2%        
 
Aramark Corp., U.S. Term B-3 Loan, 4.08%, (3-month USD LIBOR + 1.75%), 3/11/25
United States 18,524,719   18,563,158
 
Nutraceutical International Corp., Term Loan B, 5.484%, (1-month USD LIBOR + 3.25%), 8/22/23
United States 5,031,291   4,949,532
 
U.S. Foods Inc., Initial Term Loans, 4.234%, (1-month USD LIBOR + 2.00%), 6/27/23
United States 8,642,851   8,644,200
          32,156,890
  Food Retail 1.1%        
 
BI-LO LLC (Southeastern Grocers), FILO Loan (ABL), 7.772%, (3-month USD LIBOR + 5.25%), 5/31/22
United States 27,625,000   27,348,750
h,i
Whatabrands LLC (Whataburger), Term Loan B, TBD, 8/02/26
United States 4,003,143   4,019,656
          31,368,406
  Forest Products 1.6%        
b Appvion Operations, Inc.,        
 
Term Loan, 8.32%, (3-month USD LIBOR + 6.00%), 6/15/26
United States   2,812,943       2,798,878
 
Term Loan, 8.22%, (6-month USD LIBOR + 6.00%), 6/15/26
United States  42,511,633      42,299,075
          45,097,953
  General Merchandise Stores 1.3%        
f 99 Cents Only Stores,        
 
First Lien Term Loan, PIK, 8.83% - 9.022%, (3-month USD LIBOR + 6.50%), 1/13/22
United States  17,886,791      16,131,650
 
First Lien Term Loan, PIK, 9.151%, (6-month USD LIBOR + 6.50%), 1/13/22
United States  21,724,021      19,592,351
          35,724,001
  Health Care Distributors 0.6%        
 
Mallinckrodt International Finance SA & Mallinckrodt CB LLC, 2017 Term B Loans, 5.08%, (3-month USD LIBOR + 2.75%), 9/24/24
Luxembourg 17,940,597   15,294,359
  Health Care Facilities 0.3%        
 
HCA Inc., Term Loan B10, 4.33%, (3-month USD LIBOR + 2.00%), 3/13/25
United States 8,057,802   8,098,808
  Health Care Services 1.2%        
 
Air Medical Group Holdings Inc., 2018 New Term Loans, 6.484%, (1-month USD LIBOR + 4.25%), 3/14/25
United States 18,602,403   17,982,329
 
Catalent Pharma Solutions Inc., Dollar Term B-2 Loan, 4.484%, (1-month USD LIBOR + 2.25%), 5/17/26
United States 8,064,367   8,107,979
  National Mentor Holdings Inc.,        
 
Initial Term C Loans, 6.49%, (1-month USD LIBOR + 4.25%), 3/08/26
United States     321,346         323,506
 
Initial Term Loans, 6.49%, (1-month USD LIBOR + 4.25%), 3/08/26
United States   5,160,746       5,195,421
          31,609,235
  |  16
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Floating Rate Daily Access Fund (continued)
    Country Principal
Amount* 		  Value
g Senior Floating Rate Interests (continued)        
  Health Care Technology 0.6%        
  IQVIA Inc.,        
 
Term B-1 Dollar Loans, 4.33%, (3-month USD LIBOR + 2.00%), 3/07/24
United States   $8,470,833       $8,501,540
 
Term B-3 Dollar Loans, 4.008%, (2-month USD LIBOR + 1.75%), 6/11/25
United States   8,712,000       8,719,257
          17,220,797
  Hotels, Resorts & Cruise Lines 0.3%        
 
Hilton Worldwide Finance LLC, Refinanced Series B-2 Term Loans, 4.016%, (1-month USD LIBOR + 1.75%), 6/17/26
United States   7,807,860       7,844,464
  Industrial Machinery 3.9%        
 
Altra Industrial Motion Corp., Term Loan, 4.234%, (1-month USD LIBOR + 2.00%), 10/01/25
United States 13,997,375   13,933,099
 
Harsco Corp., Term Loan B-2, 4.50%, (1-month USD LIBOR + 2.25%), 12/10/24
United States 8,514,574   8,539,335
 
Navistar Inc., Tranche B Term Loan, 5.83%, (1-month USD LIBOR + 3.50%), 11/06/24
United States 61,430,307   61,560,539
 
Onsite Rental Group Operations Pty. Ltd., Term Loan, 6.766%, (1-month USD LIBOR + 4.50%), 10/25/22
Australia 15,430,073   15,237,196
 
RBS Global Inc. (Rexnord), Term B Loan, 4.234%, (1-month USD LIBOR + 2.00%), 8/21/24
United States 7,884,375   7,926,257
          107,196,426
  Integrated Telecommunication Services 1.8%        
  Global Tel*Link Corp.,        
 
h First Lien Term Loan, 6.484%, (1-month USD LIBOR + 4.25%), 11/29/25
United States  11,599,363      11,054,193
 
Second Lien Term Loan, 10.484%, (1-month USD LIBOR + 8.25%), 11/29/26
United States   7,895,149       7,658,295
  Securus Technologies Holdings Inc.,        
 
Initial Term Loan, 6.83%, (3-month USD LIBOR + 4.50%), 11/01/24
United States   8,954,546       8,171,023
 
Second Lien Initial Loan, 10.58%, (3-month USD LIBOR + 8.25%), 11/01/25
United States   4,911,521       4,453,114
 
Zayo Group LLC, 2017 Incremental Refinancing B-1 Term Loan, 4.234%, (1-month USD LIBOR + 2.00%), 1/19/21
United States 17,093,325   17,112,914
          48,449,539
  Interactive Media & Services 0.8%        
 
Ancestry.com Operations Inc., Term Loans, 5.49%, (1-month USD LIBOR + 3.25%), 10/19/23
United States 7,503,358   7,508,985
 
Go Daddy Operating Co. LLC, Tranche B-1 Term Loans, 4.234%, (1-month USD LIBOR + 2.00%), 2/15/24
United States 13,395,255   13,451,784
          20,960,769
  Internet Services & Infrastructure 0.5%        
h
Carbonite Inc., Initial Term Loan, 6.006%, (3-month USD LIBOR + 3.75%), 3/26/26
United States 5,874,699   5,886,936
 
LegalZoom.com Inc., 2018 Term Loans, 6.734%, (1-month USD LIBOR + 4.50%), 11/21/24
United States 7,694,708   7,730,680
          13,617,616
  Investment Banking & Brokerage 0.4%        
 
Russell Investments U.S. Institutional Holdco Inc., Initial Term Loan, 5.484%, (1-month USD LIBOR + 3.25%), 6/01/23
United States 11,840,182   11,771,118
  |  17
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Floating Rate Daily Access Fund (continued)
    Country Principal
Amount* 		  Value
g Senior Floating Rate Interests (continued)        
  Leisure Facilities 1.5%        
 
24 Hour Fitness Worldwide Inc., Term Loan, 5.734%, (1-month USD LIBOR + 3.50%), 5/30/25
United States  $19,561,235      $19,597,912
 
Equinox Holdings Inc., Term B-1 Loans, 5.234%, (1-month USD LIBOR + 3.00%), 3/08/24
United States  12,366,339      12,406,270
h,i
NASCAR Holdings Inc., Term Loan B, TBD, 9/26/26
United States   8,042,028       8,085,592
          40,089,774
  Life Sciences Tools & Services 0.4%        
 
Syneos Health Inc., Initial Term B Loans, 4.234%, (1-month USD LIBOR + 2.00%), 8/01/24
United States  10,078,842      10,080,152
  Marine 0.7%        
 
International Seaways Operating Corp., Initial Term Loans, 8.24%, (3-month USD LIBOR + 6.00%), 6/22/22
United States 7,302,118   7,302,117
 
Navios Maritime Partners LP, Initial Term Loan, 7.44%, (3-month USD LIBOR + 5.00%), 9/14/20
United States 11,054,291   11,012,838
          18,314,955
  Metal & Glass Containers 1.3%        
  Berry Global Inc.,        
 
Term U Loans, 4.902%, (3-month USD LIBOR + 2.50%), 7/01/26
United States  23,022,857      23,030,040
 
Term Q Loan, 4.629%, (1-month USD LIBOR + 2.25%), 10/01/22
United States  13,400,204      13,410,107
          36,440,147
  Mortgage REITs 0.1%        
 
Blackstone Mortgage Trust Inc., Initial Term Loans, 4.741%, (1-month USD LIBOR + 2.50%), 4/23/26
United States 1,528,069   1,539,530
  Movies & Entertainment 0.9%        
 
Lions Gate Capital Holdings LLC, Term A Loan, 3.984%, (1-month USD LIBOR + 1.75%), 3/22/23
Canada 23,866,298   23,677,396
  Office Services & Supplies 0.4%        
 
West Corp., Term B Loans, 6.522%, (3-month USD LIBOR + 4.00%), 10/10/24
United States 12,867,342   12,036,330
  Oil & Gas Exploration & Production 6.5%        
c
Cantium LLC, Commitment, 8.24%, (1-month USD LIBOR + 6.00%), 6/13/20
United States 18,565,149   18,559,394
 
Fieldwood Energy LLC, Closing Date Loans, 7.506%, (3-month USD LIBOR + 5.25%), 4/11/22
United States 142,454,139   131,770,078
  Utex Industries Inc.,        
 
First Lien Initial Term Loan, 6.234%, (1-month USD LIBOR + 4.00%), 5/21/21
United States  30,852,177      28,795,355
 
Second Lien Initial Term Loan, 9.484%, (1-month USD LIBOR + 7.25%), 5/20/22
United States     253,504         231,006
          179,355,833
  Oil & Gas Storage & Transportation 0.9%        
 
Centurion Pipeline Co. LLC, Initial Term Loans, 5.484%, (1-month USD LIBOR + 3.25%), 9/28/25
United States 6,469,644   6,487,163
 
Strike LLC, Term Loan, 10.651%, (6-month USD LIBOR + 8.00%), 11/30/22
United States 17,154,546   17,133,103
          23,620,266
  |  18
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Floating Rate Daily Access Fund (continued)
    Country Principal
Amount* 		  Value
g Senior Floating Rate Interests (continued)        
  Other Diversified Financial Services 0.6%        
  Asurion LLC,        
 
AM No. 14 Replacement B-4 Term Loans, 5.234%, (1-month USD LIBOR + 3.00%), 8/04/22
United States   $7,230,767       $7,254,867
 
Replacement B-6 Term Loans, 5.234%, (1-month USD LIBOR + 3.00%), 11/03/23
United States   9,257,804       9,288,179
 
Second Lien Replacement B-2 Term Loans, 8.734%, (1-month USD LIBOR + 6.50%), 8/04/25
United States     169,002         172,171
          16,715,217
  Packaged Foods & Meats 3.8%        
  CSM Bakery Supplies LLC,        
 
Second Lien Term Loan, 10.04%, (3-month USD LIBOR + 7.75%), 7/03/21
United States  15,995,244      14,888,901
 
Term Loans, 6.29%, (3-month USD LIBOR + 4.00%), 7/03/20
United States  21,563,389      20,610,999
 
JBS USA Lux SA, New Term Loans, 4.734%, (1-month USD LIBOR + 2.50%), 5/01/26
United States 38,745,751   38,846,645
 
Post Holdings Inc., Series A Incremental Term Loans, 4.27%, (1-month USD LIBOR + 2.00%), 5/24/24
United States 28,527,609   28,560,730
          102,907,275
  Paper Packaging 0.3%        
 
Reynolds Group Holdings Inc., U.S. Term Loans, 4.984%, (1-month USD LIBOR + 2.75%), 2/05/23
United States 8,704,600   8,720,146
  Personal Products 2.2%        
c FGI Operating Co. LLC (Freedom Group),        
 
f Term Loan, PIK, 12.518%, (3-month USD LIBOR + 10.00%), 5/15/22
United States  47,010,869      45,326,523
 
Term Loan FILO, 10.018% - 10.022%, (3-month USD LIBOR + 7.50%), 5/15/21
United States  13,405,115      13,372,369
h,i
Sunshine Luxembourg VII SARL, Term Loan B, TBD, 7/17/26
Luxembourg 2,700,000   2,711,813
          61,410,705
  Pharmaceuticals 3.3%        
 
Endo Luxembourg Finance Co. I S.A.R.L. and Endo LLC, Initial Term Loans, 6.50%, (1-month USD LIBOR + 4.25%), 4/29/24
United States 26,090,693   23,722,962
 
Grifols Worldwide Operations USA Inc., Tranche B Term Loan, 4.599%, (1-week USD LIBOR + 2.25%), 1/31/25
United States 30,426,651   30,538,378
 
Horizon Pharma Inc., Sixth Amendment Refinanced Term Loans, 4.938%, (1-month USD LIBOR + 2.50%), 5/22/26
United States 18,951,094   18,986,628
 
Innoviva Inc., Initial Term Loan, 7.022%, (3-month USD LIBOR + 4.50%), 8/18/22
United States 172,970   170,375
 
Valeant Pharmaceuticals International, Initial Term Loans, 5.379%, (1-month USD LIBOR + 3.00%), 6/02/25
United States 17,006,033   17,053,854
          90,472,197
  Research & Consulting Services 0.1%        
 
Nielsen Finance LLC, Class B-4 Term Loans, 4.367%, (1-month USD LIBOR + 2.00%), 10/04/23
United States 3,283,206   3,281,666
  |  19
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Floating Rate Daily Access Fund (continued)
    Country Principal
Amount* 		  Value
g Senior Floating Rate Interests (continued)        
  Restaurants 1.0%        
 
1011778 B.C. ULC, Term B-3 Loan, 4.484%, (1-month USD LIBOR + 2.25%), 2/17/24
Canada   $3,283,206       $3,290,987
 
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC (Yum Brands), Term Loan B, 4.05%, (1-month USD LIBOR + 1.75%), 4/03/25
United States  19,447,694      19,471,906
 
NPC International Inc., Second Lien Initial Term Loan, 9.819%, (3-month USD LIBOR + 7.50%), 4/20/25
United States   8,228,426       4,895,914
          27,658,807
  Security & Alarm Services 0.4%        
 
Prime Security Services Borrower LLC, Term B-1 Loans, 4.984%, (1-month USD LIBOR + 2.75%), 5/02/22
United States  11,519,066      11,524,825
  Semiconductor Equipment 0.2%        
 
MKS Instruments Inc., Tranche B-5 Term Loans, 4.484%, (1-month USD LIBOR + 2.25%), 2/01/26
United States 5,382,038   5,399,695
  Semiconductors 1.0%        
 
ON Semiconductor Corp., 2018 New Replacement Term B-3 Loans, 3.984%, (1-month USD LIBOR + 1.75%), 3/31/23
United States 28,274,740   28,233,515
  Specialized Consumer Services 2.4%        
 
Avis Budget Car Rental LLC, Tranche B Term Loans, 4.24%, (1-month USD LIBOR + 2.00%), 2/13/25
United States 30,378,956   30,366,348
  NVA Holdings Inc.,        
 
Term B-3 Loan, 4.984%, (1-month USD LIBOR + 2.75%), 2/02/25
United States  20,630,467      20,634,759
 
Term B-4 Loan, 5.734%, (1-month USD LIBOR + 3.50%), 2/02/25
United States   2,025,783       2,027,050
  Sabre GLBL Inc.,        
 
2017 Other Term A Loans, 4.234%, (1-month USD LIBOR + 2.00%), 7/01/22
United States  12,291,936      12,245,841
 
2018 Other Term B Loans, 4.234%, (1-month USD LIBOR + 2.00%), 2/22/24
United States   1,854,163       1,861,116
          67,135,114
  Specialized Finance 0.5%        
 
Trans Union LLC, 2017 Replacement Term A-2 Loans, 3.734%, (1-month USD LIBOR + 1.50%), 8/09/22
United States 13,494,737   13,486,303
  Specialty Chemicals 2.3%        
 
Axalta Coating Systems U.S. Holdings Inc., Term B-3 Dollar Loan, 4.08%, (3-month USD LIBOR + 1.75%), 6/01/24
United States 32,093,410   31,980,602
  Oxbow Carbon LLC,        
 
Second Lien Term Loan, 9.734%, (1-month USD LIBOR + 7.50%), 1/04/24
United States   9,168,867       9,191,789
 
Tranche A Term Loan, 4.734%, (1-month USD LIBOR + 2.50%), 1/04/22
United States  11,900,000      11,840,500
 
Tranche B Term Loan, 5.984%, (1-month USD LIBOR + 3.75%), 1/04/23
United States  10,258,250      10,322,364
          63,335,255
  Specialty Stores 4.1%        
  General Nutrition Centers Inc.,        
 
FILO Term Loan (ABL), 9.24%, (1-month USD LIBOR + 7.00%), 12/31/22
United States  19,678,686      19,890,921
 
h Tranche B-2 Term Loans, 10.99%, (1-month USD LIBOR + 8.75%), 3/04/21
United States  42,922,055      41,162,250
 
Harbor Freight Tools USA Inc., Refinancing Loans, 4.734%, (1-month USD LIBOR + 2.50%), 8/19/23
United States 6,602,468   6,504,804
  Jo-Ann Stores, Inc.,        
 
Initial Loans, 7.261%, (1-month USD LIBOR + 5.00%), 10/23/23
United States     417,423         361,767
 
Initial Loans, 7.259%, (3-month USD LIBOR + 5.00%), 10/23/23
United States  11,014,038       9,545,503
  |  20
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Floating Rate Daily Access Fund (continued)
    Country Principal
Amount* 		  Value
g Senior Floating Rate Interests (continued)        
  Specialty Stores (continued)        
 
Michaels Stores Inc., 2018 New Replacement Term B Loan, 4.737% - 4.769%, (1-month USD LIBOR + 2.50%), 1/28/23
United States  $27,608,508      $26,780,253
h
PETCO Animal Supplies Stores Inc., Second Amendment Term Loans, 5.506%, (3-month USD LIBOR + 3.25%), 1/26/23
United States  11,669,303       9,105,193
h
PetSmart Inc., Amended Loan, 6.38%, (1-month USD LIBOR + 4.00%), 3/11/22
United States     140,117         137,801
          113,488,492
  Technology Hardware, Storage & Peripherals 0.2%        
 
Western Digital Corp., U.S. Term B-4 Loan, 4.012%, (1-month USD LIBOR + 1.75%), 4/29/23
United States   5,565,940       5,557,207
  Trucking 1.0%        
 
Hertz Corp., Tranche B-1 Term Loan, 4.99%, (1-month USD LIBOR + 2.75%), 6/30/23
United States 28,678,201   28,624,430
 
Total Senior Floating Rate Interests

(Cost $2,296,263,985)
      2,219,095,278
  Asset-Backed Securities 13.3%        
  Multi-Sector Holdings 0.5%        
j,k
Atrium IX, 9A, CR, 144A, FRN, 5.071%, (3-month USD LIBOR + 2.55%), 5/28/30
United States 3,511,200   3,513,904
j,k
Gilbert Park CLO Ltd., 2017-1A, C, 144A, FRN, 4.253%, (3-month USD LIBOR + 1.95%), 10/15/30
United States 350,000   341,803
j,k
Madison Park Funding XXIII Ltd., 2017-23A, C, 144A, FRN, 4.606%, (3-month USD LIBOR + 2.35%), 7/27/30
United States 3,000,000   2,994,630
j,l
Race Point X CLO Ltd., 2016-10A, C1R, 144A, FRN, 4.276%, 7/25/31
United States 7,000,000   6,750,380
          13,600,717
  Other Diversified Financial Services 12.8%        
j,k
Alinea CLO Ltd., 2018-1A, C, 144A, FRN, 4.178%, (3-month USD LIBOR + 1.90%), 7/20/31
United States 10,475,000   10,167,768
j,l
AMMC CLO 15 Ltd., 2014-15A, CRR, 144A, FRN, 4.603%, 1/15/32
United States 4,500,000   4,421,430
j,k
AMMC CLO XII Ltd., 2013-12A, CR, 144A, FRN, 4.445%, (3-month USD LIBOR + 1.90%), 11/10/30
United States 1,493,000   1,436,893
j,k
Annisa CLO Ltd., 2016-2A, CR, 144A, FRN, 4.278%, (3-month USD LIBOR + 2.00%), 7/20/31
United States 1,800,000   1,743,822
j,l
ARES XLIX CLO Ltd., 2018-49A, C, 144A, FRN, 4.228%, 7/22/30
United States 10,000,000   9,694,200
j,k
ARES XLVIII CLO Ltd., 2018-48A, C, 144A, FRN, 4.078%, (3-month USD LIBOR + 1.80%), 7/20/30
United States 6,270,000   6,039,515
j,k
ARES XXXVII CLO Ltd., 2015-4A, BR, 144A, FRN, 4.103%, (3-month USD LIBOR + 1.80%), 10/15/30
United States 4,908,000   4,745,202
j,l Atrium XIV LLC,        
 
14A, B, 144A, FRN, 4.022%, 8/23/30
United States   6,300,000       6,292,251
 
14A, C, 144A, FRN, 4.272%, 8/23/30
United States   6,000,000       5,843,760
j,l
Atrium XV, 15A, C, 144A, FRN, 4.459%, 1/23/31
United States 14,000,000   13,770,960
j,k
Betony CLO 2 Ltd., 2018-1A, B, 144A, FRN, 4.116%, (3-month USD LIBOR + 1.85%), 4/30/31
United States 5,700,000   5,531,394
j,l BlueMountain CLO XXII Ltd.,        
 
2018-1A, B, 144A, FRN, 3.966%, 7/30/30
United States  10,330,510      10,311,812
 
2018-1A, C, 144A, FRN, 4.316%, 7/30/30
United States   3,750,000       3,656,362
  |  21
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Floating Rate Daily Access Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities (continued)        
  Other Diversified Financial Services (continued)        
j,k
Bristol Park CLO Ltd., 2016-1A, A, 144A, FRN, 3.723%, (3-month USD LIBOR + 1.42%), 4/15/29
United States  $40,000,000      $40,020,000
j,k
Carlyle U.S. CLO Ltd., 2017-4A, B, 144A, FRN, 4.153%, (3-month USD LIBOR + 1.85%), 1/15/30
United States   1,493,000       1,446,836
j,l
Cole Park CLO Ltd., 2015-1A, CR, 144A, FRN, 4.278%, 10/20/28
United States   2,500,000       2,493,550
j,l
Dryden 40 Senior Loan Fund, 2015-40A, CR, 144A, FRN, 4.618%, 8/15/31
United States   2,000,000       1,965,140
j,k
Dryden 42 Senior Loan Fund, 2016-42A, CR, 144A, FRN, 4.353%, (3-month USD LIBOR + 2.05%), 7/15/30
United States   6,200,000       6,057,462
j,k
Dryden 58 CLO Ltd., 2018-58A, C, 144A, FRN, 4.103%, (3-month USD LIBOR + 1.80%), 7/17/31
United States  11,000,000      10,556,260
j,l Dryden 70 CLO Ltd.,        
 
2018-70A, B, 144A, FRN, 4.022%, 1/16/32
United States   5,880,435       5,820,455
 
2018-70A, C, 144A, FRN, 4.472%, 1/16/32
United States   7,500,000       7,374,675
j,l
Eaton Vance CLO Ltd., 2014-1RA, C, 144A, FRN, 4.403%, 7/15/30
United States 5,136,585   5,012,177
j
Emerson Park CLO Ltd., 2013-1A, C2R, 144A, 4.055%, 7/15/25
United States 3,600,000   3,601,584
j,k
Galaxy XVIII CLO Ltd., 2018-28A, C, 144A, FRN, 4.253%, (3-month USD LIBOR + 1.95%), 7/15/31
United States 5,300,000   5,127,909
j,l Galaxy XXV CLO Ltd.,        
 
2018-25A, B, 144A, FRN, 3.926%, 10/25/31
United States   4,000,000       3,970,200
 
2018-25A, C, 144A, FRN, 4.276%, 10/25/31
United States     500,000         485,645
j,l
Galaxy XXVI CLO Ltd., 2018-26A, C, 144A, FRN, 4.673%, 11/22/31
United States 1,200,000   1,176,240
j,l
Harbor Parl CLO Ltd., 1A, C, 144A, FRN, 4.378%, 1/20/31
United States 6,700,000   6,576,117
j,l
LCM Loan Income Fund I Income Note Issuer Ltd., 2027A, C, 144A, FRN, 4.272%, 7/16/31
United States 10,050,000   9,716,139
j,k
LCM XV LP, 2015-A, CR, 144A, FRN, 4.678%, (3-month USD LIBOR + 2.40%), 7/20/30
United States 6,500,000   6,507,605
j,l LCM XVI LP,        
 
2016A, BR2, 144A, FRN, 4.053%, 10/15/31
United States   6,399,083       6,377,006
 
2016A, CR2, 144A, FRN, 4.453%, 10/15/31
United States   5,100,000       4,986,678
j,k
LCM XXIV Ltd., 24A, A, 144A, FRN, 3.588%, (3-month USD LIBOR + 1.31%), 3/20/30
United States 17,000,000   17,015,300
j,k Madison Park Funding Ltd.,        
 
2016-21A, A1, 144A, FRN, 3.806%,(3-month USD LIBOR + 1.53%), 7/25/29
United States   5,400,000       5,427,702
 
2018-28A, C, 144A, FRN, 4.153%,(3-month USD LIBOR + 1.85%), 7/15/30
United States  13,350,000      12,916,792
j,k
Madison Park Funding XI Ltd., 2013-11, CR, 144A, FRN, 4.459%, (3-month USD LIBOR + 2.20%), 7/23/29
United States 2,040,000   2,022,578
j,k
Madison Park Funding XXIV Ltd., 2016-24A, C1, 144A, FRN, 4.878%, (3-month USD LIBOR + 2.60%), 1/20/28
United States 1,875,000   1,881,506
j,k
Neuberger Berman CLO Ltd., 2017-26A, C, 144A, FRN, 4.05%, (3-month USD LIBOR + 1.75%), 10/18/30
United States 746,000   713,154
j,k
Newark BSL CLO 2 Ltd., 2017-1A, B, 144A, FRN, 4.626%, (3-month USD LIBOR + 2.35%), 7/25/30
United States 9,671,118   9,674,503
j,k
Octagon Investment Partners 26 Ltd., 2016-1A, CR, 144A, FRN, 4.103%, (3-month USD LIBOR + 1.80%), 7/15/30
United States 10,220,000   9,847,890
j,l
Octagon Investment Partners 27 Ltd., 2016-1A, CR, 144A, FRN, 4.403%, 7/15/30
United States 7,435,000   7,284,590
j,k
Octagon Investment Partners 37 Ltd., 2018-2A, B, 144A, FRN, 4.026%, (3-month USD LIBOR + 1.75%), 7/25/30
United States 10,875,000   10,442,066
j,l
Octagon Investment Partners 38, 2018-1A, A3A, 144A, FRN, 3.948%, 7/20/30
United States 3,484,000   3,464,072
  |  22
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Floating Rate Daily Access Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities (continued)        
  Other Diversified Financial Services (continued)        
j,k
Octagon Investment Partners XVI Ltd., 2013-1A, CR, 144A, FRN, 4.153%, (3-month USD LIBOR + 1.85%), 7/17/30
United States  $12,500,000      $12,113,000
j,k
Octagon Investment Partners XXII Ltd., 2014-1A, CRR, 144A, FRN, 4.178%, (3-month USD LIBOR + 1.90%), 1/22/30
United States   3,000,000       2,905,620
j Voya CLO Ltd.,        
 
l 2016-3A, BR, 144A, FRN, 4.50%, 10/18/31
United States  10,000,000       9,813,300
 
k 2017-3A, B, 144A, FRN, 4.628%,(3-month USD LIBOR + 2.35%), 7/20/30
United States   8,362,537       8,311,024
 
l 2018-4A, B, 144A, FRN, 4.153%, 1/15/32
United States  14,285,714      14,311,714
 
l 2018-4A, C1, 144A, FRN, 4.853%, 1/15/32
United States  10,000,000      10,003,900
          351,075,758
 
Total Asset-Backed Securities (Cost $370,898,857)
      364,676,475
      Units    
  Escrows and Litigation Trusts (Cost $—) 0.0%        
a,b,c,d
Remington Outdoor Co. Inc., Litigation Units
United States 170,300     —
 
Total Investments before Short Term Investments

(Cost $2,840,884,684)
      2,687,333,715
      Shares    
  Short Term Investments (Cost $46,248,367) 1.7%        
  Money Market Funds 1.7%        
e,m
Institutional Fiduciary Trust Money Market Portfolio, 2.00%
United States 46,248,367   46,248,367
 
Total Investments (Cost $2,887,133,051) 99.6%
      2,733,582,082
 
Other Assets, less Liabilities 0.4%
      11,171,745
 
Net Assets 100.0%
      $2,744,753,827
  |  23
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Floating Rate Daily Access Fund (continued)
*The principal amount is stated in U.S. dollars unless otherwise indicated.
aNon-income producing.
bSee  Note 6 regarding holdings of 5% voting securities.
cFair valued using significant unobservable inputs. See Note 10 regarding fair value measurements.
dSee  Note 5 regarding restricted securities.
eSee  Note 7 regarding investments in affiliated management investment companies.
fIncome may be received in additional securities and/or cash.
gThe coupon rate shown represents the rate at period end.
hA portion or all of the security purchased on a delayed delivery basis.  
iA portion or all of the security represents an unsettled loan commitment. The coupon rate is to-be determined (TBD) at the time of settlement and will be based upon a reference index/floor plus a spread.
jSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At July 31, 2019, the aggregate value of these securities was $364,676,475, representing 13.3% of net assets.
kThe coupon rate shown represents the rate inclusive of any caps or floors, if applicable, in effect at period end.
lAdjustable rate security with an interest rate that is not based on a published reference index and spread. The rate is based on the structure of the agreement and current market conditions. The coupon rate shown represents the rate at period end.
mThe rate shown is the annualized seven-day effective yield at period end.
At July 31, 2019, the Fund had the following credit default swap contracts outstanding. See  Note 3.
Credit Default Swap Contracts
Description Periodic
Payment Rate
Received (Paid) 		Payment
Frequency 		  Maturity
Date 		Notional
Amount 		  Value Unamortized
Upfront
Payments
(Receipts) 		Unrealized
Appreciation
(Depreciation) 		Rating
Centrally Cleared Swap Contracts
Contracts to Buy Protectiona
Traded Index
CDX.NA.HY.26
(5.00)% Quarterly   6/20/21 $48,128,000   $(2,695,458) $(1,735,121) $(960,337)  
 
aPerformance triggers for settlement of contract include failure to pay or bankruptcy of the underlying securities for traded index swaps.
See Abbreviations on page 114.
  |  24
Franklin Investors Securities Trust
Statement of Investments, July 31, 2019 (unaudited)
Franklin Low Duration Total Return Fund
    Country Shares/Warrants   Value
  Common Stocks and Other Equity Interests 0.0%†        
  Commercial & Professional Services 0.0%†        
a
Remington Outdoor Co. Inc.
United States        170,787         $362,923
  Energy 0.0%†        
a
Halcon Resources Corp.
United States         98,168          11,093
a
Halcon Resources Corp., wts., 9/09/20
United States          8,753             175
a
Riviera Resources Inc.
United States          2,835          32,347
a
Roan Resources Inc.
United States          2,964           3,557
          47,172
  Materials 0.0%†        
a,b,c
Appvion Operations Inc.
United States 24,739   282,862
a
Verso Corp., A
United States 1,387   22,442
a
Verso Corp., wts., 7/25/23
United States 146   277
          305,581
  Retailing 0.0%†        
a,b,c
K2016470219 South Africa Ltd., A
South Africa 12,326,925   8,578
a,b,c
K2016470219 South Africa Ltd., B
South Africa 1,226,701   854
          9,432
 
Total Common Stocks and Other Equity Interests (Cost $6,174,514)
      725,108
  Management Investment Companies 2.4%        
  Diversified Financials 2.4%        
d
Franklin Floating Rate Income Fund
United States 2,389,308   20,571,938
 
Invesco Senior Loan ETF
United States 2,514,000   57,369,480
 
Total Management Investment Companies (Cost $80,988,911)
      77,941,418
      Principal
Amount* 		   
  Corporate Bonds 25.5%        
  Banks 7.4%        
e
Akbank T.A.S., senior note, 144A, 5.125%, 3/31/25
Turkey 2,200,000   2,047,507
e
ANZ New Zealand International Ltd. of London, senior note, 144A, 2.85%, 8/06/20
New Zealand 7,500,000   7,539,124
f
Banca Monte dei Paschi di Siena SpA, secured note, Reg S, 2.875%, 4/16/59
Italy 6,300,000 EUR 7,291,335
  Bank of America Corp.,        
 
senior note, 2.151%, 11/09/20
United States      6,600,000       6,589,726
 
senior note, 2.369% to 7/20/20, FRN thereafter, 7/21/21
United States      6,800,000       6,792,228
 
senior note, 3.55% to 3/05/23, FRN thereafter, 3/05/24
United States      8,950,000       9,245,432
Quarterly Statement of Investments  |  See Notes to Statements of Investments.  |  25
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Corporate Bonds (continued)        
  Banks (continued)        
 
Barclays PLC, senior note, 4.61% to 2/14/22, FRN thereafter, 2/15/23
United Kingdom      6,300,000       $6,500,119
 
BPCE SA, senior note, 2.65%, 2/03/21
France      6,700,000       6,732,026
 
Citibank NA, senior note, 3.165% to 2/19/22, FRN thereafter, 2/19/22
United States      5,950,000       6,016,387
  Citigroup Inc.,        
 
senior note, 2.40%, 2/18/20
United States     11,300,000      11,321,259
 
senior note, 2.65%, 10/26/20
United States      5,000,000       5,015,364
 
senior note, 2.35%, 8/02/21
United States      5,400,000       5,399,392
 
senior note, 2.90%, 12/08/21
United States      6,000,000       6,071,212
 
senior note, 2.75%, 4/25/22
United States      5,800,000       5,847,958
 
Credit Suisse of New York, senior note, 4.375%, 8/05/20
Switzerland 12,000,000   12,243,840
  HSBC Holdings PLC,        
 
senior note, 3.40%, 3/08/21
United Kingdom      3,300,000       3,345,194
 
senior note, 2.95%, 5/25/21
United Kingdom     14,500,000      14,623,902
  Industrial & Commercial Bank of China Ltd.,        
 
senior note, 3.231%, 11/13/19
China      5,400,000       5,409,072
 
senior note, 2.957%, 11/08/22
China      9,400,000       9,452,452
 
JPMorgan Chase & Co., senior note, 2.20%, 10/22/19
United States 21,400,000   21,393,980
 
PHH Corp., senior note, 7.375%, 9/01/19
United States 1,800,000   1,800,720
 
Regions Financial Corp., senior note, 3.20%, 2/08/21
United States 9,300,000   9,398,132
 
Royal Bank of Canada, secured note, 2.10%, 10/14/21
Canada 6,300,000   6,291,208
e
Standard Chartered PLC, senior note, 144A, 3.885% to 3/15/23, FRN thereafter, 3/15/24
United Kingdom 10,000,000   10,213,050
 
SunTrust Bank of Atlanta, senior note, 3.525% to 10/25/20, FRN thereafter, 3.525%, 10/26/21
United States 5,000,000   5,065,862
e
The Toronto-Dominion Bank, secured note, 144A, 2.25%, 3/15/22
Canada 12,700,000   12,723,228
f
Turkiye Vakiflar Bankasi TAO, secured note, Reg S, 2.375%, 11/04/22
Turkey 1,800,000 EUR 1,987,318
g
Wells Fargo & Co., senior note, FRN, 3.158%, (3-month USD LIBOR + 0.88%), 7/22/20
United States 13,700,000   13,795,084
e Westpac Banking Corp.,        
 
secured note, 144A, 2.10%, 2/25/22
Australia      9,700,000       9,693,016
 
senior secured note, 144A, 2.25%, 11/09/21
Australia      6,300,000       6,305,639
          236,150,766
  Capital Goods 0.6%        
 
Caterpillar Financial Services Corp., senior note, 1.70%, 8/09/21
United States 4,600,000   4,561,311
 
CNH Industrial Capital LLC, senior note, 3.875%, 10/15/21
United States 5,100,000   5,230,866
h
Onsite Rental Group Operations Pty. Ltd., secured note, PIK, 6.10%, 10/26/23
Australia 347,593   269,385
 
United Technologies Corp., senior note, 4.50%, 4/15/20
United States 7,500,000   7,608,342
          17,669,904
  Consumer Services 0.4%        
e
1011778 BC ULC/New Red Finance Inc., senior secured note, first lien, 144A, 4.25%, 5/15/24
Canada 4,000,000   4,102,000
 
Marriott International Inc., senior note, 2.875%, 3/01/21
United States 10,000,000   10,053,238
          14,155,238
  |  26
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Corporate Bonds (continued)        
  Diversified Financials 4.6%        
 
American Express Co., senior note, 3.70%, 8/03/23
United States      6,800,000       $7,112,298
g
Bank of New York Mellon Corp., senior note, FRN, 3.395%, (3-month USD LIBOR + 0.87%), 8/17/20
United States      6,400,000       6,456,557
  Capital One Financial Corp.,        
 
senior note, 2.50%, 5/12/20
United States      3,900,000       3,900,498
 
senior note, 3.45%, 4/30/21
United States      6,800,000       6,903,299
 
senior note, 3.05%, 3/09/22
United States     13,600,000      13,777,381
g
CIA Securitizadora de Creditos Financeiros Vert-Fintech, senior secured note, FRN, 5.96%, (BZDIOVRA + 5.75%), 2/14/24
Brazil 920i BRL 242,109
g
Deutsche Bank AG, senior note, FRN, 3.83%, (3-month USD LIBOR + 1.31%), 8/20/20
Germany 7,500,000   7,494,075
e
Dexia Credit Local SA, senior note, 144A, 2.375%, 9/20/22
France 4,550,000   4,587,788
 
GE Capital International Funding Co., senior note, 2.342%, 11/15/20
United States 2,000,000   1,991,551
  The Goldman Sachs Group Inc.,        
 
senior note, 2.625%, 4/25/21
United States     12,000,000      12,027,958
 
senior note, 2.35%, 11/15/21
United States      4,000,000       3,987,727
 
g senior note, FRN, 3.61%, (3-month USD LIBOR + 1.20%), 9/15/20
United States     23,000,000      23,215,705
  Morgan Stanley,        
 
senior note, 2.65%, 1/27/20
United States      4,000,000       4,004,180
 
senior note, 2.80%, 6/16/20
United States      6,600,000       6,622,161
 
g senior note, FRN, 3.396%, (3-month USD LIBOR + 1.14%), 1/27/20
United States     22,400,000      22,508,090
  Navient Corp.,        
 
senior bond, 8.00%, 3/25/20
United States      1,150,000       1,188,812
 
senior note, 5.00%, 10/26/20
United States      2,000,000       2,046,250
e Pricoa Global Funding I,        
 
secured note, 144A, 2.55%, 11/24/20
United States      5,600,000       5,618,012
 
secured note, 144A, 3.45%, 9/01/23
United States      7,200,000       7,483,748
e
Protective Life Global Funding, secured note, 144A, 2.262%, 4/08/20
United States 7,000,000   6,993,368
e,g
Seven and Seven Ltd., senior note, 144A, FRN, 3.683%, (6-month USD LIBOR + 1.00%), 9/11/19
South Korea 200,000   199,761
          148,361,328
  Energy 1.7%        
e
Aker BP ASA, senior note, 144A, 4.75%, 6/15/24
Norway 1,800,000   1,854,000
 
Anadarko Petroleum Corp., senior note, 4.85%, 3/15/21
United States 4,857,000   5,011,068
e
California Resources Corp., secured note, second lien, 144A, 8.00%, 12/15/22
United States 1,656,000   1,159,200
 
Enterprise Products Operating LLC, senior note, 2.55%, 10/15/19
United States 7,500,000   7,499,706
e
Harvest Operations Corp., senior note, 144A, 4.20%, 6/01/23
South Korea 1,900,000   2,010,148
  Kinder Morgan Inc.,        
 
senior note, 3.05%, 12/01/19
United States      4,500,000       4,504,908
 
senior note, 3.15%, 1/15/23
United States      9,300,000       9,469,824
  |  27
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Corporate Bonds (continued)        
  Energy (continued)        
 
Sabine Pass Liquefaction LLC, senior secured note, first lien, 5.625%, 2/01/21
United States     10,400,000      $10,773,539
 
Sanchez Energy Corp., senior note, 7.75%, 6/15/21
United States      1,900,000         123,500
 
Sunoco LP/Sunoco Finance Corp., senior note, 4.875%, 1/15/23
United States      4,500,000       4,588,650
 
Total Capital International SA, senior note, 2.75%, 6/19/21
France      5,800,000       5,868,150
 
The Williams Cos. Inc., senior note, 4.125%, 11/15/20
United States      1,700,000       1,727,647
          54,590,340
  Food & Staples Retailing 0.2%        
 
The Kroger Co., senior note, 2.60%, 2/01/21
United States 7,500,000   7,517,145
  Food, Beverage & Tobacco 0.8%        
 
BAT Capital Corp., senior note, 2.764%, 8/15/22
United Kingdom 3,000,000   3,002,054
 
Bunge Ltd. Finance Corp., senior note, 3.50%, 11/24/20
United States 3,100,000   3,135,846
 
Coca-Cola Femsa SAB de CV, senior note, 4.625%, 2/15/20
Mexico 1,400,000   1,415,610
e
Imperial Brands Finance PLC, senior note, 144A, 2.95%, 7/21/20
United Kingdom 6,000,000   6,016,683
  Kraft Heinz Foods Co.,        
 
senior note, 3.50%, 7/15/22
United States      5,700,000       5,829,981
 
senior note, 4.00%, 6/15/23
United States      5,000,000       5,234,579
          24,634,753
  Health Care Equipment & Services 1.7%        
 
Anthem Inc., senior note, 2.50%, 11/21/20
United States 7,800,000   7,814,168
 
Centene Corp., senior note, 4.75%, 5/15/22
United States 4,000,000   4,062,240
e
CHS/Community Health Systems Inc., senior note, 144A, 8.125%, 6/30/24
United States 1,500,000   1,151,250
e Cigna Corp.,        
 
senior note, 144A, 3.40%, 9/17/21
United States      5,800,000       5,901,174
 
senior secured note, 144A, 3.75%, 7/15/23
United States      3,900,000       4,054,791
  CVS Health Corp.,        
 
senior note, 2.80%, 7/20/20
United States      2,800,000       2,810,670
 
senior note, 2.125%, 6/01/21
United States      4,100,000       4,074,639
 
senior note, 3.70%, 3/09/23
United States      7,000,000       7,233,687
 
DaVita Inc., senior note, 5.75%, 8/15/22
United States 1,900,000   1,924,700
 
Express Scripts Holding Co., senior note, 4.75%, 11/15/21
United States 6,700,000   7,031,175
 
Zimmer Holdings Inc., senior note, 2.70%, 4/01/20
United States 7,500,000   7,508,037
          53,566,531
  Household & Personal Products 0.1%        
 
The Procter & Gamble Co., senior note, 1.70%, 11/03/21
United States 3,200,000   3,179,669
  Insurance 1.0%        
e
Jackson National Life Global Funding, secured note, 144A, 3.30%, 2/01/22
United States 12,000,000   12,234,470
 
Marsh & McLennan Cos. Inc., senior note, 3.50%, 12/29/20
United States 3,400,000   3,451,825
e Metropolitan Life Global Funding I,        
 
secured note, 144A, 3.375%, 1/11/22
United States      8,400,000       8,607,715
 
senior secured bond, 144A, 3.875%, 4/11/22
United States      5,900,000       6,131,421
          30,425,431
  |  28
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Corporate Bonds (continued)        
  Materials 0.6%        
e
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., senior note, 144A, 4.25%, 9/15/22
Luxembourg      4,000,000       $4,070,000
e
FMG Resources (August 2006) Pty. Ltd., senior note, 144A, 4.75%, 5/15/22
Australia      4,900,000       5,016,375
e
Glencore Finance Canada Ltd., senior bond, 144A, 4.95%, 11/15/21
Switzerland      3,500,000       3,663,987
e
Glencore Funding LLC, senior note, 144A, 3.00%, 10/27/22
Switzerland      2,200,000       2,205,961
e
Owens-Brockway Glass Container Inc., senior note, 144A, 5.875%, 8/15/23
United States      4,000,000       4,320,000
          19,276,323
  Media & Entertainment 1.2%        
e
Altice Financing SA, secured bond, 144A, 7.50%, 5/15/26
Luxembourg 2,000,000   2,095,000
 
Baidu Inc., senior note, 4.375%, 5/14/24
China 6,000,000   6,367,170
 
CCO Holdings LLC/CCO Holdings Capital Corp., senior bond, 5.125%, 2/15/23
United States 4,000,000   4,065,000
 
Comcast Corp., senior note, 3.45%, 10/01/21
United States 12,000,000   12,307,364
 
DISH DBS Corp., senior bond, 5.875%, 7/15/22
United States 3,000,000   3,043,560
e
Sirius XM Radio Inc., senior note, 144A, 4.625%, 7/15/24
United States 2,100,000   2,166,780
e
Tencent Holdings Ltd., senior note, 144A, 2.985%, 1/19/23
China 8,000,000   8,086,600
          38,131,474
  Pharmaceuticals, Biotechnology & Life Sciences 1.1%        
 
Allergan Funding SCS, senior note, 3.45%, 3/15/22
United States 10,500,000   10,705,782
e
Bayer U.S. Finance II LLC, senior note, 144A, 3.875%, 12/15/23
Germany 5,400,000   5,579,727
 
Biogen Inc., senior note, 2.90%, 9/15/20
United States 11,500,000   11,554,399
 
Celgene Corp., senior note, 2.25%, 8/15/21
United States 7,900,000   7,857,089
          35,696,997
  Real Estate 0.1%        
 
Equinix Inc., senior bond, 5.375%, 4/01/23
United States 4,500,000   4,592,835
  Retailing 1.1%        
  Alibaba Group Holding Ltd.,        
 
senior note, 2.50%, 11/28/19
China     11,900,000      11,899,762
 
senior note, 3.125%, 11/28/21
China      5,400,000       5,469,795
 
Amazon.com Inc., senior note, 2.40%, 2/22/23
United States 4,150,000   4,181,732
 
Dollar Tree Inc., senior note, 3.70%, 5/15/23
United States 8,800,000   9,089,794
b,c,h
K2016470219 South Africa Ltd., senior secured note, 144A, PIK, 3.00%, 12/31/22
South Africa 976,985   1,218
b,c,h
K2016470260 South Africa Ltd., senior secured note, 144A, PIK, 25.00%, 12/31/22
South Africa 232,121   2,274
e
PetSmart Inc., senior note, 144A, 7.125%, 3/15/23
United States 3,100,000   2,906,250
          33,550,825
  Software & Services 0.5%        
 
Fiserv Inc., senior note, 2.70%, 6/01/20
United States 11,300,000   11,321,162
 
Symantec Corp., senior note, 4.20%, 9/15/20
United States 4,000,000   4,064,506
          15,385,668
  |  29
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Corporate Bonds (continued)        
  Technology Hardware & Equipment 0.0%†        
 
Juniper Networks Inc., senior note, 3.30%, 6/15/20
United States        500,000         $502,385
 
Tech Data Corp., senior note, 3.70%, 2/15/22
United States        800,000         811,288
          1,313,673
  Telecommunication Services 0.4%        
e
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC, first lien, 144A, 3.36%, 3/20/23
United States      1,406,250       1,416,094
 
Telefonica Emisiones SA, senior bond, 5.134%, 4/27/20
Spain     10,400,000      10,601,084
 
T-Mobile USA Inc., senior note, 4.00%, 4/15/22
United States 1,800,000   1,836,000
          13,853,178
  Transportation 0.9%        
e
American Airlines Group Inc., senior note, 144A, 5.50%, 10/01/19
United States 1,780,000   1,787,120
e
DAE Funding LLC, senior note, 144A, 4.00%, 8/01/20
United Arab Emirates 4,100,000   4,135,875
  FedEx Corp.,        
 
senior note, 0.50%, 4/09/20
United States      7,100,000 EUR     7,888,321
 
senior note, 3.40%, 1/14/22
United States      3,900,000       3,994,429
e
Kazakhstan Temir Zholy Finance BV, senior bond, 144A, 6.95%, 7/10/42
Kazakhstan 3,200,000   4,114,080
e
Mexico City Airport Trust, senior secured bond, first lien, 144A, 5.50%, 7/31/47
Mexico 2,000,000   1,993,620
f
RZD Capital PLC, (Russian Railways), loan participation, senior bond, Reg S, 5.70%, 4/05/22
Russia 3,200,000   3,402,688
          27,316,133
  Utilities 1.1%        
e
Calpine Corp., senior secured bond, first lien, 144A, 5.875%, 1/15/24
United States 4,000,000   4,100,000
 
Dominion Energy Inc., junior sub. note, 2.579%, 7/01/20
United States 5,200,000   5,203,143
e
Korea East-West Power Co. Ltd., senior note, 144A, 3.875%, 7/19/23
South Korea 3,300,000   3,457,311
 
PSEG Power LLC, senior note, 3.00%, 6/15/21
United States 7,700,000   7,761,071
 
The Southern Co., senior note, 2.35%, 7/01/21
United States 6,500,000   6,484,262
e
State Grid Overseas Investment 2016 Ltd., senior note, 144A, 2.75%, 5/04/22
China 9,400,000   9,418,518
          36,424,305
 
Total Corporate Bonds (Cost $811,216,408)
      815,792,516
g Senior Floating Rate Interests 3.2%        
  Automobiles & Components 0.2%        
  Adient US LLC,        
 
Initial Term Loans, 6.815%, (3-month USD LIBOR + 4.25%), 5/06/24
United States        517,500         498,904
 
Initial Term Loans, 6.889%, (6-month USD LIBOR + 4.25%), 5/06/24
United States      1,552,500       1,496,711
  |  30
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
g Senior Floating Rate Interests (continued)        
  Automobiles & Components (continued)        
 
Allison Transmission Inc., Initial Term Loans, 4.261%, (1-month USD LIBOR + 2.00%), 3/29/26
United States        531,465         $535,259
 
Thor Industries Inc., Initial USD Term Loans, 6.188%, (1-month USD LIBOR + 3.75%), 2/01/26
United States      2,037,153       2,018,054
 
TI Group Automotive Systems LLC, Initial US Term Loan, 4.734%, (1-month USD LIBOR + 2.50%), 6/30/22
United States      1,211,535       1,210,021
          5,758,949
  Capital Goods 0.0%†        
 
Altra Industrial Motion Corp., Term Loan, 4.234%, (1-month USD LIBOR + 2.00%), 10/01/25
United States        593,326         590,602
 
Doncasters U.S. Finance LLC, Second Lien Term Loans, 10.58%, (3-month USD LIBOR + 8.25%), 10/09/20
United States 881,575   263,842
 
Harsco Corp., Term Loan B-2, 4.50%, (1-month USD LIBOR + 2.25%), 12/10/24
United States 63,826   64,012
 
Onsite Rental Group Operations Pty. Ltd., Term Loan, 6.766%, (1-month USD LIBOR + 4.50%), 10/25/22
Australia 254,234   251,055
          1,169,511
  Commercial & Professional Services 0.2%        
 
United Rentals North America Inc., Initial Term Loans, 3.984%, (1-month USD LIBOR + 1.75%), 10/31/25
United States 4,695,360   4,710,033
  Consumer Services 0.3%        
 
Aristocrat Technologies Inc., Term B-3 Loans, 4.028%, (3-month USD LIBOR + 1.75%), 10/19/24
United States 3,237,791   3,243,052
 
Avis Budget Car Rental LLC, Tranche B Term Loans, 4.24%, (1-month USD LIBOR + 2.00%), 2/13/25
United States 1,524,629   1,523,996
 
Eldorado Resorts Inc., Initial Term Loan, 4.563% - 4.688%, (1-month USD LIBOR + 2.25%), 4/17/24
United States 1,587,555   1,586,893
 
Hilton Worldwide Finance LLC, Refinanced Series B-2 Term Loans, 4.016%, (1-month USD LIBOR + 1.75%), 6/17/26
United States 1,650,000   1,657,735
 
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC (Yum Brands), Term Loan B, 4.05%, (1-month USD LIBOR + 1.75%), 4/03/25
United States 1,795,454   1,797,690
          9,809,366
  Diversified Financials 0.1%        
 
Asurion LLC, Second Lien Replacement B-2 Term Loans, 8.734%, (1-month USD LIBOR + 6.50%), 8/04/25
United States 47,559   48,451
 
First Eagle Holdings Inc., Initial Term Loans, 5.08%, (3-month USD LIBOR + 2.75%), 12/01/24
United States 872,709   874,345
 
Russell Investments U.S. Institutional Holdco Inc., Initial Term Loan, 5.484%, (1-month USD LIBOR + 3.25%), 6/01/23
United States 339,126   337,148
 
Trans Union LLC, 2017 Replacement Term A-2 Loans, 3.734%, (1-month USD LIBOR + 1.50%), 8/09/22
United States 996,017   995,394
          2,255,338
  |  31
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
g Senior Floating Rate Interests (continued)        
  Energy 0.3%        
 
Fieldwood Energy LLC, Closing Date Loans, 7.506%, (3-month USD LIBOR + 5.25%), 4/11/22
United States      6,760,617       $6,253,571
 
Foresight Energy LLC, Term Loans, 8.272%, (3-month USD LIBOR + 5.75%), 3/28/22
United States      1,620,690       1,215,518
  Utex Industries Inc.,        
 
First Lien Initial Term Loan, 6.234%, (1-month USD LIBOR + 4.00%), 5/21/21
United States        686,395         640,635
 
Second Lien Initial Term Loan, 9.484%, (1-month USD LIBOR + 7.25%), 5/20/22
United States         71,339          65,007
  Wolverine Fuels Holding LLC,        
 
First Lien Initial Term Loan, 8.272%, (3-month USD LIBOR + 5.75%), 8/14/20
United States      1,440,083       1,417,881
 
Second Lien Initial Term Loan, 13.272%, (3-month USD LIBOR + 10.75%), 2/16/21
United States        427,667         405,215
          9,997,827
  Food & Staples Retailing 0.0%†        
 
Aramark Corp., U.S. Term B-3 Loan, 4.08%, (3-month USD LIBOR + 1.75%), 3/11/25
United States 95,905   96,104
  Food, Beverage & Tobacco 0.2%        
 
CSM Bakery Supplies LLC, Second Lien Term Loan, 10.04%, (3-month USD LIBOR + 7.75%), 7/03/21
United States 772,194   718,784
 
JBS USA Lux SA, New Term Loans, 4.734%, (1-month USD LIBOR + 2.50%), 5/01/26
United States 3,795,299   3,805,182
 
Post Holdings Inc., Series A Incremental Term Loans, 4.27%, (1-month USD LIBOR + 2.00%), 5/24/24
United States 1,426,159   1,427,815
          5,951,781
  Health Care Equipment & Services 0.2%        
 
HCA Inc., Term Loan B11, 4.08%, (3-month USD LIBOR + 1.75%), 3/18/23
United States 1,316,152   1,320,429
 
IQVIA Inc., Term B-2 Dollar Loans, 4.33%, (3-month USD LIBOR + 2.00%), 1/20/25
United States 3,541,205   3,554,485
          4,874,914
  Household & Personal Products 0.1%        
b FGI Operating Co. LLC (Freedom Group),        
 
h Term Loan, PIK, 12.518%, (3-month USD LIBOR + 10.00%), 5/15/22
United States      1,074,382       1,035,888
 
Term Loan FILO, 10.018% - 10.022%, (3-month USD LIBOR + 7.50%), 5/15/21
United States      2,140,156       2,134,928
          3,170,816
  Materials 0.4%        
  Appvion Operations, Inc.,        
 
Term Loan, 8.32%, (3-month USD LIBOR + 6.00%), 6/15/26
United States         34,803          34,629
 
Term Loan, 8.22%, (6-month USD LIBOR + 6.00%), 6/15/26
United States        525,968         523,338
  |  32
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
g Senior Floating Rate Interests (continued)        
  Materials (continued)        
 
Ashland LLC, Term B Loan, 3.984% - 4.019%, (1-month USD LIBOR + 1.75%), 5/17/24
United States      4,184,305       $4,184,305
 
Axalta Coating Systems U.S. Holdings Inc., Term B-3 Dollar Loan, 4.08%, (3-month USD LIBOR + 1.75%), 6/01/24
United States      1,795,455       1,789,144
 
Chemours Co., Tranche B-2 US$ Term Loan, 3.99%, (1-month USD LIBOR + 1.75%), 4/03/25
United States      1,753,100       1,668,711
 
Crown Americas LLC, Dollar Term B Loan, 4.369%, (1-month USD LIBOR + 2.00%), 4/03/25
United States      1,052,971       1,059,405
  Oxbow Carbon LLC,        
 
Second Lien Term Loan, 9.734%, (1-month USD LIBOR + 7.50%), 1/04/24
United States        200,295         200,796
 
Tranche A Term Loan, 4.734%, (1-month USD LIBOR + 2.50%), 1/04/22
United States      1,173,000       1,167,135
 
Tranche B Term Loan, 5.984%, (1-month USD LIBOR + 3.75%), 1/04/23
United States        555,000         558,469
          11,185,932
  Media & Entertainment 0.3%        
 
Charter Communications Operating LLC, Term A-2 Loan, 3.83%, (3-month USD LIBOR + 1.50%), 3/31/23
United States 1,146,294   1,143,786
 
CSC Holdings LLC, March 2017 Incremental Term Loans, 4.575%, (1-month USD LIBOR + 2.25%), 7/17/25
United States 2,198,501   2,182,909
 
Go Daddy Operating Co. LLC, Tranche B-1 Term Loans, 4.234%, (1-month USD LIBOR + 2.00%), 2/15/24
United States 1,354,799   1,360,516
 
Gray Television Inc., Term C Loan, 4.832%, (3-month USD LIBOR + 2.50%), 1/02/26
United States 376,867   378,347
 
Lions Gate Capital Holdings LLC, Term A Loan, 3.984%, (1-month USD LIBOR + 1.75%), 3/22/23
Canada 146,619   145,458
 
Live Nation Entertainment Inc., Term B-3 Loans, 4.00%, (1-month USD LIBOR + 1.75%), 10/31/23
United States 1,795,408   1,797,652
 
Mediacom Illinois LLC, Tranche N Term Loan, 4.10%, (1-week USD LIBOR + 1.75%), 2/15/24
United States 3,503,365   3,516,461
          10,525,129
  Pharmaceuticals, Biotechnology & Life Sciences 0.3%        
 
Endo Luxembourg Finance Co. I S.A.R.L. and Endo LLC, Initial Term Loans, 6.50%, (1-month USD LIBOR + 4.25%), 4/29/24
United States 3,385,736   3,078,480
 
Grifols Worldwide Operations USA Inc., Tranche B Term Loan, 4.599%, (1-week USD LIBOR + 2.25%), 1/31/25
United States 1,424,146   1,429,376
j
Horizon Pharma Inc., Sixth Amendment Refinanced Term Loans, 4.938%, (1-month USD LIBOR + 2.50%), 5/22/26
United States 1,452,527   1,455,251
 
Syneos Health Inc., Initial Term B Loans, 4.234%, (1-month USD LIBOR + 2.00%), 8/01/24
United States 2,751,305   2,751,662
  Valeant Pharmaceuticals International,        
 
First Incremental Term Loan, 5.129%, (1-month USD LIBOR + 2.75%), 11/27/25
United States      1,875,000       1,876,406
 
Initial Term Loans, 5.379%, (1-month USD LIBOR + 3.00%), 6/02/25
United States        499,098         500,501
          11,091,676
  |  33
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
g Senior Floating Rate Interests (continued)        
  Retailing 0.2%        
h 99 Cents Only Stores,        
 
First Lien Term Loan, PIK, 8.83% - 9.022%, (3-month USD LIBOR + 6.50%), 1/13/22
United States        202,825         $182,923
 
First Lien Term Loan, PIK, 9.151%, (6-month USD LIBOR + 6.50%), 1/13/22
United States        246,336         222,164
 
Ascena Retail Group Inc., Tranche B Term Loan, 6.75%, (1-month USD LIBOR + 4.50%), 8/21/22
United States      2,946,294       1,819,337
 
General Nutrition Centers Inc., Tranche B-2 Term Loans, 10.99%, (1-month USD LIBOR + 8.75%), 3/04/21
United States      1,166,711       1,118,876
 
Harbor Freight Tools USA Inc., Refinancing Loans, 4.734%, (1-month USD LIBOR + 2.50%), 8/19/23
United States      2,538,548       2,500,998
  Jo-Ann Stores, Inc.,        
 
Initial Loans, 7.261%, (1-month USD LIBOR + 5.00%), 10/23/23
United States         71,417          61,895
 
Initial Loans, 7.259%, (3-month USD LIBOR + 5.00%), 10/23/23
United States      1,884,407       1,633,153
 
PETCO Animal Supplies Stores Inc., Second Amendment Term Loans, 5.506%, (3-month USD LIBOR + 3.25%), 1/26/23
United States 141,214   110,147
j
PetSmart Inc., Amended Loan, 6.38%, (1-month USD LIBOR + 4.00%), 3/11/22
United States 39,430   38,778
 
Wand NewCo. 3 Inc., First Lien Term Loan, 5.86%, (1-month USD LIBOR + 3.50%), 2/05/26
United States 213,851   215,455
          7,903,726
  Semiconductors & Semiconductor Equipment 0.1%        
  MKS Instruments Inc.,        
 
Tranche B-4 Term Loan, 4.234%, (1-month USD LIBOR + 2.00%), 4/29/23
United States         96,301          96,530
 
Tranche B-5 Term Loans, 4.484%, (1-month USD LIBOR + 2.25%), 2/01/26
United States        427,466         428,868
 
ON Semiconductor Corp., 2018 New Replacement Term B-3 Loans, 3.984%, (1-month USD LIBOR + 1.75%), 3/31/23
United States 3,234,379   3,229,663
          3,755,061
  Software & Services 0.1%        
j
Carbonite Inc., Initial Term Loan, 6.006%, (3-month USD LIBOR + 3.75%), 3/26/26
United States 156,768   157,094
 
LegalZoom.com Inc., 2018 Term Loans, 6.734%, (1-month USD LIBOR + 4.50%), 11/21/24
United States 230,695   231,774
 
TIBCO Software Inc., Term B-2 Loans, 6.39%, (1-month USD LIBOR + 4.00%), 6/30/26
United States 1,380,000   1,384,133
 
WEX Inc., Term B-3 Loan, 4.484%, (1-month USD LIBOR + 2.25%), 5/17/26
United States 381,225   382,417
          2,155,418
  Technology Hardware & Equipment 0.0%†        
 
CommScope Inc., Initial Term Loans, 5.484%, (1-month USD LIBOR + 3.25%), 4/04/26
United States 914,212   916,921
  |  34
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
g Senior Floating Rate Interests (continued)        
  Telecommunication Services 0.1%        
  Global Tel*Link Corp.,        
 
j First Lien Term Loan, 6.484%, (1-month USD LIBOR + 4.25%), 11/29/25
United States        955,534         $910,624
 
Second Lien Term Loan, 10.484%, (1-month USD LIBOR + 8.25%), 11/29/26
United States        242,354         235,083
  Securus Technologies Holdings Inc.,        
 
Initial Term Loan, 6.83%, (3-month USD LIBOR + 4.50%), 11/01/24
United States        349,114         318,567
 
Second Lien Initial Loan, 10.58%, (3-month USD LIBOR + 8.25%), 11/01/25
United States        790,636         716,843
j
Zayo Group LLC, 2017 Incremental Refinancing B-1 Term Loan, 4.234%, (1-month USD LIBOR + 2.00%), 1/19/21
United States 1,196,939   1,198,311
          3,379,428
  Transportation 0.1%        
 
Air Canada, Term Loan, 4.241%, (1-month USD LIBOR + 2.00%), 10/06/23
Canada 34,747   34,892
 
Allegiant Travel Co., Class B Term Loans, 7.065%, (3-month USD LIBOR + 4.50%), 2/05/24
United States 310,278   311,248
 
International Seaways Operating Corp., Initial Term Loans, 8.24%, (3-month USD LIBOR + 6.00%), 6/22/22
United States 737,175   737,175
 
Navios Maritime Midstream Partners LP, Initial Term Loan, 6.89%, (3-month USD LIBOR + 4.50%), 6/18/20
Marshall Islands 1,187,964   1,170,144
 
Navios Maritime Partners LP, Initial Term Loan, 7.44%, (3-month USD LIBOR + 5.00%), 9/14/20
United States 1,497,772   1,492,156
          3,745,615
  Utilities 0.0%†        
  EFS Cogen Holdings I LLC (Linden),        
 
Term B Advance, 5.49%, (1-month USD LIBOR + 3.25%), 6/28/23
United States         40,424          40,323
 
Term B Advance, 5.58%, (3-month USD LIBOR + 3.25%), 6/28/23
United States        102,702         102,445
          142,768
 
Total Senior Floating Rate Interests (Cost $105,307,198)
      102,596,313
  Marketplace Loans (Cost $21,317,668) 0.6%        
  Diversified Financials 0.6%        
b
Lending Club, 6.00%-27.27%, 9/19/21-12/13/23
United States 21,317,668   20,165,133
  Foreign Government and Agency Securities 5.9%        
e
Angolan Government International Bond, senior note, 144A, 8.25%, 5/09/28
Angola 7,400,000   7,918,222
f
Banque Centrale de Tunisie International Bond, senior note, Reg S, 5.625%, 2/17/24
Tunisia 7,300,000 EUR 8,010,690
e
Dominican Republic, senior note, 144A, 8.90%, 2/15/23
Dominican Republic 283,400,000 DOP 5,629,635
 
The Export-Import Bank of Korea, senior note, 2.25%, 1/21/20
South Korea 11,200,000   11,194,344
 
Government of Canada, 1.50%, 9/01/24
Canada 43,200,000 CAD 32,744,929
  |  35
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Foreign Government and Agency Securities (continued)        
  Government of Colombia,        
 
senior bond, 9.85%, 6/28/27
Colombia 11,800,000,000 COP     $4,592,567
 
senior bond, 5.00%, 6/15/45
Colombia      5,800,000       6,450,267
e
Government of Gabon, 144A, 6.375%, 12/12/24
Gabon      8,000,000       7,961,200
e
Government of Iraq, 144A, 5.80%, 1/15/28
Iraq      8,000,000       7,973,440
e
Government of Kazakhstan, senior bond, 144A, 4.875%, 10/14/44
Kazakhstan      3,500,000       4,060,735
 
Government of Mexico, senior note, 4.15%, 3/28/27
Mexico      7,600,000       7,932,614
 
Government of Peru, 6.55%, 3/14/37
Peru 2,200,000   3,130,105
 
Government of South Africa, senior bond, 7.00%, 2/28/31
South Africa 115,300,000 ZAR 6,797,063
e,f
Government of Spain, senior note, 144A, Reg S, 0.25%, 7/30/24
Spain 22,500,000 EUR 25,552,265
e
Government of Ukraine, senior bond, 144A, 7.375%, 9/25/32
Ukraine 8,100,000   8,244,909
k
Government of Uruguay, senior bond, Index Linked, 3.70%, 6/26/37
Uruguay 217,755,532 UYU 6,769,860
f
Italy Buoni Poliennali Del Tesoro, Reg S, 1.75%, 7/01/24
Italy 23,200,000 EUR 26,830,349
 
The Korea Development Bank, senior note, 3.375%, 3/12/23
South Korea 6,500,000   6,721,942
 
Nota do Tesouro Nacional, 10.00%, 1/01/21
Brazil 2,350i BRL 651,240
 
Total Foreign Government and Agency Securities

(Cost $188,427,639)
      189,166,376
  U.S. Government and Agency Securities 17.6%        
  U.S. Treasury Note,        
 
2.125%, 1/31/21
United States     55,500,000      55,642,002
 
2.625%, 5/15/21
United States     33,000,000      33,409,922
 
2.25%, 7/31/21
United States     39,000,000      39,278,789
 
2.00%, 8/31/21
United States    108,000,000     108,265,782
 
2.125%, 9/30/21
United States    117,000,000     117,628,418
 
2.00%, 10/31/21
United States     94,000,000      94,280,898
 
k Index Linked, 1.375%, 1/15/20
United States     25,886,189      25,789,116
 
k Index Linked, 0.125%, 4/15/21
United States     19,448,118      19,219,031
 
k Index Linked, 0.125%, 1/15/22
United States     40,730,293      40,372,521
 
k Index Linked, 0.125%, 7/15/22
United States     31,179,289      31,025,743
 
Total U.S. Government and Agency Securities

(Cost $561,333,027)
      564,912,222
  Asset-Backed Securities and Commercial Mortgage-Backed Securities 41.4%        
  Automobiles & Components 0.0%†        
l
Countrywide Asset-Backed Certificates, 2002-3, 1A1, FRN, 3.006%, (1-month USD LIBOR + 0.74%), 5/25/32
United States 1,292   1,262
  Banks 0.2%        
m Commercial Mortgage Trust,        
 
2006-GG7, AJ, FRN, 5.821%, 7/10/38
United States      1,908,000       1,768,060
 
2006-GG7, AM, FRN, 5.821%, 7/10/38
United States        144,957         145,944
  |  36
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Banks (continued)        
l
CWABS Inc. Asset-Backed Certificates, 2004-1, M1, FRN, 3.016%, (1-month USD LIBOR + 0.75%), 3/25/34
United States        145,311         $146,453
m,n
GE Capital Commercial Mortgage Corp. Trust, 2007-C1, AM, FRN, 5.606%, 12/10/49
United States        858,348         784,805
l
Merrill Lynch Mortgage Investors Trust, 2003-A, 1A, FRN, 3.006%, (1-month USD LIBOR + 0.74%), 3/25/28
United States        221,603         220,550
l
Morgan Stanley ABS Capital I Inc. Trust, 2005-WMC, M2, FRN, 3.001%, (1-month USD LIBOR + 0.735%), 1/25/35
United States         36,920          37,255
m Wells Fargo Mortgage Backed Securities Trust,        
 
2005-AR, 1A1, FRN, 5.084%, 2/25/35
United States        670,436         697,153
 
2005-AR9, 2A2, FRN, 4.719%, 10/25/33
United States         91,906          92,982
          3,893,202
  Diversified Financials 41.2%        
e,l
Alinea CLO Ltd., 2018-1A, B, 144A, FRN, 3.928%, (3-month USD LIBOR + 1.65%), 7/20/31
United States 3,000,000   2,965,380
  American Express Credit Account Master Trust,        
 
2017-1, B, 2.10%, 9/15/22
United States     13,480,000      13,451,367
 
2017-6, A, 2.04%, 5/15/23
United States     16,300,000      16,280,339
 
2018-1, A, 2.67%, 10/17/22
United States     12,000,000      12,026,412
l American Home Mortgage Investment Trust,        
 
2004-3, 4A, FRN, 4.044%, (6-month USD LIBOR + 1.50%), 10/25/34
United States      1,515,964       1,516,621
 
2005-1, 6A, FRN, 4.22%, (6-month USD LIBOR + 2.00%), 6/25/45
United States        793,226         811,115
e
American Homes 4 Rent, 2015-SFR1, A, 144A, 3.467%, 4/17/52
United States 5,664,714   5,844,971
l
Ameriquest Mortgage Securities Inc. Asset-Backed Pass-Through Certificates, 2004-R4, M1, FRN, 3.091%, (1-month USD LIBOR + 0.825%), 6/25/34
United States 421,629   425,230
e,m AMMC CLO 15 Ltd.,        
 
2014-15A, ARR, 144A, FRN, 3.563%, 1/15/32
United States      4,700,000       4,692,151
 
2014-15A, BRR, 144A, FRN, 4.103%, 1/15/32
United States      1,494,355       1,487,033
e AMMC CLO XI Ltd.,        
 
m 2012-11A, A1R2, 144A, FRN, 3.276%, 4/30/31
United States      2,750,000       2,725,112
 
l 2012-11A, BR2, 144A, FRN, 3.866%, (3-month USD LIBOR + 1.60%), 4/30/31
United States      1,700,000       1,668,346
 
l 2012-11A, CR2, 144A, FRN, 4.166%, (3-month USD LIBOR + 1.90%), 4/30/31
United States        450,000         432,081
 
l 2012-11A, DR2, 144A, FRN, 5.116%, (3-month USD LIBOR + 2.85%), 4/30/31
United States        400,000         376,064
e,l
Antares CLO Ltd., 2018-1A, B, 144A, FRN, 3.928%, (3-month USD LIBOR + 1.65%), 4/20/31
United States 5,400,000   5,245,182
e,l
ARES CLO Ltd., 2018-48A, B, 144A, FRN, 3.858%, (3-month USD LIBOR + 1.58%), 7/20/30
United States 1,000,000   992,900
e,m
ARES L CLO Ltd., 2018-50A, B, 144A, FRN, 4.003%, 1/15/32
United States 4,000,000   3,982,840
e,m
ARES LII CLO Ltd., 2019-52A, C, 144A, FRN, 4.958%, 4/22/31
United States 1,000,000   998,980
l
Argent Securities Inc. Asset-Backed Pass-Through Certificates, 2005-W2, A2C, FRN, 2.626%, (1-month USD LIBOR + 0.36%), 10/25/35
United States 338,307   339,830
  |  37
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
e,l
Atrium IX, 9A, AR, 144A, FRN, 3.761%, (3-month USD LIBOR + 1.24%), 5/28/30
United States      2,000,000       $1,999,040
e,m
Atrium XII, 2012A, CR, 144A, FRN, 3.108%, 4/22/27
United States      9,000,000       8,986,410
e,l Atrium XIII,        
 
2013A, B, 144A, FRN, 3.759%, (3-month USD LIBOR + 1.50%), 11/21/30
United States      1,000,000         993,750
 
2013A, C, 144A, FRN, 4.059%, (3-month USD LIBOR + 1.80%), 11/21/30
United States      1,000,000         966,130
e,m
Atrium XIV LLC, 14A, B, 144A, FRN, 4.022%, 8/23/30
United States      2,400,000       2,397,048
e,m
Atrium XV, 15A, B, 144A, FRN, 4.009%, 1/23/31
United States 2,000,000   1,992,620
e,l
Bain Capital Credit CLO, 2018-1A, A1, 144A, FRN, 3.219%, (3-month USD LIBOR + 0.96%), 4/23/31
United States 2,000,000   1,978,560
e
BAMLL Commercial Mortgage Securities Trust, 2012-PARK, A, 144A, 2.959%, 12/10/30
United States 3,200,000   3,279,884
m,o
Bank, 2018-BN13, XA, IO, FRN, 0.665%, 8/15/61
United States 106,971,459   3,701,844
e,m
BCC Middle Market CLO LLC, 2018-1A, A2, 144A, FRN, 4.428%, 10/20/30
United States 2,100,000   2,075,325
l
Bear Stearns ALT-A Trust, 2004-13, A2, FRN, 3.146%, (1-month USD LIBOR + 0.88%), 11/25/34
United States 5,882   5,890
e,l
Bellemeade Re Ltd., 2018-1A, M1B, 144A, FRN, 3.866%, (1-month USD LIBOR + 1.60%), 4/25/28
Bermuda 5,870,000   5,887,845
e,l Betony CLO 2 Ltd.,        
 
2018-1A, A2, 144A, FRN, 3.866%, (3-month USD LIBOR + 1.60%), 4/30/31
United States      3,500,000       3,438,505
 
2018-1A, C, 144A, FRN, 5.166%, (3-month USD LIBOR + 2.90%), 4/30/31
United States        300,000         288,426
e,m BlueMountain CLO Ltd.,        
 
2012-2A, AR2, 144A, FRN, 3.57%, 11/20/28
United States      2,841,775       2,839,985
 
2012-2A, BR2, 144A, FRN, 3.97%, 11/20/28
United States      2,051,917       2,045,905
 
2014-2A, A2R2, 144A, FRN, 3.678%, 10/20/30
United States        974,225         958,014
 
2014-2A, CR2, 144A, FRN, 4.478%, 10/20/30
United States      1,000,000         973,120
 
2018-3A, B, 144A, FRN, 4.046%, 10/25/30
United States      4,000,000       3,994,240
 
2018-3A, C, 144A, FRN, 4.476%, 10/25/30
United States      1,785,715       1,750,376
e,m BlueMountain CLO XXIV Ltd.,        
 
2019-24A, A2, 144A, FRN, 4.224%, 4/20/31
United States      4,687,500       4,708,922
 
2019-24A, C, 144A, FRN, 5.324%, 4/20/31
United States      1,750,000       1,754,042
e,l
BlueMountain Fuji U.S. CLO I Ltd., 2017-1A, C, 144A, FRN, 4.628%, (3-month USD LIBOR + 2.35%), 7/20/29
United States 1,361,000   1,354,331
e,l BlueMountain Fuji U.S. CLO II Ltd.,        
 
2017-2A, A1A, 144A, FRN, 3.478%, (3-month USD LIBOR + 1.20%), 10/20/30
United States      3,500,000       3,502,520
 
2017-2A, B, 144A, FRN, 4.428%, (3-month USD LIBOR + 2.15%), 10/20/30
United States      1,000,000         988,120
e,l BlueMountain Fuji U.S. CLO III Ltd.,        
 
2017-3A, A2, 144A, FRN, 3.453%, (3-month USD LIBOR + 1.15%), 1/15/30
United States      1,000,000         975,240
 
2017-3A, C, 144A, FRN, 4.003%, (3-month USD LIBOR + 1.70%), 1/15/30
United States        500,000         478,900
  |  38
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
e
BRAVO Residential Funding Trust, 2019-1, A1C, 144A, 3.50%, 3/25/58
United States      7,120,082       $7,222,833
e Burnham Park CLO Ltd.,        
 
l 2016-1A, A, 144A, FRN, 3.708%, (3-month USD LIBOR + 1.43%), 10/20/29
United States      2,240,000       2,243,830
 
m 2016-1A, BR, 144A, FRN, 3.778%, 10/20/29
United States      2,321,575       2,296,293
e,m
BX Commercial Mortgage Trust, 2018-IND, A, 144A, FRN, 3.075%, 11/15/35
United States      5,757,957       5,763,688
 
Capital One Multi-Asset Execution Trust, 2017-A4, A4, 1.99%, 7/17/23
United States     14,230,000      14,203,425
e,l Carlyle Global Market Strategies CLO Ltd.,        
 
2014-1A, A2R2, 144A, FRN, 3.433%, (3-month USD LIBOR + 1.13%), 4/17/31
United States      1,200,000       1,167,888
 
2014-4RA, A2, 144A, FRN, 3.903%, (3-month USD LIBOR + 1.60%), 7/15/30
United States     12,000,000      11,871,840
e,m
Carlyle GMS Finance MM CLO LLC, 2015-1A, A2R, 144A, FRN, 4.503%, 10/15/31
United States 6,500,000   6,446,310
e,l Carlyle U.S. CLO Ltd.,        
 
2017-1A, A1A, 144A, FRN, 3.578%, (3-month USD LIBOR + 1.30%), 4/20/31
United States      1,000,000       1,000,780
 
2017-2A, B, 144A, FRN, 4.678%, (3-month USD LIBOR + 2.40%), 7/20/31
United States      2,110,000       2,094,639
 
2017-3A, B, 144A, FRN, 4.628%, (3-month USD LIBOR + 2.35%), 7/20/29
United States      1,250,000       1,234,450
 
2017-5A, B, 144A, FRN, 4.078%, (3-month USD LIBOR + 1.80%), 1/20/30
United States      2,200,000       2,119,238
e,l
Catamaran CLO Ltd., 2014-2A, BR, 144A, FRN, 5.25%, (3-month USD LIBOR + 2.95%), 10/18/26
United States 3,011,300   3,012,474
e
Centerline REIT Inc., 2004-RR3, B, 144A, 5.04%, 9/21/45
United States 263,968   262,395
e,m CIM Trust,        
 
2018-INV1, A4, 144A, FRN, 4.00%, 8/25/48
United States      7,940,821       8,242,299
 
2019-INV2, A3, 144A, FRN, 4.00%, 5/25/49
United States     15,209,960      15,763,019
  Citibank Credit Card Issuance Trust,        
 
2017-A3, A3, 1.92%, 4/07/22
United States     11,000,000      10,970,266
 
2018-A1, A1, 2.49%, 1/20/23
United States     13,700,000      13,771,998
e,m
Cole Park CLO Ltd., 2015-1A, BR, 144A, FRN, 3.878%, 10/20/28
United States 1,714,286   1,702,680
e,m
Columbia Cent CLO 27 Ltd., 2018-27A, A2A, 144A, FRN, 3.876%, 10/25/28
United States 1,538,462   1,526,847
e,m
COMM Mortgage Trust, 2014-277P, A, 144A, FRN, 3.732%, 8/10/49
United States 2,980,000   3,157,340
m
Conseco Finance Securitizations Corp., 2002-2, M1, FRN, 7.424%, 3/01/33
United States 612,714   664,413
 
Conseco Financial Corp., 1998-6, A8, 6.66%, 6/01/30
United States 2,961,986   3,075,795
e,m Consumer Loan Underlying Bond CLUB Certificate Issuer Trust I,        
 
2018-14, PT, 144A, FRN, 9.811%, 9/16/41
United States      3,216,730       3,199,573
 
2018-29, PT, 144A, FRN, 28.216%, 12/15/43
United States        830,839         699,580
 
2018-8, 144A, FRN, 9.03%, 6/17/41
United States      2,448,565       2,404,300
 
2019-26, PT, 144A, FRN, 21.457%, 8/15/44
United States      2,707,434       2,630,302
 
2019-S1, PT, 144A, FRN, 16.69%, 4/15/44
United States      2,417,863       2,234,525
  |  39
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
e,m Consumer Loan Underlying Bond CLUB Certificate Issuer Trust I, (continued)        
 
2019-S2, PT, 144A, FRN, 15.136%, 5/16/44
United States      1,706,788       $1,604,187
 
2019-S3, PT, 144A, FRN, 13.369%, 6/15/44
United States        994,670         935,836
 
2019-S4, PT, 144A, FRN, 14.291%, 8/15/44
United States      2,108,187       1,970,317
e,l
Cook Park CLO Ltd., 2018-1A, A2, 144A, FRN, 3.423%, (3-month USD LIBOR + 1.12%), 4/17/30
United States      1,000,000         991,560
e
Core Industrial Trust, 2015-CALW, A, 144A, 3.04%, 2/10/34
United States     12,678,992      12,907,509
m
Countrywide Home Loans, 2004-11, 2A1, FRN, 3.847%, 7/25/34
United States 1,348,365   1,367,258
 
Credit Suisse First Boston Mortgage Securities Corp., 2004-6, 3A1, 5.00%, 9/25/19
United States 167,665   151,542
e,m
CSMC Trust, 2014-IVR3, A1, 144A, FRN, 3.50%, 7/25/44
United States 1,774,912   1,806,736
  Discover Card Execution Note Trust,        
 
2018-A4, A4, 3.11%, 1/16/24
United States      8,230,000       8,390,984
 
m 2019-A2, A, FRN, 2.54%, 12/15/23
United States      9,250,000       9,268,413
e,l
Dryden 41 Senior Loan Fund, 2015-41A, AR, 144A, FRN, 3.273%, (3-month USD LIBOR + 0.97%), 4/15/31
United States 3,025,000   2,989,759
e,m
Dryden 45 Senior Loan Fund, 2016-45A, CR, 144A, FRN, 4.503%, 10/15/30
United States 625,000   614,844
e,l
Dryden 49 Senior Loan Fund, 2017-49A, C, 144A, FRN, 4.65%, (3-month USD LIBOR + 2.35%), 7/18/30
United States 870,000   863,953
e,l Dryden 50 Senior Loan Fund,        
 
2017-50A, A1, 144A, FRN, 3.523%, (3-month USD LIBOR + 1.22%), 7/15/30
United States      2,640,000       2,635,010
 
2017-50A, C, 144A, FRN, 4.553%, (3-month USD LIBOR + 2.25%), 7/15/30
United States      2,150,000       2,150,623
e,l Dryden 55 CLO Ltd.,        
 
2018-55A, A1, 144A, FRN, 3.323%, (3-month USD LIBOR + 1.02%), 4/15/31
United States      3,000,000       2,974,410
 
2018-55A, C, 144A, FRN, 4.203%, (3-month USD LIBOR + 1.90%), 4/15/31
United States        600,000         580,572
 
2018-55A, D, 144A, FRN, 5.153%, (3-month USD LIBOR + 2.85%), 4/15/31
United States        300,000         285,240
e,l Dryden 58 CLO Ltd.,        
 
2018-58A, A2, 144A, FRN, 3.553%, (3-month USD LIBOR + 1.25%), 7/17/31
United States      1,600,000       1,573,184
 
2018-58A, B, 144A, FRN, 3.803%, (3-month USD LIBOR + 1.50%), 7/17/31
United States     11,000,000      10,842,590
 
2018-58A, D, 144A, FRN, 5.003%, (3-month USD LIBOR + 2.70%), 7/17/31
United States      1,000,000         953,970
e,l Dryden 64 CLO Ltd.,        
 
2018-64A, A, 144A, FRN, 3.27%, (3-month USD LIBOR + 0.97%), 4/18/31
United States      6,500,000       6,444,815
 
2018-64A, D, 144A, FRN, 4.95%, (3-month USD LIBOR + 2.65%), 4/18/31
United States        500,000         478,145
  |  40
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
e,m
Dryden 70 CLO Ltd., 2018-70A, B, 144A, FRN, 4.022%, 1/16/32
United States        560,580         $554,862
e,m
Eaton Vance CLO Ltd., 2014-1RA, C, 144A, FRN, 4.403%, 7/15/30
United States        789,030         769,920
e,l
Ellington CLO III Ltd., 2018-3A, A1, 144A, FRN, 3.928%, (3-month USD LIBOR + 1.65%), 7/20/30
United States      3,400,000       3,384,700
  FHLMC Structured Agency Credit Risk Debt Notes,        
 
l 2013-DN2, M2, FRN, 6.516%, (1-month USD LIBOR + 4.25%), 11/25/23
United States      6,744,588       7,298,563
 
l 2014-DN1, M2, FRN, 4.466%, (1-month USD LIBOR + 2.20%), 2/25/24
United States        951,177         967,391
 
l 2014-DN2, M3, FRN, 5.866%, (1-month USD LIBOR + 3.60%), 4/25/24
United States     14,350,000      15,328,403
 
l 2014-DN3, M3, FRN, 6.266%, (1-month USD LIBOR + 4.00%), 8/25/24
United States      2,009,639       2,150,831
 
l 2014-DN4, M3, FRN, 6.816%, (1-month USD LIBOR + 4.55%), 10/25/24
United States      7,812,980       8,392,707
 
l 2014-HQ1, M3, FRN, 6.366%, (1-month USD LIBOR + 4.10%), 8/25/24
United States     10,997,210      11,770,125
 
l 2014-HQ2, M3, FRN, 6.016%, (1-month USD LIBOR + 3.75%), 9/25/24
United States     12,060,000      13,194,841
 
l 2014-HQ3, M3, FRN, 7.016%, (1-month USD LIBOR + 4.75%), 10/25/24
United States      3,580,345       3,828,943
 
l 2015-DN1, M3, FRN, 6.416%, (1-month USD LIBOR + 4.15%), 1/25/25
United States     14,004,887      14,648,400
 
l 2015-DNA1, M2, FRN, 4.116%, (1-month USD LIBOR + 1.85%), 10/25/27
United States      6,596,062       6,665,499
 
l 2015-DNA1, M3, FRN, 5.566%, (1-month USD LIBOR + 3.30%), 10/25/27
United States      4,500,000       4,835,630
 
l 2015-DNA2, M2, FRN, 4.866%, (1-month USD LIBOR + 2.60%), 12/25/27
United States      3,077,647       3,102,968
 
l 2015-DNA2, M3, FRN, 6.166%, (1-month USD LIBOR + 3.90%), 12/25/27
United States     18,171,000      19,088,174
 
l 2015-DNA3, M2, FRN, 5.116%, (1-month USD LIBOR + 2.85%), 4/25/28
United States      3,781,633       3,842,925
 
l 2015-DNA3, M3, FRN, 6.966%, (1-month USD LIBOR + 4.70%), 4/25/28
United States      6,970,000       7,781,512
 
l 2015-HQ1, M3, FRN, 6.066%, (1-month USD LIBOR + 3.80%), 3/25/25
United States     11,541,421      11,958,358
 
l 2015-HQ2, M3, FRN, 5.516%, (1-month USD LIBOR + 3.25%), 5/25/25
United States      6,860,000       7,335,760
 
l 2015-HQA1, M2, FRN, 4.916%, (1-month USD LIBOR + 2.65%), 3/25/28
United States      3,096,408       3,119,484
 
l 2015-HQA1, M3, FRN, 6.966%, (1-month USD LIBOR + 4.70%), 3/25/28
United States     18,500,000      19,987,744
 
l 2015-HQA2, M2, FRN, 5.066%, (1-month USD LIBOR + 2.80%), 5/25/28
United States      4,255,034       4,309,800
 
l 2016-DNA1, M2, FRN, 5.304%, (1-month USD LIBOR + 2.90%), 7/25/28
United States        160,324         161,939
 
l 2016-DNA1, M3, FRN, 7.954%, (1-month USD LIBOR + 5.55%), 7/25/28
United States     17,210,000      19,379,221
  |  41
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
  FHLMC Structured Agency Credit Risk Debt Notes, (continued)        
 
l 2016-DNA2, M2, FRN, 4.466%, (1-month USD LIBOR + 2.20%), 10/25/28
United States        345,245         $346,069
 
l 2016-DNA2, M3, FRN, 6.916%, (1-month USD LIBOR + 4.65%), 10/25/28
United States     14,197,000      15,360,488
 
l 2016-HQA1, M2, FRN, 5.016%, (1-month USD LIBOR + 2.75%), 9/25/28
United States        437,351         441,101
 
l 2016-HQA2, M2, FRN, 4.516%, (1-month USD LIBOR + 2.25%), 11/25/28
United States        584,833         590,315
 
l 2016-HQA2, M3, FRN, 7.416%, (1-month USD LIBOR + 5.15%), 11/25/28
United States      9,640,000      10,680,523
 
l 2016-HQA3, M2, FRN, 3.616%, (1-month USD LIBOR + 1.35%), 3/25/29
United States        218,889         219,999
 
l 2017-DNA3, M2, FRN, 4.766%, (1-month USD LIBOR + 2.50%), 3/25/30
United States      8,350,000       8,551,868
 
m 2017-HQA1, M2, FRN, 5.816%, 8/25/29
United States     15,764,156      16,713,188
 
l 2018-HQA1, M1, FRN, 2.966%, (1-month USD LIBOR + 0.70%), 9/25/30
United States      6,248,250       6,254,044
e,l Flagship CLO VIII Ltd.,        
 
2014-8A, ARR, 144A, FRN, 3.172%, (3-month USD LIBOR + 0.85%), 1/16/26
United States      5,109,299       5,101,430
 
2014-8A, DR, 144A, FRN, 5.372%, (3-month USD LIBOR + 3.05%), 1/16/26
United States      2,000,000       1,932,860
e,m
Flagstar Mortgage Trust, 2018-6RR, 1A3, 144A, FRN, 4.00%, 10/25/48
United States 8,028,421   8,224,794
  FNMA Connecticut Avenue Securities,        
 
l 2013-C01, M2, FRN, 7.516%, (1-month USD LIBOR + 5.25%), 10/25/23
United States     18,020,233      20,061,789
 
l 2014-C01, M1, FRN, 3.866%, (1-month USD LIBOR + 1.60%), 1/25/24
United States        700,332         700,878
 
l 2014-C02, 1M2, FRN, 4.866%, (1-month USD LIBOR + 2.60%), 5/25/24
United States     13,468,717      14,052,006
 
l 2014-C02, 2M2, FRN, 4.866%, (1-month USD LIBOR + 2.60%), 5/25/24
United States      1,286,476       1,337,980
 
l 2014-C03, 1M2, FRN, 5.266%, (1-month USD LIBOR + 3.00%), 7/25/24
United States     18,010,346      19,061,761
 
l 2014-C03, 2M2, FRN, 5.166%, (1-month USD LIBOR + 2.90%), 7/25/24
United States     19,699,504      20,675,236
 
l 2014-C04, 1M1, FRN, 7.166%, (1-month USD LIBOR + 4.90%), 11/25/24
United States     11,490,592      12,738,353
 
l 2014-C04, 2M2, FRN, 7.266%, (1-month USD LIBOR + 5.00%), 11/25/24
United States      5,333,127       5,811,814
 
l 2015-C01, 1M2, FRN, 6.566%, (1-month USD LIBOR + 4.30%), 2/25/25
United States     11,711,293      12,591,358
 
l 2015-C01, 2M2, FRN, 6.816%, (1-month USD LIBOR + 4.55%), 2/25/25
United States      6,088,691       6,394,236
 
l 2015-C02, 1M2, FRN, 6.266%, (1-month USD LIBOR + 4.00%), 5/25/25
United States     12,377,739      13,161,771
 
l 2015-C02, 2M2, FRN, 6.266%, (1-month USD LIBOR + 4.00%), 5/25/25
United States      7,441,491       7,760,933
  |  42
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
  FNMA Connecticut Avenue Securities, (continued)        
 
l 2015-C03, 1M2, FRN, 7.266%, (1-month USD LIBOR + 5.00%), 7/25/25
United States     11,246,210      $12,275,122
 
l 2015-C03, 2M2, FRN, 7.266%, (1-month USD LIBOR + 5.00%), 7/25/25
United States      7,053,719       7,526,630
 
m 2016-C01, 2M2, FRN, 9.216%, 8/25/28
United States      8,663,542       9,692,591
 
m 2016-C04, 1M2, FRN, 6.516%, 1/25/29
United States     15,320,000      16,358,077
 
l 2017-C01, 1M2, FRN, 5.816%, (1-month USD LIBOR + 3.55%), 7/25/29
United States     20,305,000      21,464,050
 
m 2017-C06, 1M2, FRN, 4.916%, 2/25/30
United States     12,970,000      13,356,378
 
l 2018-C02, 2M1, FRN, 2.916%, (1-month USD LIBOR + 0.65%), 8/25/30
United States      4,443,787       4,444,788
e,m
Galaxy XVIII CLO Ltd., 2018-28A, A2, 144A, FRN, 3.373%, 7/15/31
United States 6,500,000   6,488,105
e,m
Galaxy XXV CLO Ltd., 2018-25A, B, 144A, FRN, 3.926%, 10/25/31
United States 2,000,000   1,985,100
e,m Galaxy XXVI CLO Ltd.,        
 
2018-26A, A, 144A, FRN, 3.723%, 11/22/31
United States      3,429,602       3,422,743
 
2018-26A, B, 144A, FRN, 4.223%, 11/22/31
United States      2,100,000       2,096,325
 
2018-26A, D, 144A, FRN, 5.573%, 11/22/31
United States        293,478         285,249
e,l Galaxy XXVII CLO Ltd.,        
 
2018-27A, A, 144A, FRN, 3.545%, (3-month USD LIBOR + 1.02%), 5/16/31
United States      1,500,000       1,482,465
 
2018-27A, C, 144A, FRN, 5.275%, (3-month USD LIBOR + 2.75%), 5/16/31
United States        250,000         233,543
m
Greenpoint Manufactured Housing, 1999-5, M1A, FRN, 8.30%, 10/15/26
United States 391,330   414,005
l GSAA Home Equity Trust,        
 
2005-5, M3, FRN, 3.211%, (1-month USD LIBOR + 0.945%), 2/25/35
United States      2,157,247       2,196,105
 
2005-6, A3, FRN, 2.636%, (1-month USD LIBOR + 0.37%), 6/25/35
United States         78,082          78,317
l
GSAMP Trust, 2005-HE3, M2, FRN, 3.271%, (1-month USD LIBOR + 1.005%), 6/25/35
United States 113,372   113,695
m
GSR Mortgage Loan Trust, 2005-AR1, 1A1, FRN, 4.813%, 1/25/35
United States 245,826   250,513
e,l
Halcyon Loan Advisors Funding Ltd., 2018-1A, A2, 144A, FRN, 4.078%, (3-month USD LIBOR + 1.80%), 7/21/31
United States 5,000,000   4,887,500
e,m Harbor Park CLO Ltd.,        
 
1A, A2, 144A, FRN, 3.678%, 1/20/31
United States      1,710,526       1,697,372
 
1A, B1, 144A, FRN, 3.978%, 1/20/31
United States        466,667         463,876
e,l
HayFin Kingsland IX Ltd., 2013-6A, BR, 144A, FRN, 4.056%, (3-month USD LIBOR + 1.80%), 4/28/31
United States 5,200,000   5,122,676
e,m HPS Loan Management Ltd.,        
 
2013A-18, A2, 144A, FRN, 3.753%, 10/15/30
United States      1,400,000       1,388,016
 
2013A-18, C, 144A, FRN, 4.453%, 10/15/30
United States        500,000         491,265
  |  43
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
e Invitation Homes Trust,        
 
l 2017-SFR2, A, 144A, FRN, 3.164%, (1-month USD LIBOR + 0.85%), 12/17/36
United States     13,440,048      $13,432,165
 
l 2018-SFR3, A, 144A, FRN, 3.314%, (1-month USD LIBOR + 1.00%), 7/17/37
United States     11,161,133      11,192,230
 
m 2018-SFR4, A, 144A, FRN, 3.414%, 1/17/38
United States      9,215,509       9,296,786
m
JP Morgan Mortgage Trust, 2004-A1, 5A1, FRN, 4.908%, 2/25/34
United States         37,734          39,662
e,l LCM 26 Ltd.,        
 
26A, B, 144A, FRN, 3.678%, (3-month USD LIBOR + 1.40%), 1/20/31
United States      4,500,000       4,401,495
 
26A, C, 144A, FRN, 4.078%, (3-month USD LIBOR + 1.80%), 1/20/31
United States      2,000,000       1,931,920
e,m
LCM XV LP, 2015-A, AR, 144A, FRN, 3.518%, 7/20/30
United States 1,250,000   1,250,437
e,m LCM XVI LP,        
 
2016A, A2R, 144A, FRN, 3.483%, 10/15/31
United States      1,083,333       1,080,029
 
2016A, BR2, 144A, FRN, 4.053%, 10/15/31
United States      1,756,602       1,750,542
e,m
LCM XXII Ltd., 22A, A2R, 144A, FRN, 3.728%, 10/20/28
United States 5,000,000   4,915,300
e,l
LCM XXIII Ltd., 23A, A2, 144A, FRN, 4.128%, (3-month USD LIBOR + 1.85%), 10/20/29
United States 1,000,000   1,000,370
e,l
LCM XXV Ltd., 25A, A, 144A, FRN, 3.488%, (3-month USD LIBOR + 1.21%), 7/20/30
United States 274,000   273,795
l
Lehman XS Trust, 2005-4, 1A4, FRN, 2.826%, (1-month USD LIBOR + 0.56%), 10/25/35
United States 418,672   415,165
e,l Long Point Park CLO Ltd.,        
 
2017-1A, A2, 144A, FRN, 3.678%, (3-month USD LIBOR + 1.375%), 1/17/30
United States      2,400,000       2,348,232
 
2017-1A, B, 144A, FRN, 4.003%, (3-month USD LIBOR + 1.70%), 1/17/30
United States      1,000,000         957,900
e,m
Mach One ULC, 2004-1A, M, 144A, FRN, 5.45%, 5/28/40
United States 222,111   220,831
e,m
Madison Park Euro Funding XIV DAC, 2014A, A1N, 144A, FRN, 1.12%, 7/15/32
Ireland 4,200,000 EUR 4,660,187
e,l
Madison Park Funding Ltd., 2018-28A, B, 144A, FRN, 3.903%, (3-month USD LIBOR + 1.60%), 7/15/30
United States 2,000,000   1,986,080
e,l
Madison Park Funding XI Ltd., 2013-11, CR, 144A, FRN, 4.459%, (3-month USD LIBOR + 2.20%), 7/23/29
United States 1,910,000   1,893,689
e,m Madison Park Funding XIV Ltd.,        
 
2014-14A, BRR, 144A, FRN, 3.978%, 10/22/30
United States      1,000,000         994,400
 
2014-14A, CRR, 144A, FRN, 4.478%, 10/22/30
United States        375,000         369,525
e,l Madison Park Funding XXIII Ltd.,        
 
2017-23A, B, 144A, FRN, 3.956%, (3-month USD LIBOR + 1.70%), 7/27/30
United States      4,000,000       3,993,120
 
2017-23A, C, 144A, FRN, 4.606%, (3-month USD LIBOR + 2.35%), 7/27/30
United States      1,300,000       1,297,673
e,m Madison Park Funding XXIX Ltd.,        
 
2018-29A, A2, 144A, FRN, 3.75%, 10/18/30
United States      7,945,455       7,873,866
 
2018-29A, B, 144A, FRN, 4.05%, 10/18/30
United States      4,000,000       3,992,160
 
2018-29A, C, 144A, FRN, 4.50%, 10/18/30
United States        995,968         983,688
 
2018-29A, D, 144A, FRN, 5.30%, 10/18/30
United States        800,000         774,784
  |  44
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
e,l
Madison Park Funding XXVI Ltd., 2017-26A, AR, 144A, FRN, 3.456%, (3-month USD LIBOR + 1.20%), 7/29/30
United States      4,400,000       $4,403,124
e,l
Madison Park Funding XXVII Ltd., 2018-27A, A1B, 144A, FRN, 3.408%, (3-month USD LIBOR + 1.13%), 4/20/30
United States      3,061,000       3,017,258
e,l
Madison Park Funding XXVIII Ltd., 2018-28A, D, 144A, FRN, 5.003%, (3-month USD LIBOR + 2.70%), 7/15/30
United States        500,000         475,765
e,m Madison Park Funding XXXI Ltd.,        
 
2018-31A, A2A, 144A, FRN, 3.759%, 1/23/31
United States      2,250,000       2,234,250
 
2018-31A, B, 144A, FRN, 3.959%, 1/23/31
United States      3,000,000       2,995,350
 
2018-31A, C, 144A, FRN, 4.409%, 1/23/31
United States        650,000         637,903
e,m
Magnetite Ltd., 2015-14RA, A1, 144A, FRN, 3.42%, 10/18/31
United States 11,000,000   10,949,840
  MASTR Alternative Loan Trust,        
 
2003-1, 3A1, 5.00%, 6/25/23
United States         13,308          13,976
 
2003-6, 2A1, 5.00%, 8/25/20
United States         23,768          23,769
 
m 2004-11, 2A1, FRN, 5.496%, 11/25/19
United States          2,326           2,326
l
Merrill Lynch Mortgage Investors Trust, 2005-A10, A, FRN, 2.476%, (1-month USD LIBOR + 0.21%), 2/25/36
United States 2,009,183   1,963,904
l
Merrill Lynch Mortgage Investors Trust Inc., 2003-E, A1, FRN, 2.886%, (1-month USD LIBOR + 0.62%), 10/25/28
United States 501,713   505,609
e,m Mill City Mortgage Loan Trust,        
 
2016-1, A, 144A, FRN, 2.50%, 4/25/57
United States      6,519,408       6,507,290
 
2017-3, A1, 144A, FRN, 2.75%, 1/25/61
United States      7,113,263       7,148,693
 
2018-1, A1, 144A, FRN, 3.25%, 5/25/62
United States     13,260,478      13,460,314
 
2018-2, A1, 144A, FRN, 3.50%, 5/25/58
United States      4,625,145       4,715,919
 
2018-4, A1B, 144A, FRN, 3.50%, 4/25/66
United States      9,680,000       9,923,194
e,m
Morgan Stanley Capital I Trust, 2011-C1, A4, 144A, FRN, 5.033%, 9/15/47
United States 3,515,125   3,580,849
e,m
Mountain View Funding CLO XIV Ltd., 2019-1A, A1, 144A, FRN, 4.058%, 4/15/29
United States 4,500,000   4,507,020
e,m Neuberger Berman CLO Ltd.,        
 
2016-22A, A2R, 144A, FRN, 3.703%, 10/17/30
United States      1,400,000       1,388,618
 
2016-22A, BR, 144A, FRN, 3.953%, 10/17/30
United States        900,000         892,125
e,m Neuberger Berman CLO XVIII Ltd.,        
 
2014-18A, A1BR, 144A, FRN, 3.678%, 10/21/30
United States      2,295,000       2,262,044
 
2014-18A, BR2, 144A, FRN, 4.428%, 10/21/30
United States        250,000         244,688
e,l Neuberger Berman CLO XVI-S Ltd.,        
 
2017-16SA, B, 144A, FRN, 3.553%, (3-month USD LIBOR + 1.25%), 1/15/28
United States        400,000         392,332
 
2017-16SA, C, 144A, FRN, 3.903%, (3-month USD LIBOR + 1.60%), 1/15/28
United States        400,000         388,156
e Neuberger Berman Loan Advisers CLO Ltd.,        
 
l 2017-26A, B, 144A, FRN, 3.80%, (3-month USD LIBOR + 1.50%), 10/18/30
United States      1,078,945       1,065,717
 
l 2018-27A, C, 144A, FRN, 4.003%, (3-month USD LIBOR + 1.70%), 1/15/30
United States        500,000         480,015
 
m 2019-32A, B, 144A, FRN, 4.153%, 1/19/32
United States      4,800,000       4,800,528
 
m 2019-32A, C, 144A, FRN, 4.953%, 1/19/32
United States      6,000,000       5,998,320
  |  45
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
l
New York Mortgage Trust, 2005-3, M1, FRN, 2.941%, (1-month USD LIBOR + 0.675%), 2/25/36
United States        199,736         $187,760
e,l
Newark BSL CLO 2 Ltd., 2017-1A, B, 144A, FRN, 4.626%, (3-month USD LIBOR + 2.35%), 7/25/30
United States        583,989         584,193
e,l
NZCG Funding Ltd., 2015-1A, A2R, 144A, FRN, 4.071%, (3-month USD LIBOR + 1.55%), 2/26/31
United States      6,600,000       6,502,650
e
OBP Depositor LLC Trust, 2010-OBP, A, 144A, 4.646%, 7/15/45
United States      5,834,000       5,884,434
e,l
OBX Trust, 2018-1, A2, 144A, FRN, 2.916%, (1-month USD LIBOR + 0.65%), 6/25/57
United States      3,255,898       3,246,542
e Octagon Investment Partners 18-R Ltd.,        
 
m 2018-18A, A1A, 144A, FRN, 3.282%, 4/16/31
United States      1,000,000         989,710
 
l 2018-18A, C, 144A, FRN, 5.022%, (3-month USD LIBOR + 2.70%), 4/16/31
United States      1,000,000         939,280
e,l Octagon Investment Partners 26 Ltd.,        
 
2016-1A, A2R, 144A, FRN, 3.653%, (3-month USD LIBOR + 1.35%), 7/15/30
United States      1,600,000       1,573,168
 
2016-1A, BR, 144A, FRN, 3.903%, (3-month USD LIBOR + 1.60%), 7/15/30
United States      2,000,000       1,977,560
e,m Octagon Investment Partners 28 Ltd.,        
 
2016-1A, A2R, 144A, FRN, 3.733%, 10/24/30
United States      4,000,000       3,952,600
 
2016-1A, BR, 144A, FRN, 4.083%, 10/24/30
United States      1,186,282       1,187,136
e,l
Octagon Investment Partners 31 LLC, 2017-1A, C, 144A, FRN, 4.678%, (3-month USD LIBOR + 2.40%), 7/20/30
United States 280,761   280,688
e,l
Octagon Investment Partners 35 Ltd., 2018-1A, A1B, 144A, FRN, 3.378%, (3-month USD LIBOR + 1.10%), 1/20/31
United States 2,000,000   1,954,600
e,l
Octagon Investment Partners 37 Ltd., 2018-2A, A2, 144A, FRN, 3.856%, (3-month USD LIBOR + 1.58%), 7/25/30
United States 1,000,000   990,870
e,l
Octagon Investment Partners XVI Ltd., 2013-1A, BR, 144A, FRN, 3.903%, (3-month USD LIBOR + 1.60%), 7/17/30
United States 4,000,000   3,955,400
e,l Octagon Investment Partners XXIII Ltd.,        
 
2015-1A, CR, 144A, FRN, 4.153%, (3-month USD LIBOR + 1.85%), 7/15/27
United States        250,000         247,938
 
2015-1A, DR, 144A, FRN, 4.853%, (3-month USD LIBOR + 2.55%), 7/15/27
United States        300,000         297,177
e,m
Octagon Loan Funding Ltd., 2014-1A, ARR, 144A, FRN, 3.70%, 11/18/31
United States 3,300,000   3,290,496
e Progress Residential Trust,        
 
2015-SFR2, A, 144A, 2.74%, 6/12/32
United States        860,454         858,779
 
2017-SFR1, A, 144A, 2.768%, 8/17/34
United States        408,504         408,805
 
2018-SFR2, A, 144A, 3.712%, 8/17/35
United States      2,967,000       3,035,368
l
RAAC, 2004-SP1, AII, FRN, 2.966%, (1-month USD LIBOR + 0.70%), 3/25/34
United States 315,167   311,986
e,m
Race Point X CLO Ltd., 2016-10A, B1R, 144A, FRN, 3.926%, 7/25/31
United States 700,000   693,231
e,l
Radnor RE Ltd., 2018-1, M1, 144A, FRN, 3.666%, (1-month USD LIBOR + 1.40%), 3/25/28
United States 4,897,502   4,910,682
e,m
Sequoia Mortgage Trust, 2016-2, A4, 144A, FRN, 3.50%, 8/25/46
United States 13,432,099   13,699,009
  |  46
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
e,p,q Sound Point Euro CLO II Funding DAC,        
 
2A, A, 144A, FRN, 10/26/32
Ireland      8,200,000 EUR     $9,073,300
 
2A, B1, 144A, FRN, 10/26/32
Ireland      4,300,000 EUR     4,757,950
m
Structured ARM Loan Trust, 2004-12, 3A1, FRN, 4.547%, 9/25/34
United States      1,446,187       1,476,139
l
Structured Asset Mortgage Investments II Trust, 2004-AR6, A1A, FRN, 2.998%, (1-month USD LIBOR + 0.70%), 2/19/35
United States      1,182,724       1,155,064
e,l
TCI-Flatiron CLO Ltd., 2017-1A, C, 144A, FRN, 4.375%, (3-month USD LIBOR + 1.85%), 11/18/30
United States        500,000         482,285
  Thornburg Mortgage Securities Trust,        
 
l 2004-3, A, FRN, 3.006%, (1-month USD LIBOR + 0.74%), 9/25/44
United States        732,838         734,159
 
m 2005-1, A3, FRN, 4.61%, 4/25/45
United States        186,011         187,097
e Towd Point Mortgage Trust,        
 
m 2015-1, 144A, FRN, 2.75%, 11/25/60
United States        529,431         530,372
 
2015-1, AE, 144A, 3.00%, 10/25/53
United States      3,657,908       3,684,988
 
m 2015-2, 2A1, 144A, FRN, 3.75%, 11/25/57
United States        611,019         616,702
 
m 2015-3, A1A, 144A, FRN, 3.50%, 3/25/54
United States      2,265,175       2,281,044
 
m 2015-3, A1B, 144A, FRN, 3.00%, 3/25/54
United States      1,046,024       1,048,542
 
m 2016-1, A1, 144A, FRN, 3.50%, 2/25/55
United States      8,413,133       8,506,381
 
m 2016-2, A1A, 144A, FRN, 2.75%, 8/25/55
United States        853,795         856,794
 
m 2016-3, A1, 144A, FRN, 2.25%, 4/25/56
United States      8,915,539       8,894,316
 
m 2016-4, A1, 144A, FRN, 2.25%, 7/25/56
United States     13,081,214      12,990,114
 
m 2016-5, A1, 144A, FRN, 2.50%, 10/25/56
United States      4,154,870       4,142,480
 
m 2017-1, A1, 144A, FRN, 2.75%, 10/25/56
United States     12,345,814      12,425,997
 
m 2017-2, A1, 144A, FRN, 2.75%, 4/25/57
United States     12,396,031      12,441,056
 
m 2017-4, A1, 144A, FRN, 2.75%, 6/25/57
United States     13,100,545      13,136,423
 
l 2017-5, A1, 144A, FRN, 2.866%, (1-month USD LIBOR + 0.60%), 2/25/57
United States      3,014,899       3,012,623
 
m 2018-1, A1, 144A, FRN, 3.00%, 1/25/58
United States      3,015,925       3,037,589
 
m 2018-2, A1, 144A, FRN, 3.25%, 3/25/58
United States      7,059,341       7,163,452
 
m 2018-3, A1, 144A, FRN, 3.75%, 5/25/58
United States     14,831,546      15,394,072
 
m 2018-4, A1, 144A, FRN, 3.00%, 6/25/58
United States     17,581,661      17,743,992
 
m 2018-5, A1A, 144A, FRN, 3.25%, 7/25/58
United States      4,009,720       4,066,583
 
m 2018-6, A1A, 144A, FRN, 3.75%, 3/25/58
United States      7,271,505       7,483,838
 
m 2019-1, A1, 144A, FRN, 3.75%, 3/25/58
United States     13,926,496      14,496,084
e,m
Upgrade Master Pass-Thru Trust, 2019-PT1, A, 144A, FRN, 12.101%, 6/15/25
United States 1,225,089   1,232,891
e Voya CLO Ltd.,        
 
l 2012-4A, A2R, 144A, FRN, 4.153%, (3-month USD LIBOR + 1.85%), 10/15/28
United States      7,660,000       7,692,095
 
l 2013-2A, A1R, 144A, FRN, 3.246%, (3-month USD LIBOR + 0.97%), 4/25/31
United States      4,500,000       4,445,505
 
l 2013-2A, CR, 144A, FRN, 5.026%, (3-month USD LIBOR + 2.75%), 4/25/31
United States        375,000         353,415
 
l 2014-1A, CR2, 144A, FRN, 5.10%, (3-month USD LIBOR + 2.80%), 4/18/31
United States        600,000         570,018
 
m 2016-3A, A1R, 144A, FRN, 3.49%, 10/18/31
United States      1,800,000       1,796,904
  |  47
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
e Voya CLO Ltd., (continued)        
 
m 2016-3A, A2R, 144A, FRN, 3.70%, 10/18/31
United States        818,182         $808,577
 
m 2016-3A, CR, 144A, FRN, 5.55%, 10/18/31
United States      1,698,113       1,651,466
 
l 2017-3A, B, 144A, FRN, 4.628%, (3-month USD LIBOR + 2.35%), 7/20/30
United States        507,690         504,563
 
l 2018-2A, A2, 144A, FRN, 3.553%, (3-month USD LIBOR + 1.25%), 7/15/31
United States      2,500,000       2,453,675
 
l 2018-2A, D, 144A, FRN, 5.053%, (3-month USD LIBOR + 2.75%), 7/15/31
United States        300,000         285,762
 
m 2018-4A, B, 144A, FRN, 4.153%, 1/15/32
United States        948,052         949,777
l WaMu Mortgage Pass-Through Certificates,        
 
2005-AR19, A1A1, FRN, 2.536%, (1-month USD LIBOR + 0.27%), 12/25/45
United States      2,169,311       2,196,388
 
2005-AR8, 1A1A, FRN, 2.846%, (1-month USD LIBOR + 0.58%), 7/25/45
United States        843,998         840,028
e,l
Webster Park CLO Ltd., 2015-1A, A2R, 144A, FRN, 3.878%, (3-month USD LIBOR + 1.60%), 7/20/30
United States 1,750,000   1,733,165
 
Wells Fargo Commercial Mortgage Trust, 2016-NXS6, A2, 2.399%, 11/15/49
United States 6,534,000   6,533,169
e,m
Wells Fargo Mortgage Backed Securities, 2018-1, A3, 144A, FRN, 3.50%, 7/25/47
United States 5,653,032   5,769,815
m Wells Fargo Mortgage Backed Securities Trust,        
 
2004-W, A9, FRN, 4.863%, 11/25/34
United States         60,433          63,015
 
2005-AR10, 2A3, FRN, 4.969%, 6/25/35
United States        347,091         355,549
e,l West CLO Ltd.,        
 
2014-1A, A2R, 144A, FRN, 3.65%, (3-month USD LIBOR + 1.35%), 7/18/26
United States      1,360,000       1,356,369
 
2014-1A, BR, 144A, FRN, 4.15%, (3-month USD LIBOR + 1.85%), 7/18/26
United States      2,410,000       2,398,504
          1,321,254,498
 
Total Asset-Backed Securities and Commercial Mortgage-Backed Securities (Cost $1,335,680,908)
      1,325,148,962
  Mortgage-Backed Securities 0.6%        
r Federal Home Loan Mortgage Corp. (FHLMC) Adjustable Rate 0.0%†        
 
FHLMC, 4.745% - 4.917%, (12-month USD LIBOR +/- MBS Margin), 10/01/36 - 6/01/37
United States 1,539,801   1,629,499
  Federal Home Loan Mortgage Corp. (FHLMC) Fixed Rate 0.0%†        
 
FHLMC Gold 15 Year, 5.00%, 10/01/23
United States 80,268   82,478
 
FHLMC Gold 15 Year, 6.00%, 6/01/23
United States 10,910   11,151
 
FHLMC Gold 30 Year, 5.00%, 1/01/39
United States 109,435   119,395
          213,024
  |  48
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Mortgage-Backed Securities (continued)        
r Federal National Mortgage Association (FNMA) Adjustable Rate 0.5%        
 
FNMA, 3.475% - 3.668%, (1-month USD LIBOR +/- MBS Margin), 4/01/28 - 7/01/34
United States        264,608         $271,924
 
FNMA, 4.25%, (Federal COF +/- MBS Margin), 8/01/29
United States          3,413           3,461
 
FNMA, 2.884% - 4.461%, (US 3 Year CMT T-Note +/- MBS Margin), 3/01/21 - 6/01/34
United States         60,718          61,895
 
FNMA, 4.733%, (US 5 Year CMT T-Note +/- MBS Margin), 2/01/30
United States         57,565          61,292
 
FNMA, 4.007% - 5.065%, (12-month USD LIBOR +/- MBS Margin), 11/01/32 - 2/01/44
United States     10,018,523      10,514,809
 
FNMA, 5.125%, (6-month US T-Bill +/- MBS Margin), 8/01/32
United States         89,341          91,341
 
FNMA, 3.71% - 5.165%, (US 1 Year CMT T-Note +/- MBS Margin), 2/01/21 - 10/01/44
United States 2,339,209   2,410,800
 
FNMA, 2.208% - 5.625%, (11th District COF +/- MBS Margin), 10/01/19 - 12/01/36
United States 111,833   113,789
 
FNMA, 3.55% - 5.808%, (6-month USD LIBOR +/- MBS Margin), 9/01/22 - 8/01/37
United States 1,063,424   1,089,624
          14,618,935
  Federal National Mortgage Association (FNMA) Fixed Rate 0.1%        
 
FNMA 15 Year, 3.50%, 10/01/25
United States 703,117   726,424
 
FNMA 15 Year, 4.00%, 12/01/25
United States 1,040,688   1,083,664
 
FNMA 15 Year, 4.50%, 5/01/23 - 6/01/25
United States 749,638   779,880
 
FNMA 30 Year, 5.00%, 3/01/38
United States 22,385   24,352
          2,614,320
r Government National Mortgage Association (GNMA) Adjustable Rate 0.0%†        
 
GNMA, 3.75% - 3.875%, (US 1 Year CMT T-Note +/- MBS Margin), 4/20/26 - 9/20/26
United States 15,592   15,920
 
Total Mortgage-Backed Securities (Cost $19,114,181)
      19,091,698
  Municipal Bonds 0.7%        
 
Industry Public Facilities Authority Tax Allocation Revenue, Transportation District, Industrial Redevelopment Project No. 2, Refunding, Series B, AGMC Insured, 3.389%, 1/01/20
United States 5,900,000   5,920,945
 
Pennsylvania State GO, Refunding, Second Series, 5.00%, 1/15/20
United States 6,500,000   6,616,220
  San Jose RDA Successor Agency Tax Allocation,        
 
Senior, Refunding, Series A-T, 2.48%, 8/01/21
United States      1,595,000       1,604,299
 
Senior, Refunding, Series A-T, 2.63%, 8/01/22
United States      5,320,000       5,387,298
 
Texas State GO, Transportation Commission Highway Improvement, Series A, 5.00%, 4/01/21
United States 2,685,000   2,858,988
 
Total Municipal Bonds (Cost $22,256,674)
      22,387,750
  |  49
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
    Country Shares/Units   Value
  Escrows and Litigation Trusts 0.0%        
a,b
NewPage Corp., Escrow Account
United States        500,000              $ —
a,b,c
Remington Outdoor Co. Inc., Litigation Units
United States         16,078               —
a,b
T-Mobile USA Inc., Escrow Account
United States      1,800,000               —
 
Total Escrows and Litigation Trusts (Cost $—)
      —
 
Total Investments before Short Term Investments (Cost $3,151,817,128)
      3,137,927,496
      Principal
Amount* 		   
  Short Term Investments 2.9%        
  Corporate Bonds (Cost $2,037,861) 0.1%        
  Telecommunication Services 0.1%        
e
Sprint Communications Inc., senior note, 144A, , 7.00%, , 3/01/20
United States 2,000,000   2,047,500
 
Total Investments before Money Market Funds

(Cost $3,153,854,989)
      3,139,974,996
      Shares    
  Money Market Funds (Cost $90,098,231) 2.8%        
d,s
Institutional Fiduciary Trust Money Market Portfolio, 2.00%
United States 90,098,231   90,098,231
 
Total Investments (Cost $3,243,953,220) 100.8%
      3,230,073,227
 
Other Assets, less Liabilities (0.8)%
      (24,111,074)
 
Net Assets 100.0%
      $3,205,962,153
  |  50
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
†Rounds to less than 0.1% of net assets.
*The principal amount is stated in U.S. dollars unless otherwise indicated.
aNon-income producing.
bFair valued using significant unobservable inputs. See Note 10 regarding fair value measurements.
cSee Note 5 regarding restricted securities.
dSee  Note 7 regarding investments in affiliated management investment companies.
eSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At July 31, 2019, the aggregate value of these securities was $989,550,089, representing 30.9% of net assets.
fSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At July 31, 2019, the aggregate value of these securities was $73,074,645, representing 2.3% of net assets.
gThe coupon rate shown represents the rate at period end.
hIncome may be received in additional securities and/or cash.
iPrincipal amount is stated in 1,000 Brazilian Real Units.
jA portion or all of the security purchased on a delayed delivery basis.  
kPrincipal amount of security is adjusted for inflation.  
lThe coupon rate shown represents the rate inclusive of any caps or floors, if applicable, in effect at period end.
mAdjustable rate security with an interest rate that is not based on a published reference index and spread. The rate is based on the structure of the agreement and current market conditions. The coupon rate shown represents the rate at period end.
nThe bond pays interest and/or principal based upon the issuer’s ability to pay, which may be less than the stated interest rate or principal paydown.
oInvestment in an interest-only security entitles holders to receive only the interest payment on the underlying instruments. The principal amount shown is the notional amount of the underlying instruments.
pSecurity purchased on a when-issued basis.  
qThe coupon rate will be determined at time of issue.
rAdjustable Rate Mortgage-Backed Security (ARM); the rate shown is the effective rate at period end. ARM rates are not based on a published reference rate and spread, but instead pass-through weighted average interest income inclusive of any caps or floors, if applicable, from the underlying mortgage loans in which the majority of mortgages pay interest based on the index shown at their designated reset dates plus a spread, less the applicable servicing and guaranty fee (MBS margin).
sThe rate shown is the annualized seven-day effective yield at period end.
At July 31, 2019, the Fund had the following futures contracts outstanding. See  Note 3.
Futures Contracts
Description Type Number of Contracts Notional
Amount* 		Expiration
Date 		Value/Unrealized
Appreciation
(Depreciation)
Interest Rate Contracts          
30 Day Federal Funds
Short 780 $319,045,522 12/31/19 $440,340
Australian 3 Yr. Bond
Long 725 57,221,591 9/16/19 242,149
Australian 10 Yr. Bond
Long 200 19,856,167 9/16/19 230,453
Canadian 10 Yr. Bond
Long 175 18,870,430 9/19/19 125,838
CME Ultra Long Term U.S. Treasury Bond
Short 5 887,812 9/19/19 (7,664)
U.S. Treasury 2 Yr. Note
Long 3,746 803,165,812 9/30/19 81,597
U.S. Treasury 5 Yr. Note
Short 370 43,495,234 9/30/19 (75,128)
U.S. Treasury 10 Yr. Note
Short 219 27,905,391 9/19/19 (109,800)
U.S. Treasury 30 Yr. Bond
Short 150 23,339,062 9/19/19 (251,776)
Ultra 10 Yr. U.S. Treasury Note
Short 137 18,884,594 9/19/19 (143,307)
Total Futures Contracts
$532,702
 
*As of period end.
 
  |  51
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
At July 31, 2019, the Fund had the following forward exchange contracts outstanding. See  Note 3.
Forward Exchange Contracts
Currency Counterpartya Type Quantity Contract Amount   Settlement
Date 		Unrealized
Appreciation 		Unrealized
Depreciation
OTC Forward Exchange Contracts
Mexican Peso 
JPHQ Buy 109,400,000 $5,571,967   8/08/19   $130,775       $ —
Mexican Peso 
JPHQ Sell 60,750,000 3,145,501   8/08/19         —   (21,241)
Canadian Dollar 
JPHQ Sell 3,300,000 2,467,991   9/18/19         —   (34,872)
Euro 
BZWS Sell 194,860 222,643   9/18/19     6,151        —
Euro 
CITI Sell 391,262 446,880   9/18/19    12,183        —
Euro 
DBAB Sell 3,367,136 3,844,326   9/18/19   103,399        —
Euro 
GSCO Sell 420,000 479,661   9/18/19    13,036        —
Euro 
JPHQ Sell 16,683,130 18,866,047   9/18/19   330,890        —
Norwegian Krone 
JPHQ Buy 83,000,000 9,537,883   9/18/19         — (161,304)
Polish Zloty 
JPHQ Buy 7,680,000 2,020,505   9/18/19         —   (37,619)
Polish Zloty 
JPHQ Sell 7,680,000 2,038,595   9/18/19    55,710        —
Swedish Krona 
JPHQ Buy 17,720,000 1,905,039   9/18/19         —   (64,572)
Swedish Krona 
JPHQ Sell 77,520,000 8,245,600   9/18/19   194,078        —
Chinese Yuan Renminbi 
JPHQ Buy 12,200,000 1,817,832   9/27/19         —   (53,223)
Chinese Yuan Renminbi 
JPHQ Sell 24,450,000 3,639,259   9/27/19   102,808        —
Chinese Yuan Renminbi 
JPHQ Sell 42,700,000 6,176,054   9/27/19         —      (80)
South Korean Won 
JPHQ Sell 2,920,000,000 2,580,417   9/27/19   119,363        —
Brazilian Real 
JPHQ Sell 950,000 251,024   10/10/19     3,348        —
Australian Dollar 
JPHQ Sell 11,520,000 8,029,681   10/11/19   134,542        —
Brazilian Real 
JPHQ Buy 380,000 96,877   10/11/19     2,185        —
Brazilian Real 
JPHQ Sell 380,000 95,214   10/11/19         —    (3,848)
Turkish Lira 
JPHQ Buy 9,910,000 1,524,498   10/18/19   196,945        —
Indonesian Rupiah 
JPHQ Buy 31,065,000,000 2,120,912   12/16/19    38,069        —
Japanese Yen 
JPHQ Buy 342,000,000 3,199,177   1/29/20         —   (10,307)
Canadian Dollar 
JPHQ Sell 43,606,003 33,187,715   1/30/20    52,753        —
Euro 
JPHQ Sell 47,777,702 54,046,609   1/30/20   365,350        —
Total Forward Exchange Contracts 
$1,861,585 $(387,066)
Net unrealized appreciation (depreciation) 
$1,474,519
 
aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.
 
At July 31, 2019, the Fund had the following credit default swap contracts outstanding. See  Note 3.
Credit Default Swap Contracts
Description Periodic
Payment Rate
Received (Paid) 		Payment
Frequency 		Counter-partya Maturity
Date 		Notional
Amountb 		  Value Unamortized
Upfront
Payments
(Receipts) 		Unrealized
Appreciation
(Depreciation) 		Ratingc
Centrally Cleared Swap Contracts
Contracts to Sell Protectiond,e
Traded Index
CDX.NA.HY.24
5.00% Quarterly   6/20/20 $28,536,250      $828,425    $697,510   $130,915 Non-
  Investment
Grade
  |  52
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
Credit Default Swap Contracts (continued)
Description Periodic
Payment Rate
Received (Paid) 		Payment
Frequency 		Counter-partya Maturity
Date 		Notional
Amountb 		  Value Unamortized
Upfront
Payments
(Receipts) 		Unrealized
Appreciation
(Depreciation) 		Ratingc
Centrally Cleared Swap Contracts (continued)
Contracts to Sell Protectiond,e (continued)
Traded Index (continued)
CDX.NA.HY.30
5.00% Quarterly   6/20/23  $6,926,400      $593,626    $326,867   $266,759 Non-
  Investment
Grade
CDX.NA.IG.31
1.00% Quarterly   12/20/21 74,600,000    1,732,479    970,299   762,180 Investment
  Grade
ITRX.EUR.XOVER.31
1.00% Quarterly   6/20/24  4,250,000 EUR    552,795    551,122     1,673 Investment
  Grade
Total Centrally Cleared Swap Contracts
$3,707,325 $2,545,798 $1,161,527  
OTC Swap Contracts
Contracts to Buy Protectiond
Single Name
Ally Financial Inc.
(5.00)% Quarterly JPHQ 6/20/24 $11,000,000   $(2,130,530) $(1,701,924)   $(428,606)  
American Airlines Group Inc.
(5.00)% Quarterly CITI 12/20/19  1,780,000      (43,521)    (28,497)   (15,024)  
Government of Italy
(1.00)% Quarterly BZWS 6/20/23  4,100,000       (1,107)     34,732   (35,839)  
Government of Turkey
(1.00)% Quarterly BZWS 12/20/19    900,000        1,709     16,352   (14,643)  
Nabors Industries Inc.
(1.00)% Quarterly CITI 12/20/21  5,150,000      261,108    179,457    81,651  
Navient Corp.
(5.00)% Quarterly JPHQ 3/20/20  1,150,000      (40,663)    (26,720)   (13,943)  
PHH Corp.
(5.00)% Quarterly GSCO 9/20/19  1,800,000      (22,343)        648   (22,991)  
Contracts to Sell Protectiond,e
Single Name
American Tower Corp.
1.00% Quarterly GSCO 3/20/21  6,500,000       11,475    (39,866)    51,341 BBB-
The Goldman Sachs Group Inc.
1.00% Quarterly JPHQ 6/20/24 11,000,000      222,261     73,773   148,488 BBB+
Government of Argentina
5.00% Quarterly BZWS 6/20/23  1,135,000     (139,734)     19,402   (159,136) B
Government of Argentina
5.00% Quarterly BZWS 6/20/23  2,000,000     (246,228)   (393,664)   147,436 B
Government of Argentina
5.00% Quarterly CITI 6/20/23  1,950,000     (240,072)    (39,118)   (200,954) B
Government of Argentina
5.00% Quarterly CITI 12/20/23  2,000,000     (266,547)    (99,435)   (167,112) B
Government of Indonesia
1.00% Quarterly CITI 6/20/24  5,225,000       57,562    (16,653)    74,215 BBB
Government of Italy
1.00% Quarterly BZWS 6/20/23  4,100,000      (62,051)   (152,305)    90,254 NR
Government of Russia
1.00% Quarterly BNDP 6/20/24  3,700,000        6,642    (46,923)    53,565 BBB-
Government of Spain
1.00% Quarterly CITI 6/20/24  4,400,000      127,487    114,145    13,342 NR
Morgan Stanley
1.00% Quarterly JPHQ 6/20/24 11,000,000      242,445    148,496    93,949 BBB+
Nabors Industries Inc.
1.00% Quarterly CITI 12/20/23  5,150,000     (793,997)   (677,140)   (116,857) BB
  |  53
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
Credit Default Swap Contracts (continued)
Description Periodic
Payment Rate
Received (Paid) 		Payment
Frequency 		Counter-partya Maturity
Date 		Notional
Amountb 		  Value Unamortized
Upfront
Payments
(Receipts) 		Unrealized
Appreciation
(Depreciation) 		Ratingc
OTC Swap Contracts (continued)
Contracts to Sell Protectiond,e (continued)
Traded Index
fBNP Paribas Bespoke Rodez Index, Mezzanine Tranche 5-7%
2.00% Quarterly BNDP 12/20/20  $3,600,000        $5,456         $ —     $5,456 Non-
  Investment
Grade
fBNP Paribas Bespoke Rodez2 Index, Mezzanine Tranche 5-7%
3.20% Quarterly BNDP 12/20/20  2,000,000       46,119          —    46,119 Non-
  Investment
Grade
fCitibank Bespoke Cambridge Index, Equity Tranche 0-3%
0.00% Quarterly CITI 12/20/19  2,200,500     (142,754)    (70,075)   (72,679) Non-
  Investment
Grade
fCitibank Bespoke Palma Index, Mezzanine Tranche 5-7%
2.30% Quarterly CITI 6/20/21  4,200,000       53,831          —    53,831 Non-
  Investment
Grade
fCitibank Bespoke Phoenix Index, Mezzanine Tranche 5-7%
2.90% Quarterly CITI 12/20/21  2,800,000       45,346          —    45,346 Non-
  Investment
Grade
fCitibank Bespoke Singapore Index, Equity Tranche 0-3%
0.00% Quarterly CITI 6/20/20  5,000,000     (791,375)   (621,211)   (170,164) Non-
  Investment
Grade
fCitibank Bespoke Sydney Index, Equity Tranche 0-3%
0.00% Quarterly CITI 6/20/20    798,913     (142,411)   (113,317)   (29,094) Non-
  Investment
Grade
fCitibank Bespoke Verona Index, Equity Tranche 0-3%
0.00% Quarterly CITI 12/20/19  1,711,500      (71,271)    (66,902)    (4,369) Non-
  Investment
Grade
  |  54
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
Credit Default Swap Contracts (continued)
Description Periodic
Payment Rate
Received (Paid) 		Payment
Frequency 		Counter-partya Maturity
Date 		Notional
Amountb 		  Value Unamortized
Upfront
Payments
(Receipts) 		Unrealized
Appreciation
(Depreciation) 		Ratingc
OTC Swap Contracts (continued)
Contracts to Sell Protectiond,e (continued)
Traded Index (continued)
fCitibank Bespoke Verona Index, Mezzanine Tranche 7-15%
0.40% Quarterly CITI 12/20/19  $4,000,000        $4,750         $ —     $4,750 Non-
  Investment
Grade
fMorgan Stanley Bespoke Pecan Index, Mezzanine Tranche 5-10%
3.98% Quarterly MSCO 12/20/21  2,900,000       10,536          —    10,536 Non-
  Investment
Grade
fMorgan Stanley Bespoke Pecan Index, Mezzanine Tranche 5-10%
4.10% Quarterly MSCO 12/20/21  2,900,000       55,907          —    55,907 Non-
  Investment
Grade
Total OTC Swap Contracts
$(3,981,970) $(3,506,745) $(475,225)  
Total Credit Default Swap Contracts
$(274,645) $(960,947) $686,302  
 
aPosting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of the agreement. The table below summarizes the cash and/or securities held as collateral for each applicable counterparty at period end.
 
Counterparty Collateral
Pledged
(Received)
BZWS $500,000
CITI 1,670,000
JPHQ 610,000
Total collateral $2,780,000
 
bFor contracts to sell protection, the notional amount is equal to the maximum potential amount of the future payments and no recourse provisions have been entered into in association with the contracts.
cBased on Standard and Poor’s (S&P) Rating for single name swaps and internal ratings for index swaps. Internal ratings based on mapping into equivalent ratings from external vendors.
dPerformance triggers for settlement of contract include default, bankruptcy or restructuring for single name swaps, and failure to pay or bankruptcy of the underlying securities for traded index swaps.
eThe fund enters contracts to sell protection to create a long credit position.
fRepresents acustom index comprised of a basket of underlying instruments.
 
  |  55
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
At July 31, 2019, the Fund had the following cross-currency swap contracts outstanding. See  Note 3.
Cross-Currency Swap Contracts
Description Payment
Frequency 		Counterparty Maturity
Date 		Notional
Amount 		  Value/Unrealized
Appreciation
(Depreciation)
OTC Swap Contracts
Receive Fixed 2.393%
Semi-Annual     7,916,500 USD  
Pay Fixed 0.50%
Annual JPHQ 4/09/20 7,100,000 EUR $46,885
Receive Floating 3-month USD LIBOR + 2.87%
Quarterly     1,743,000 USD  
Pay Fixed 2.50%
Annual CITI 5/04/21 1,500,000 EUR 85,800
Receive Floating 3-month USD LIBOR + 1.334%
Quarterly     4,704,000 USD  
Pay Floating 3-month EUR LIBOR + 1.12%
Quarterly CITI 7/10/21 4,200,000 EUR 57,257
Total Cross Currency Swap Contracts
$189,942
 
At July 31, 2019, the Fund had the following inflation index swap contracts outstanding. See  Note 3.
Inflation Index Swap Contracts
Description Payment
Frequency 		  Maturity
Date 		Notional
Amount 		  Value/Unrealized
Appreciaton
(Depreciation)
Centrally Cleared Swap Contracts
Receive variable change in USA-CPI-U
At maturity          
Pay Fixed 1.96%
At maturity   8/31/24 $25,200,000   $38,223
Total Inflation Index Swap Contracts
$38,223
 
At July 31, 2019, the Fund had the following total return swap contracts outstanding. See  Note 3.
Total Return Swap Contracts
Underlying Instruments Financing Rate Payment
Frequency 		Counterparty Maturity
Date 		Notional
Value* 		  Value/Unrealized
Appreciation
(Depreciation)
OTC Swap Contracts
Longa
Euribor 3 Month
3-month EUR LIBOR Quarterly JPHQ 12/20/19 8,500,000 EUR    $43,837
Markit iboxx USD Liquid Leveraged Loan Index
3-month USD LIBOR Quarterly CITI 9/20/19 5,050,000     105,548
Markit iBoxx USD Liquid Leveraged Loan Index
3-month USD LIBOR Quarterly CITI 9/20/19 7,000,000     190,500
Markit iBoxx USD Liquid Leveraged Loan Index
3-month USD LIBOR Quarterly GSCO 9/20/19 4,300,000      89,873
Markit iBoxx USD Liquid Leveraged Loan Index
3-month USD LIBOR Quarterly GSCO 9/20/19 8,600,000     133,733
Markit iBoxx USD Liquid Leveraged Loan Index
3-month USD LIBOR Quarterly JPHQ 9/20/19 6,000,000     426,355
Markit iBoxx USD Liquid Leveraged Loan Index
3-month USD LIBOR Quarterly JPHQ 12/20/19 1,300,000      14,437
Markit iBoxx USD Liquid Leveraged Loan Index
3-month USD LIBOR Quarterly MSCO 12/20/19 1,700,000      29,678
Markit iBoxx USD Liquid Leveraged Loan Index
3-month USD LIBOR Quarterly FBCO 3/20/20 1,600,000      23,803
  |  56
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Low Duration Total Return Fund (continued)
Total Return Swap Contracts (continued)
Underlying Instruments Financing Rate Payment
Frequency 		Counterparty Maturity
Date 		Notional
Value* 		  Value/Unrealized
Appreciation
(Depreciation)
OTC Swap Contracts (continued)
Longa (continued)
Markit iBoxx USD Liquid Leveraged Loan Index
3-month USD LIBOR Quarterly GSCO 3/20/20 2,600,000      $49,099
Total Total Return Swap Contracts
$1,106,863
 
*In U.S. dollars unless otherwise indicated.
aThe Fund receives the total return on the underlying instrument and pays a variable financing rate.
See Abbreviations on page 114.
  |  57
Franklin Investors Securities Trust
Statement of Investments, July 31, 2019 (unaudited)
Franklin Managed Income Fund
    Country Shares   Value
  Common Stocks 36.5%        
  Communication Services 2.7%        
 
AT&T Inc.
United States   1,000,000      $34,050,000
 
Verizon Communications Inc.
United States     850,000      46,979,500
 
Vodafone Group PLC
United Kingdom  10,000,000      18,232,469
          99,261,969
  Consumer Discretionary 1.5%        
 
Daimler AG
Germany     500,000      25,944,658
 
Ford Motor Co.
United States 3,000,000   28,590,000
          54,534,658
  Consumer Staples 3.7%        
 
The Coca-Cola Co.
United States 650,200   34,220,026
 
Nestle SA
Switzerland 500,000   52,470,000
 
PepsiCo Inc.
United States 187,200   23,926,032
 
Philip Morris International Inc.
United States 300,000   25,083,000
          135,699,058
  Energy 4.0%        
a
Chevron Corp.
United States 400,000   49,244,000
 
Exxon Mobil Corp.
United States 550,000   40,898,000
 
Occidental Petroleum Corp.
United States 450,000   23,112,000
 
Royal Dutch Shell PLC, A, ADR
United Kingdom 545,000   34,275,050
          147,529,050
  Financials 5.9%        
 
Bank of America Corp.
United States 1,496,715   45,919,216
 
Barclays PLC
United Kingdom 5,000,000   9,359,204
 
JPMorgan Chase & Co.
United States 500,000   58,000,000
 
Morgan Stanley
United States 625,000   27,850,000
 
The Toronto-Dominion Bank
Canada 415,000   24,252,600
 
Wells Fargo & Co.
United States 1,100,000   53,251,000
          218,632,020
  Health Care 6.3%        
 
AbbVie Inc.
United States 500,000   33,310,000
 
AstraZeneca PLC, ADR
United Kingdom 1,100,000   47,751,000
 
Bristol-Myers Squibb Co.
United States 1,000,000   44,410,000
 
CVS Health Corp.
United States 700,000   39,109,000
 
Johnson & Johnson
United States 200,000   26,044,000
 
Pfizer Inc.
United States 1,150,000   44,666,000
          235,290,000
  Industrials 5.6%        
 
3M Co.
United States 200,000   34,944,000
 
FedEx Corp.
United States 200,000   34,106,000
 
General Dynamics Corp.
United States 150,000   27,891,000
a
General Electric Co.
United States 2,438,104   25,478,187
 
Northrop Grumman Corp.
United States 105,000   36,284,850
 
Raytheon Co.
United States 260,000   47,395,400
          206,099,437
Quarterly Statement of Investments  |  See Notes to Statements of Investments.  |  58
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Managed Income Fund (continued)
    Country Shares   Value
  Common Stocks (continued)        
  Information Technology 3.9%        
a
Analog Devices Inc.
United States     350,000      $41,111,000
 
Intel Corp.
United States     685,000      34,626,750
 
International Business Machines Corp.
United States     124,972      18,525,849
 
NVIDIA Corp.
United States     165,000      27,838,800
 
Texas Instruments Inc.
United States     197,000      24,626,970
          146,729,369
  Materials 0.9%        
 
BASF SE
Germany 400,000   26,790,577
 
Dow Inc.
United States 183,333   8,880,650
          35,671,227
  Real Estate 0.7%        
 
Host Hotels & Resorts Inc.
United States 1,500,000   26,085,000
  Utilities 1.3%        
 
Dominion Energy Inc.
United States 528,200   39,239,978
 
Sempra Energy
United States 59,000   7,990,370
          47,230,348
 
Total Common Stocks (Cost $1,131,050,714)
      1,352,762,136
  Equity-Linked Securities 11.2%        
  Communication Services 2.0%        
b
Goldman Sachs International into Alphabet Inc., 7.00%, A, 144A
United States 15,000   17,532,758
b
Royal Bank of Canada into Comcast Corp., 7.50%, A, 144A
United States 1,485,000   57,648,851
          75,181,609
  Consumer Discretionary 1.0%        
b
Citigroup Global Markets Holdings Inc. into Amazon.com Inc., 9.00%, 144A
United States 20,000   37,565,836
  Financials 0.9%        
b
Barclays Bank PLC into The Charles Schwab Corp., 6.00%, 144A
United States 755,000   33,317,421
  Information Technology 7.3%        
b
Barclays Bank PLC into Broadcom Inc., 10.00%, 144A
United States 130,000   37,919,175
b
Citigroup Global Markets Holdings Inc. into Cisco Systems Inc., 7.00%, 144A
United States 743,000   41,737,757
b
JPMorgan Chase Bank NA into Apple Inc., 7.00%, 144A
United States 320,000   66,579,250
b
Merrill Lynch International & Co. C.V. into Microsoft Corp., 6.00%, 144A
United States 340,000   45,640,427
b
Royal Bank of Canada into Intel Corp., 8.00%, 144A
United States 800,000   39,032,200
b
Wells Fargo Bank National Assn. into Texas Instruments Inc., 7.50%, 144A
United States 300,000   37,192,231
          268,101,040
 
Total Equity-Linked Securities (Cost $396,767,825)
      414,165,906
  Convertible Preferred Stocks (Cost $10,227,000) 0.3%        
  Utilities 0.3%        
 
Sempra Energy, 6.00%, cvt. pfd., A
United States 100,000   11,116,000
  Preferred Stocks (Cost $15,000,000) 0.4%        
  Financials 0.4%        
 
JPMorgan Chase & Co., 6.00%, pfd., EE, 6/01/67
United States 600,000   16,686,000
  |  59
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Managed Income Fund (continued)
    Country Units   Value
  Index-Linked Notes (Cost $33,147,500) 0.9%        
  Financials 0.9%        
b,c
Morgan Stanley Finance LLC, senior note, 144A, 7.07%, 10/03/19
United States     250,000      $33,837,500
      Principal
Amount* 		   
  Convertible Bonds (Cost $3,456,629) 0.1%        
  Energy 0.1%        
 
Chesapeake Energy Corp., cvt., senior note, 5.50%, 9/15/26
United States   $5,000,000       3,578,893
  Corporate Bonds 35.2%        
  Communication Services 2.2%        
b
CCO Holdings LLC/CCO Holdings Capital Corp., senior bond, 144A, 5.125%, 5/01/27
United States 15,000,000   15,506,250
 
DISH DBS Corp., senior bond, 5.875%, 7/15/22
United States 12,000,000   12,174,240
b
Sirius XM Radio Inc., senior bond, 144A, 5.375%, 4/15/25
United States 15,000,000   15,618,750
 
Sprint Corp., senior note, 7.625%, 2/15/25
United States 10,000,000   11,100,300
b
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC, senior secured bond, first lien, 144A, 4.738%, 9/20/29
United States 25,000,000   26,312,500
          80,712,040
  Consumer Discretionary 2.5%        
 
Dollar General Corp., senior bond, 3.875%, 4/15/27
United States 10,000,000   10,543,680
 
Dollar Tree Inc., senior note, 4.00%, 5/15/25
United States 15,000,000   15,647,757
 
Ford Motor Credit Co. LLC, senior note, 5.113%, 5/03/29
United States 25,000,000   25,477,734
 
Las Vegas Sands Corp., senior bond, 3.90%, 8/08/29
United States 10,000,000   10,144,552
 
NIKE Inc., senior bond, 2.375%, 11/01/26
United States 20,000,000   20,007,862
b
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., senior bond, 144A, 5.50%, 3/01/25
United States 10,000,000   10,512,500
          92,334,085
  Consumer Staples 4.0%        
 
Anheuser-Busch Cos. LLC/InBev Worldwide Inc., senior bond, 4.90%, 2/01/46
Belgium 10,000,000   11,389,841
 
BAT Capital Corp., senior note, 3.557%, 8/15/27
United Kingdom 15,000,000   14,966,414
 
The Clorox Co., senior bond, 3.10%, 10/01/27
United States 15,000,000   15,535,283
 
Costco Wholesale Corp., senior note, 2.75%, 5/18/24
United States 15,000,000   15,379,877
 
Kraft Heinz Foods Co., senior bond, 3.00%, 6/01/26
United States 15,000,000   14,759,687
 
The Procter & Gamble Co., senior note, 2.70%, 2/02/26
United States 25,000,000   25,691,413
 
Reynolds American Inc., senior note, 4.45%, 6/12/25
United Kingdom 15,000,000   15,920,541
 
Tyson Foods Inc., senior bond, 3.95%, 8/15/24
United States 12,100,000   12,803,267
 
Walmart Inc., senior bond, 3.25%, 7/08/29
United States 20,000,000   21,289,153
          147,735,476
  Energy 1.5%        
 
Chesapeake Energy Corp., senior note, 8.00%, 1/15/25
United States 7,500,000   6,450,000
 
Nabors Industries Inc., senior note, 5.50%, 1/15/23
United States 25,000,000   23,500,000
  The Williams Cos. Inc.,        
 
senior note, 3.60%, 3/15/22
United States  15,000,000      15,375,852
 
senior note, 4.55%, 6/24/24
United States  10,000,000      10,733,004
          56,058,856
  |  60
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Managed Income Fund (continued)
    Country Principal
Amount* 		  Value
  Corporate Bonds (continued)        
  Financials 8.5%        
  Bank of America Corp.,        
 
senior bond, 3.419% to 12/20/27, FRN thereafter, 12/20/28
United States  $15,000,000      $15,446,408
 
sub. bond, 4.183%, 11/25/27
United States  10,000,000      10,633,903
 
Barclays PLC, senior note, 3.65%, 3/16/25
United Kingdom  15,000,000      15,090,975
d
BB&T Corp., junior sub. bond, 4.80% to 9/01/24, FRN thereafter, Perpetual
United States  25,000,000      24,843,750
 
BBVA USA, sub. note, 3.875%, 4/10/25
United States  15,000,000      15,486,775
  Capital One Financial Corp.,        
 
senior bond, 3.80%, 1/31/28
United States  20,000,000      20,718,295
 
senior note, 3.75%, 3/09/27
United States  10,000,000      10,400,875
 
sub. note, 3.75%, 7/28/26
United States  10,000,000      10,256,043
  Citigroup Inc.,        
 
d junior sub. bond, P, 5.95% to 5/15/25, FRN thereafter, Perpetual
United States  10,000,000      10,671,050
 
sub. bond, 4.125%, 7/25/28
United States  20,000,000      21,172,876
 
The Goldman Sachs Group Inc., senior note, 3.50%, 11/16/26
United States 15,000,000   15,403,400
 
HSBC Holdings PLC, senior note, 4.292% to 9/12/25, FRN thereafter, 9/12/26
United Kingdom 20,000,000   21,232,200
d
JPMorgan Chase & Co., junior sub. bond, V, 5.00% to 7/30/19, FRN thereafter, Perpetual
United States 15,000,000   15,033,750
b
Liberty Mutual Group Inc., senior note, 144A, 4.95%, 5/01/22
United States 7,100,000   7,499,531
  Morgan Stanley,        
 
senior note, 3.125%, 1/23/23
United States  20,000,000      20,395,249
 
senior sub. bond, 4.35%, 9/08/26
United States  15,000,000      16,101,214
 
Navient Corp., senior note, 6.125%, 3/25/24
United States 15,000,000   15,843,750
d
PNC Financial Services Group Inc., junior sub. note, 4.85% to 6/01/23, FRN thereafter, Perpetual
United States 12,000,000   12,191,760
 
Prudential Financial Inc., junior sub. bond, 5.70% to 9/15/28, FRN thereafter, 9/15/48
United States 20,000,000   21,743,600
d
Wells Fargo & Co., junior sub. bond, 5.875% to 6/15/25, FRN thereafter, Perpetual
United States 15,000,000   16,437,825
          316,603,229
  Health Care 7.2%        
 
Anthem Inc., senior bond, 3.65%, 12/01/27
United States 10,000,000   10,368,659
b Bausch Health Cos. Inc.,        
 
senior bond, 144A, 6.125%, 4/15/25
United States   6,300,000       6,463,485
 
senior note, 144A, 5.875%, 5/15/23
United States   3,429,000       3,466,548
 
senior secured note, first lien, 144A, 5.50%, 11/01/25
United States  10,000,000      10,437,500
b
Bayer U.S. Finance II LLC, senior note, 144A, 4.25%, 12/15/25
Germany 15,000,000   15,769,945
 
Biogen Inc., senior note, 3.625%, 9/15/22
United States 10,000,000   10,342,995
b Bristol-Myers Squibb Co.,        
 
senior bond, 144A, 3.40%, 7/26/29
United States  10,000,000      10,457,679
 
senior bond, 144A, 4.25%, 10/26/49
United States  10,000,000      10,959,833
  CHS/Community Health Systems Inc.,        
 
b senior secured note, 144A, 8.00%, 3/15/26
United States  10,000,000       9,612,500
 
senior secured note, first lien, 6.25%, 3/31/23
United States  25,000,000      24,031,250
b
Cigna Corp., senior secured note, 144A, 3.75%, 7/15/23
United States 20,000,000   20,793,802
  CVS Health Corp.,        
 
senior bond, 5.05%, 3/25/48
United States  15,000,000      16,328,198
 
senior note, 3.875%, 7/20/25
United States  15,000,000      15,679,606
  |  61
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Managed Income Fund (continued)
    Country Principal
Amount* 		  Value
  Corporate Bonds (continued)        
  Health Care (continued)        
 
Edwards Lifesciences Corp., senior note, 4.30%, 6/15/28
United States   $9,700,000      $10,617,520
 
Express Scripts Holding Co., senior bond, 3.40%, 3/01/27
United States  15,000,000      15,288,571
 
HCA Inc., senior note, 5.375%, 9/01/26
United States  25,000,000      27,125,000
 
Mylan Inc., senior bond, 4.55%, 4/15/28
United States  19,000,000      20,046,776
 
Mylan NV, senior note, 3.95%, 6/15/26
United States  10,000,000      10,234,550
 
Tenet Healthcare Corp., senior secured note, first lien, 4.625%, 7/15/24
United States  20,000,000      20,450,000
          268,474,417
  Industrials 2.3%        
b
Air Canada 2013-1A Pass Through Trust, first lien, 144A, 4.125%, 11/15/26
Canada 5,163,768   5,453,197
b
Ashtead Capital Inc., second lien, 144A, 4.125%, 8/15/25
United Kingdom 21,000,000   21,308,438
 
CNH Industrial NV, senior bond, 3.85%, 11/15/27
United Kingdom 15,000,000   15,212,700
 
Lockheed Martin Corp., senior bond, 3.55%, 1/15/26
United States 20,000,000   21,351,031
b
TransDigm Inc., senior secured note, 144A, 6.25%, 3/15/26
United States 2,600,000   2,733,250
 
United Rentals North America Inc., senior note, 4.625%, 10/15/25
United States 20,000,000   20,350,000
          86,408,616
  Information Technology 2.3%        
b
CommScope Technologies LLC, senior bond, 144A, 5.00%, 3/15/27
United States 20,000,000   16,875,000
b
Dell International LLC/EMC Corp., senior secured note, first lien, 144A, 4.42%, 6/15/21
United States 18,000,000   18,539,877
 
Fiserv Inc., senior bond, 4.20%, 10/01/28
United States 20,000,000   21,862,546
 
Microchip Technology Inc., senior secured note, 4.333%, 6/01/23
United States 15,000,000   15,603,335
 
Xilinx Inc., senior note, 2.95%, 6/01/24
United States 11,000,000   11,156,573
          84,037,331
  Materials 1.2%        
 
DuPont de Nemours Inc., senior note, 4.493%, 11/15/25
United States 20,000,000   21,871,181
b
Syngenta Finance NV, senior note, 144A, 5.182%, 4/24/28
Switzerland 20,000,000   20,935,960
          42,807,141
  Real Estate 2.1%        
 
American Tower Corp., senior bond, 3.375%, 10/15/26
United States 15,000,000   15,377,316
 
HCP Inc., senior bond, 3.875%, 8/15/24
United States 21,700,000   23,029,390
 
Healthcare Trust of America Holdings LP, senior note, 3.375%, 7/15/21
United States 10,000,000   10,134,879
 
Prologis LP, senior note, 4.25%, 8/15/23
United States 12,000,000   12,840,188
 
Realty Income Corp., senior bond, 3.875%, 7/15/24
United States 15,000,000   15,904,079
          77,285,852
  Utilities 1.4%        
 
Duke Energy Corp., senior bond, 3.15%, 8/15/27
United States 20,000,000   20,465,564
b,d
EDF SA, junior sub. note, 144A, 5.25% to 1/29/23, FRN thereafter, Perpetual
France 10,000,000   10,270,850
b
Vistra Operations Co. LLC, senior secured bond, first lien, 144A, 4.30%, 7/15/29
United States 20,000,000   20,143,188
          50,879,602
 
Total Corporate Bonds (Cost $1,239,703,460)
      1,303,336,645
  |  62
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Managed Income Fund (continued)
    Country   Principal
Amount* 		  Value
  U.S. Government and Agency Securities 6.9%          
  U.S. Treasury Note,          
 
2.25%, 3/31/20
United States    $50,000,000      $50,042,969
 
2.75%, 9/30/20
United States   100,000,000     100,851,562
 
2.75%, 9/15/21
United States    50,000,000      50,927,735
 
2.875%, 10/31/23
United States    50,000,000      52,113,281
 
Total U.S. Government and Agency Securities

(Cost $249,686,560)
        253,935,547
    Number of
Contracts 		  Notional
Amount* 		   
  Options Purchased (Cost $12,330,388) 0.2%          
  Puts - Exchange-Traded          
 
SPDR S&P 500 ETF Trust, December Strike Price $290, Expires 12/20/19
10,000   1,000,000   8,130,000
 
Total Investments before Short Term Investments (Cost $3,091,370,076)
        3,397,548,627
    Country   Principal
Amount* 		   
  Short Term Investments 7.8%          
  U.S. Government and Agency Securities (Cost $74,895,705) 2.0%          
 
U.S. Treasury Note, 1.75%, 9/30/19
United States   $75,000,000   74,950,675
 
Total Investments before Money Market Funds

(Cost $3,166,265,781)
        3,472,499,302
        Shares    
  Money Market Funds (Cost $213,624,571) 5.8%          
e,f
Institutional Fiduciary Trust Money Market Portfolio, 2.00%
United States   213,624,571   213,624,571
 
Total Investments (Cost $3,379,890,352) 99.5%
        3,686,123,873
 
Options Written (0.1)%
        (3,110,000)
 
Other Assets, less Liabilities 0.6%
        19,813,649
 
Net Assets 100.0%
        $3,702,827,522
    Number of
Contracts 		  Notional
Amount* 		   
  Options Written (0.1)%          
  Calls - Exchange-Traded          
 
Analog Devices Inc., September Strike Price $120, Expires 9/20/19
3,500   350,000   (1,330,000)
 
Chevron Corp., September Strike Price $130, Expires 9/20/19
4,000   400,000   (272,000)
 
General Electric Co., August Strike Price $11, Expires 8/16/19
24,300   2,430,000   (243,000)
            (1,845,000)
  |  63
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Managed Income Fund (continued)
    Number of
Contracts 		Notional
Amount* 		  Value
  Options Written (continued)        
  Puts - Exchange-Traded        
 
The Boeing Co., August Strike Price $325, Expires 8/16/19
1,000     100,000        $(230,000)
 
SPDR S&P 500 ETF Trust, December Strike Price $250, Expires 12/20/19
5,000     500,000      (1,035,000)
          (1,265,000)
 
Total Options Written (Premiums received $4,990,046)
      $(3,110,000)
 
See Abbreviations on page 114.
*The principal/notional amount is stated in U.S. dollars unless otherwise indicated.
aA portion or all of the security is held in connection with written option contracts open at period end.
bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At July 31, 2019, the aggregate value of these securities was $727,673,989, representing 19.7% of net assets.
cSecurity pays a fixed 2.00% coupon rate and a variable coupon based on the distribution of the Morgan Stanley Custom Enhanced SPX B DT Index 20 Delta. The coupon rate shown represents the combined rate at period end. There may be no guarantee of a return of principal with index-linked notes and the appreciation potential may be limited. Cash payment at maturity or upon early redemption is based on the performance of the Morgan Stanley Custom Enhanced SPX B DT Index 20 Delta.
dPerpetual security with no stated maturity date.
eSee  Note 7 regarding investments in affiliated management investment companies.
fThe rate shown is the annualized seven-day effective yield at period end.
  |  64
Franklin Investors Securities Trust
Statement of Investments, July 31, 2019 (unaudited)
Franklin Real Return Fund
    Country Shares   Value
  Common Stocks 11.2%        
  Energy 6.2%        
 
Anadarko Petroleum Corp.
United States     23,700     $1,745,742
 
Canadian Natural Resources Ltd.
Canada     33,700       851,936
 
Chevron Corp.
United States     13,700     1,686,607
 
Exxon Mobil Corp.
United States     15,277     1,135,998
 
Halliburton Co.
United States     33,300       765,900
 
Noble Energy Inc.
United States     27,400       604,992
 
Occidental Petroleum Corp.
United States 18,200   934,752
 
Pioneer Natural Resources Co.
United States 4,700   648,788
 
Royal Dutch Shell PLC, A, ADR
United Kingdom 19,800   1,245,222
 
Schlumberger Ltd.
United States 20,850   833,374
          10,453,311
  Materials 5.0%        
 
BHP Group PLC, ADR
United Kingdom 32,700   1,561,098
 
Corteva Inc.
United States 8,866   261,547
 
Dow Inc.
United States 8,866   429,469
 
DuPont de Nemours Inc.
United States 8,866   639,771
 
Freeport-McMoRan Inc.
United States 53,046   586,689
 
Newmont Goldcorp Corp.
United States 33,324   1,216,992
 
Nucor Corp.
United States 21,000   1,141,980
 
Nutrien Ltd.
Canada 19,624   1,075,591
 
Rio Tinto PLC, ADR
Australia 27,700   1,581,116
          8,494,253
 
Total Common Stocks (Cost $19,324,555)
      18,947,564
  Management Investment Companies 12.2%        
  Diversified Financials 12.2%        
a
Franklin Pelagos Commodities Strategy Fund, Class R6
United States 969,029   5,329,659
 
iShares Global Infrastructure ETF
United States 95,000   4,298,750
 
SPDR Dow Jones REIT ETF
United States 109,700   11,007,298
 
Total Management Investment Companies (Cost $15,723,281)
      20,635,707
      Principal
Amount 		   
  U.S. Government and Agency Securities 72.2%        
b U.S. Treasury Note,        
 
Index Linked, 1.375%, 1/15/20
United States $12,552,315    12,505,244
 
Index Linked, 0.125%, 4/15/20
United States 10,388,164    10,269,945
 
Index Linked, 1.25%, 7/15/20
United States  9,393,551     9,431,284
 
Index Linked, 0.125%, 4/15/21
United States 12,533,232    12,385,598
 
Index Linked, 0.625%, 7/15/21
United States  7,157,875     7,183,634
 
Index Linked, 0.125%, 1/15/22
United States  7,014,662     6,953,045
 
Index Linked, 0.125%, 4/15/22
United States 22,112,098    21,893,563
 
Index Linked, 0.125%, 7/15/22
United States  6,903,985     6,869,986
 
Index Linked, 0.125%, 1/15/23
United States  6,989,233     6,938,771
 
Index Linked, 0.625%, 1/15/24
United States  8,231,062     8,360,982
 
Index Linked, 0.125%, 7/15/24
United States  8,627,629     8,606,647
Quarterly Statement of Investments  |  See Notes to Statements of Investments.  |  65
Franklin Investors Securities Trust
Statement of Investments (unaudited)
Franklin Real Return Fund (continued)
    Country Principal
Amount 		  Value
  U.S. Government and Agency Securities (continued)        
b U.S. Treasury Note, (continued)        
 
Index Linked, 0.25%, 1/15/25
United States $10,487,143    $10,485,689
 
Total U.S. Government and Agency Securities

(Cost $121,819,187)
      121,884,388
 
Total Investments before Short Term Investments (Cost $156,867,023)
      161,467,659
  Short Term Investments (Cost $7,525,772) 4.5%        
  Repurchase Agreements 4.5%        
c
Joint Repurchase Agreement, 2.53%, 8/01/19 (Maturity Value $7,526,300)

BNP Paribas Securities Corp. (Maturity Value $6,322,317)

Deutsche Bank Securities Inc. (Maturity Value $951,099)

HSBC Securities (USA) Inc. (Maturity Value $252,884)

Collateralized by U.S. Government Agency Securities, 2.50% - 4.575%, 6/12/26 - 2/20/69; and U.S. Treasury Notes, 1.25% - 3.125%, 2/29/20 - 5/15/21 (valued at $7,678,103)
United States  7,525,772     7,525,772
 
Total Investments (Cost $164,392,795) 100.1%
      168,993,431
 
Other Assets, less Liabilities (0.1)%
      (177,277)
 
Net Assets 100.0%
      $168,816,154
  
See Abbreviations on page 114.
aSee  Note 7 regarding investments in affiliated management investment companies.
bPrincipal amount of security is adjusted for inflation.  
cInvestment is through participation in a joint account with other funds managed by the investment manager or an affiliate of the investment manager. At July 31, 2019, all repurchase agreements had been entered into on that date.
  |  66
Franklin Investors Securities Trust
Consolidated Statement of Investments, July 31, 2019 (unaudited)
Franklin Total Return Fund
    Country Shares/Warrants   Value
  Common Stocks and Other Equity Interests 0.0%†        
  Commercial & Professional Services 0.0%†        
a
Remington Outdoor Co. Inc.
United States         52,019         $110,540
  Consumer Services 0.0%†        
a,b,c
Turtle Bay Resort
United States      1,550,567          34,113
  Energy 0.0%†        
a
Halcon Resources Corp.
United States        229,059          25,884
a
Halcon Resources Corp., wts., 9/09/20
United States         20,425             408
a
Riviera Resources Inc.
United States 12,605   143,823
a
Roan Resources Inc.
United States 13,179   15,815
          185,930
  Materials 0.0%†        
a,c,d
Appvion Operations Inc.
United States 13,033   149,013
a
Verso Corp., A
United States 6,954   112,515
a
Verso Corp., wts., 7/25/23
United States 732   1,391
          262,919
  Retailing 0.0%†        
a,c,d
K2016470219 South Africa Ltd., A
South Africa 28,762,824   20,017
a,c,d
K2016470219 South Africa Ltd., B
South Africa 2,862,311   1,992
          22,009
 
Total Common Stocks and Other Equity Interests (Cost $7,358,890)
      615,511
  Management Investment Companies 6.4%        
  Diversified Financials 6.4%        
e
Franklin Floating Rate Income Fund
United States 1,889,310   16,266,961
e
Franklin Liberty Investment Grade Corporate ETF
United States 8,555,000   214,811,772
e
Franklin Liberty Senior Loan ETF
United States 914,900   22,765,731
 
Invesco Senior Loan ETF
United States 1,610,000   36,740,200
 
Total Management Investment Companies (Cost $287,711,229)
      290,584,664
  Preferred Stocks (Cost $2,325,000) 0.1%        
  Diversified Financials 0.1%        
f
Citigroup Capital XIII, 8.137%, pfd., 10/30/40
United States 93,000   2,529,600
      Principal
Amount* 		   
  Corporate Bonds 20.9%        
  Automobiles & Components 0.1%        
 
Aptiv Corp., senior bond, 4.15%, 3/15/24
United States 5,100,000   5,360,094
Quarterly Statement of Investments  |  See Notes to Statements of Investments.  |  67
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Corporate Bonds (continued)        
  Banks 2.9%        
g
Akbank T.A.S., senior note, 144A, 5.125%, 3/31/25
Turkey      5,000,000       $4,653,425
h
Banca Monte dei Paschi di Siena SpA, secured note, Reg S, 2.125%, 11/26/63
Italy     20,000,000 EUR    23,478,380
  Bank of America Corp.,        
 
senior bond, 3.875%, 8/01/25
United States      5,600,000       5,975,273
 
senior note, 3.50%, 4/19/26
United States     20,400,000      21,332,441
  Barclays PLC,        
 
senior note, 4.61% to 2/14/22, FRN thereafter, 2/15/23
United Kingdom      7,200,000       7,428,708
 
sub. note, 4.375%, 9/11/24
United Kingdom        500,000         509,453
  HSBC Holdings PLC,        
 
senior note, 3.60%, 5/25/23
United Kingdom     10,900,000      11,310,875
 
senior note, 4.30%, 3/08/26
United Kingdom      1,600,000       1,714,928
g
Intesa Sanpaolo SpA, senior note, 144A, 6.50%, 2/24/21
Italy 1,000,000   1,050,565
 
PHH Corp., senior note, 7.375%, 9/01/19
United States 5,400,000   5,402,160
 
Royal Bank of Canada, secured note, 2.10%, 10/14/21
Canada 11,500,000   11,483,952
g
Standard Chartered PLC, senior note, 144A, 3.885% to 3/15/23, FRN thereafter, 3/15/24
United Kingdom 3,000,000   3,063,915
 
SVB Financial Group, senior note, 3.50%, 1/29/25
United States 6,000,000   6,116,428
h
Turkiye Vakiflar Bankasi TAO, secured note, Reg S, 2.375%, 11/04/22
Turkey 3,100,000 EUR 3,422,604
 
Wells Fargo & Co., sub. bond, 4.65%, 11/04/44
United States 10,000,000   11,317,857
g
Westpac Banking Corp., senior secured note, 144A, 2.25%, 11/09/21
Australia 10,800,000   10,809,666
          129,070,630
  Capital Goods 0.8%        
g
Amcor Finance USA Inc., senior note, 144A, 3.625%, 4/28/26
Australia 11,800,000   11,935,511
g
Beacon Roofing Supply Inc., senior note, 144A, 4.875%, 11/01/25
United States 6,100,000   6,061,875
 
CNH Industrial Capital LLC, senior note, 3.875%, 10/15/21
United States 3,400,000   3,487,244
 
CNH Industrial NV, senior bond, 3.85%, 11/15/27
United Kingdom 4,600,000   4,665,228
g
Harsco Corp., senior note, 144A, 5.75%, 7/31/27
United States 5,000,000   5,162,500
i
Onsite Rental Group Operations Pty. Ltd., secured note, PIK, 6.10%, 10/26/23
Australia 183,113   141,913
g
Vertiv Group Corp., senior note, 144A, 9.25%, 10/15/24
United States 6,400,000   6,064,000
          37,518,271
  Commercial & Professional Services 0.2%        
 
United Rentals North America Inc., senior bond, 5.875%, 9/15/26
United States 6,000,000   6,405,000
g
West Corp., senior note, 144A, 8.50%, 10/15/25
United States 5,000,000   4,237,500
          10,642,500
  Consumer Durables & Apparel 0.1%        
g
Hanesbrands Inc., senior bond, 144A, 4.875%, 5/15/26
United States 1,900,000   1,995,000
  |  68
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Corporate Bonds (continued)        
  Consumer Services 0.4%        
g
Ascend Learning LLC, senior note, 144A, 6,875%, 8/01/25
United States      1,300,000       $1,352,000
g
Stars Group Holdings BV/Stars Group U.S. Co-Borrower LLC, senior note, 144A, 7.00%, 7/15/26
Canada      4,000,000       4,225,000
g
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., senior bond, 144A, 5.25%, 5/15/27
United States     11,100,000      11,391,375
          16,968,375
  Diversified Financials 1.9%        
g
Bayer US Finance LLC, senior note, 144A, 3.00%, 10/08/21
Germany      3,600,000       3,625,461
 
Capital One Bank USA NA, sub. bond, 3.375%, 2/15/23
United States 6,000,000   6,134,541
 
Capital One Financial Corp., senior note, 3.20%, 2/05/25
United States 9,700,000   9,903,527
g
FirstCash Inc., senior note, 144A, 5.375%, 6/01/24
United States 4,000,000   4,150,120
 
GE Capital International Funding Co., senior bond, 3.373%, 11/15/25
United States 17,000,000   17,325,823
  The Goldman Sachs Group Inc.,        
 
senior note, 3.75%, 5/22/25
United States      7,700,000       8,053,581
 
senior note, 3.75%, 2/25/26
United States     21,300,000      22,313,993
 
Navient Corp., senior bond, 8.00%, 3/25/20
United States 5,000,000   5,168,750
 
Springleaf Finance Corp., senior note, 6.625%, 1/15/28
United States 6,400,000   6,912,000
          83,587,796
  Energy 1.3%        
g
Aker BP ASA, senior note, 144A, 4.75%, 6/15/24
Norway 3,400,000   3,502,000
g
California Resources Corp., secured note, second lien, 144A, 8.00%, 12/15/22
United States 4,000,000   2,800,000
 
Cheniere Corpus Christi Holdings LLC, senior secured note, first lien, 5.875%, 3/31/25
United States 1,600,000   1,764,160
 
Cheniere Energy Partners LP, senior secured note, first lien, 5.25%, 10/01/25
United States 4,000,000   4,160,080
  Enable Midstream Partners LP,        
 
senior bond, 5.00%, 5/15/44
United States      1,200,000       1,143,278
 
senior note, 3.90%, 5/15/24
United States      3,600,000       3,685,893
 
Energy Transfer Operating LP, senior bond, 5.15%, 2/01/43
United States 6,000,000   6,119,367
g
Gaz Capital SA, (OJSC Gazprom), loan participation, senior note, 144A, 3.85%, 2/06/20
Russia 10,000,000   10,058,300
g
Harvest Operations Corp., senior note, 144A, 4.20%, 6/01/23
South Korea 3,800,000   4,020,295
 
MPLX LP, senior bond, 4.00%, 2/15/25
United States 4,600,000   4,813,913
 
Oceaneering International Inc., senior note, 4.65%, 11/15/24
United States 3,000,000   2,900,640
 
Sanchez Energy Corp., senior note, 6.125%, 1/15/23
United States 3,000,000   195,000
 
Sunoco Logistics Partners Operations LP, senior note, 4.25%, 4/01/24
United States 6,100,000   6,412,920
 
Valaris PLC, senior bond, 5.75%, 10/01/44
United States 3,700,000   2,136,750
j Weatherford International Ltd.,        
 
senior note, 7.75%, 6/15/21
United States      1,600,000         744,000
 
senior note, 8.25%, 6/15/23
United States      2,000,000         965,000
g
Woodside Finance Ltd., senior note, 144A, 3.70%, 9/15/26
Australia 4,000,000   4,081,304
          59,502,900
  |  69
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Corporate Bonds (continued)        
  Food & Staples Retailing 0.5%        
g
Aramark Services Inc., senior bond, 144A, 5.00%, 2/01/28
United States      6,000,000       $6,270,000
 
The Kroger Co., senior note, 4.00%, 2/01/24
United States     15,400,000      16,285,449
          22,555,449
  Food, Beverage & Tobacco 0.6%        
 
Bunge Ltd. Finance Corp., senior note, 3.25%, 8/15/26
United States     12,000,000      11,640,529
 
Kraft Heinz Foods Co., senior bond, 3.00%, 6/01/26
United States      5,100,000       5,018,293
  Reynolds American Inc.,        
 
senior bond, 5.70%, 8/15/35
United Kingdom      9,300,000      10,453,036
 
senior bond, 5.85%, 8/15/45
United Kingdom        300,000         329,991
          27,441,849
  Health Care Equipment & Services 0.7%        
g
Centene Corp., senior note, 144A, 5.375%, 6/01/26
United States 5,600,000   5,929,000
 
CHS/Community Health Systems Inc., senior secured note, first lien, 6.25%, 3/31/23
United States 4,000,000   3,845,000
g
Cigna Corp., senior secured note, 144A, 4.125%, 11/15/25
United States 5,900,000   6,271,247
 
CVS Health Corp., senior bond, 4.30%, 3/25/28
United States 1,800,000   1,912,180
 
Edwards Lifesciences Corp., senior note, 4.30%, 6/15/28
United States 1,700,000   1,860,803
 
HCA Inc., senior note, 5.375%, 9/01/26
United States 5,000,000   5,425,000
g
MEDNAX Inc., senior note, 144A, 6.25%, 1/15/27
United States 6,200,000   6,169,000
          31,412,230
  Insurance 1.1%        
 
Aflac Inc., senior note, 0.932%, 1/25/27
United States 1,400,000,000 JPY 13,114,266
g
Liberty Mutual Group Inc., senior bond, 144A, 4.569%, 2/01/29
United States 12,000,000   13,249,129
g
Teachers Insurance & Annuity Assn. of America, sub. bond, 144A, 4.90%, 9/15/44
United States 20,400,000   24,129,277
          50,492,672
  Materials 1.4%        
g
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., senior note, 144A, 6.00%, 2/15/25
Luxembourg 5,000,000   5,187,500
g
Cemex SAB de CV, senior secured bond, first lien, 144A, 5.70%, 1/11/25
Mexico 4,000,000   4,094,940
 
The Chemours Co., senior note, 5.375%, 5/15/27
United States 3,100,000   2,743,500
g
First Quantum Minerals Ltd., senior note, 144A, 7.25%, 4/01/23
Zambia 4,100,000   4,074,375
g FMG Resources (August 2006) Pty. Ltd.,        
 
senior note, 144A, 5.125%, 3/15/23
Australia        900,000         939,375
 
senior note, 144A, 5.125%, 5/15/24
Australia      3,100,000       3,239,500
 
Freeport-McMoRan Inc., senior bond, 3.875%, 3/15/23
United States 4,900,000   4,923,030
g
Mauser Packaging Solutions Holding Co., senior note, 144A, 7.25%, 4/15/25
United States 4,000,000   3,805,000
g
New Gold Inc., senior note, 144A, 6.375%, 5/15/25
Canada 1,800,000   1,566,000
g
Northwest Acquisitions ULC/Dominion Finco Inc., secured note, second lien, 144A, 7.125%, 11/01/22
Canada 1,300,000   887,250
g
Novelis Corp., senior bond, 144A, 5.875%, 9/30/26
United States 5,000,000   5,193,750
g
OI European Group BV, senior note, 144A, 4.00%, 3/15/23
United States 5,500,000   5,555,000
g
Plastipak Holdings Inc., senior note, 144A, 6.25%, 10/15/25
United States 2,300,000   2,076,440
 
Reliance Steel & Aluminum Co., senior note, 4.50%, 4/15/23
United States 5,600,000   5,904,280
  |  70
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Corporate Bonds (continued)        
  Materials (continued)        
g Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg SA,        
 
senior note, 144A, 7.00%, 7/15/24
United States      2,800,000       $2,896,250
 
senior secured note, first lien, 144A, 5.125%, 7/15/23
United States      1,600,000       1,632,000
g
SABIC Capital II BV, senior note, 144A, 4.50%, 10/10/28
Saudi Arabia      4,200,000       4,596,522
g
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp., senior note, 144A, 7.50%, 6/15/25
United States      4,500,000       4,477,275
          63,791,987
  Media & Entertainment 1.0%        
g CCO Holdings LLC/CCO Holdings Capital Corp.,        
 
senior bond, 144A, 5.375%, 5/01/25
United States      3,200,000       3,312,000
 
senior bond, 144A, 5.00%, 2/01/28
United States      1,500,000       1,543,200
g CSC Holdings LLC,        
 
senior bond, 144A, 5.375%, 2/01/28
United States      3,000,000       3,135,000
 
senior secured note, first lien, 144A, 5.50%, 5/15/26
United States      4,000,000       4,190,000
g,k
Diamond Sports Group LLC/Diamond Sports Finance Co., senior secured note, 144A, 5.375%, 8/15/26
United States 6,200,000   6,316,250
g
Nexstar Broadcasting Inc., senior note, 144A, 5.625%, 8/01/24
United States 5,000,000   5,206,250
g
Nexstar Escrow Corp., senior note, 144A, 5.625%, 7/15/27
United States 4,900,000   5,089,875
g
Tencent Holdings Ltd., senior note, 144A, 3.595%, 1/19/28
China 13,200,000   13,606,494
          42,399,069
  Pharmaceuticals, Biotechnology & Life Sciences 1.1%        
g
Avantor Inc., senior secured note, first lien, 144A, 6.00%, 10/01/24
United States 4,400,000   4,719,044
g
Bausch Health Cos. Inc., senior bond, 144A, 6.125%, 4/15/25
United States 4,800,000   4,924,560
g
Bayer U.S. Finance II LLC, senior bond, 144A, 4.375%, 12/15/28
Germany 3,900,000   4,101,436
 
Biogen Inc., senior bond, 5.20%, 9/15/45
United States 18,200,000   20,679,553
 
PerkinElmer Inc., senior note, 5.00%, 11/15/21
United States 13,200,000   13,819,792
          48,244,385
  Real Estate 0.6%        
  American Tower Corp.,        
 
senior bond, 4.40%, 2/15/26
United States      9,400,000      10,160,403
 
senior bond, 3.375%, 10/15/26
United States      6,500,000       6,663,504
 
National Retail Properties Inc., senior bond, 4.30%, 10/15/28
United States 9,700,000   10,567,075
          27,390,982
  Retailing 0.8%        
 
Alibaba Group Holding Ltd., senior bond, 4.50%, 11/28/34
China 7,800,000   8,724,339
 
Dollar Tree Inc., senior note, 4.00%, 5/15/25
United States 13,100,000   13,665,708
c,d,i
K2016470219 South Africa Ltd., senior secured note, 144A, PIK, 3.00%, 12/31/22
South Africa 2,279,634   2,842
c,d,i
K2016470260 South Africa Ltd., senior secured note, 144A, PIK, 25.00%, 12/31/22
South Africa 541,623   5,306
g
Party City Holdings Inc., senior note, 144A, 6.625%, 8/01/26
United States 5,100,000   4,921,500
g
PetSmart Inc., senior note, 144A, 7.125%, 3/15/23
United States 9,500,000   8,906,250
          36,225,945
  |  71
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Corporate Bonds (continued)        
  Semiconductors & Semiconductor Equipment 0.6%        
 
Maxim Integrated Products Inc., senior note, 3.375%, 3/15/23
United States     22,000,000      $22,434,280
 
Qorvo Inc., senior note, 5.50%, 7/15/26
United States      5,000,000       5,279,000
          27,713,280
  Software & Services 0.3%        
 
Fiserv Inc., senior bond, 3.85%, 6/01/25
United States      9,300,000       9,875,679
g
Symantec Corp., senior note, 144A, 5.00%, 4/15/25
United States      5,000,000       5,105,267
          14,980,946
  Technology Hardware & Equipment 0.5%        
g
CommScope Technologies LLC, senior bond, 144A, 5.00%, 3/15/27
United States 5,000,000   4,218,750
  Juniper Networks Inc.,        
 
senior bond, 4.50%, 3/15/24
United States      4,500,000       4,837,073
 
senior bond, 4.35%, 6/15/25
United States      9,300,000       9,908,632
g
Tempo Acquisition LLC/Tempo Acquisition Finance Corp., senior note, 144A, 6.75%, 6/01/25
United States 4,000,000   4,145,000
          23,109,455
  Telecommunication Services 0.3%        
 
Telefonica Emisiones SA, senior note, 4.103%, 3/08/27
Spain 7,600,000   8,083,854
 
Verizon Communications Inc., senior bond, 4.812%, 3/15/39
United States 6,265,000   7,210,078
          15,293,932
  Transportation 1.0%        
 
Burlington Northern and Santa Fe 99-2 Trust, secured bond, 7.57%, 1/02/21
United States 14,337   14,817
g
DAE Funding LLC, senior note, 144A, 5.00%, 8/01/24
United Arab Emirates 9,900,000   10,444,500
g
DP World PLC, senior bond, 144A, 6.85%, 7/02/37
United Arab Emirates 3,700,000   4,719,257
g
Kazakhstan Temir Zholy Finance BV, senior bond, 144A, 6.95%, 7/10/42
Kazakhstan 7,400,000   9,513,810
g
Mexico City Airport Trust, senior secured bond, first lien, 144A, 5.50%, 7/31/47
Mexico 4,500,000   4,485,645
h
RZD Capital PLC, (Russian Railways), loan participation, senior bond, Reg S, 5.70%, 4/05/22
Russia 8,000,000   8,506,720
g
Transurban Finance Co. Pty. Ltd., senior secured bond, 144A, 4.125%, 2/02/26
Australia 8,200,000   8,597,946
 
Union Pacific Railroad Co. 2005 Pass Through Trust, 2005-1, 5.082%, 1/02/29
United States 115,805   124,519
          46,407,214
  Utilities 2.7%        
 
Calpine Corp., senior bond, 5.75%, 1/15/25
United States 5,000,000   5,018,750
 
Commonwealth Edison Co., secured bond, 6.45%, 1/15/38
United States 700,000   989,232
 
Duke Energy Corp., senior bond, 3.15%, 8/15/27
United States 15,400,000   15,758,484
g,l
EDF SA, junior sub. note, 144A, 5.25% to 1/29/23, FRN thereafter, Perpetual
France 24,000,000   24,650,040
g
EDP Finance BV, senior note, 144A, 3.625%, 7/15/24
Portugal 6,600,000   6,879,510
g
Enogex LLC, senior bond, 144A, 6.25%, 3/15/20
United States 5,000,000   5,097,469
 
Georgia Power Co., senior bond, 4.30%, 3/15/42
United States 9,000,000   9,652,274
g
Israel Electric Corp. Ltd., secured bond, 144A, 4.25%, 8/14/28
Israel 6,700,000   7,032,186
 
PacifiCorp., secured bond, 6.10%, 8/01/36
United States 10,200,000   13,465,068
  |  72
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Corporate Bonds (continued)        
  Utilities (continued)        
 
The Southern Co., senior bond, 3.25%, 7/01/26
United States      7,950,000       $8,120,983
g State Grid Overseas Investment 2016 Ltd.,        
 
senior note, 144A, 3.50%, 5/04/27
China     10,700,000      11,135,650
 
senior note, 144A, 4.25%, 5/02/28
China      6,700,000       7,379,179
g Talen Energy Supply LLC,        
 
senior note, 144A, 10.50%, 1/15/26
United States      1,500,000       1,413,750
 
senior secured note, 144A, 7.25%, 5/15/27
United States      5,500,000       5,442,910
 
Virginia Electric & Power Co., senior bond, 6.35%, 11/30/37
United States 520,000   706,451
          122,741,936
 
Total Corporate Bonds (Cost $919,930,927)
      944,846,897
m Senior Floating Rate Interests 4.0%        
  Automobiles & Components 0.2%        
  Adient US LLC,        
 
Initial Term Loans, 6.815%, (3-month USD LIBOR + 4.25%), 5/06/24
United States        775,000         747,150
 
Initial Term Loans, 6.889%, (6-month USD LIBOR + 4.25%), 5/06/24
United States      2,325,000       2,241,451
 
Allison Transmission Inc., Initial Term Loans, 4.261%, (1-month USD LIBOR + 2.00%), 3/29/26
United States 3,796,179   3,823,280
 
Thor Industries Inc., Initial USD Term Loans, 6.188%, (1-month USD LIBOR + 3.75%), 2/01/26
United States 2,817,250   2,790,839
 
TI Group Automotive Systems LLC, Initial US Term Loan, 4.734%, (1-month USD LIBOR + 2.50%), 6/30/22
United States 1,123,107   1,121,703
          10,724,423
  Capital Goods 0.1%        
 
Altra Industrial Motion Corp., Term Loan, 4.234%, (1-month USD LIBOR + 2.00%), 10/01/25
United States 593,326   590,602
 
Doncasters U.S. Finance LLC, Second Lien Term Loans, 10.58%, (3-month USD LIBOR + 8.25%), 10/09/20
United States 464,417   138,993
 
Harsco Corp., Term Loan B-2, 4.50%, (1-month USD LIBOR + 2.25%), 12/10/24
United States 129,294   129,670
 
Onsite Rental Group Operations Pty. Ltd., Term Loan, 6.766%, (1-month USD LIBOR + 4.50%), 10/25/22
Australia 133,931   132,257
 
RBS Global Inc. (Rexnord), Term B Loan, 4.234%, (1-month USD LIBOR + 2.00%), 8/21/24
United States 3,000,000   3,015,936
          4,007,458
  Commercial & Professional Services 0.3%        
 
Prime Security Services Borrower LLC, Term B-1 Loans, 4.984%, (1-month USD LIBOR + 2.75%), 5/02/22
United States 5,612,597   5,615,403
 
United Rentals North America Inc., Initial Term Loans, 3.984%, (1-month USD LIBOR + 1.75%), 10/31/25
United States 6,573,504   6,594,046
          12,209,449
  |  73
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
m Senior Floating Rate Interests (continued)        
  Consumer Services 0.3%        
 
Aristocrat Technologies Inc., Term B-3 Loans, 4.028%, (3-month USD LIBOR + 1.75%), 10/19/24
United States        695,429         $696,559
 
Avis Budget Car Rental LLC, Tranche B Term Loans, 4.24%, (1-month USD LIBOR + 2.00%), 2/13/25
United States      4,987,983       4,985,913
 
Eldorado Resorts Inc., Initial Term Loan, 4.563% - 4.688%, (1-month USD LIBOR + 2.25%), 4/17/24
United States      3,318,231       3,316,847
 
Hilton Worldwide Finance LLC, Refinanced Series B-2 Term Loans, 4.016%, (1-month USD LIBOR + 1.75%), 6/17/26
United States      2,500,000       2,511,720
 
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC (Yum Brands), Term Loan B, 4.05%, (1-month USD LIBOR + 1.75%), 4/03/25
United States      2,992,424       2,996,150
n,o
NASCAR Holdings Inc., Term Loan B, TBD, 9/26/26
United States        367,194         369,183
          14,876,372
  Diversified Financials 0.2%        
 
Asurion LLC, Second Lien Replacement B-2 Term Loans, 8.734%, (1-month USD LIBOR + 6.50%), 8/04/25
United States 25,054   25,524
 
FinCo I LLC (Fortress Investment Group), 2018 Replacement Term Loan, 4.234%, (1-month USD LIBOR + 2.00%), 12/27/22
United States 4,184,462   4,206,037
 
Russell Investments U.S. Institutional Holdco Inc., Initial Term Loan, 5.484%, (1-month USD LIBOR + 3.25%), 6/01/23
United States 3,291,517   3,272,318
 
Trans Union LLC, 2017 Replacement Term A-2 Loans, 3.734%, (1-month USD LIBOR + 1.50%), 8/09/22
United States 2,589,644   2,588,025
          10,091,904
  Energy 0.3%        
n
Centurion Pipeline Co. LLC, Initial Term Loans, 5.484%, (1-month USD LIBOR + 3.25%), 9/28/25
United States 1,216,942   1,220,238
 
Fieldwood Energy LLC, Closing Date Loans, 7.506%, (3-month USD LIBOR + 5.25%), 4/11/22
United States 7,406,688   6,851,186
 
Foresight Energy LLC, Term Loans, 8.272%, (3-month USD LIBOR + 5.75%), 3/28/22
United States 1,723,878   1,292,909
  Utex Industries Inc.,        
 
First Lien Initial Term Loan, 6.234%, (1-month USD LIBOR + 4.00%), 5/21/21
United States        361,596         337,489
 
Second Lien Initial Term Loan, 9.484%, (1-month USD LIBOR + 7.25%), 5/20/22
United States         37,581          34,246
  Wolverine Fuels Holding LLC,        
 
First Lien Initial Term Loan, 8.272%, (3-month USD LIBOR + 5.75%), 8/14/20
United States      2,129,658       2,096,825
 
Second Lien Initial Term Loan, 13.272%, (3-month USD LIBOR + 10.75%), 2/16/21
United States        817,655         774,728
          12,607,621
  Food & Staples Retailing 0.1%        
  Aramark Corp.,        
 
U.S. Term B-2 Loan, 4.08%, (3-month USD LIBOR + 1.75%), 3/28/24
United States      3,614,485       3,623,521
 
U.S. Term B-3 Loan, 4.08%, (3-month USD LIBOR + 1.75%), 3/11/25
United States      1,834,185       1,837,991
  |  74
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
m Senior Floating Rate Interests (continued)        
  Food & Staples Retailing (continued)        
n,o
Whatabrands LLC (Whataburger), Term Loan B, TBD, 8/02/26
United States        231,469         $232,424
          5,693,936
  Food, Beverage & Tobacco 0.2%        
 
CSM Bakery Supplies LLC, Second Lien Term Loan, 10.04%, (3-month USD LIBOR + 7.75%), 7/03/21
United States        412,156         383,648
 
JBS USA Lux SA, New Term Loans, 4.734%, (1-month USD LIBOR + 2.50%), 5/01/26
United States      4,299,148       4,310,343
 
Post Holdings Inc., Series A Incremental Term Loans, 4.27%, (1-month USD LIBOR + 2.00%), 5/24/24
United States      1,771,793       1,773,851
          6,467,842
  Health Care Equipment & Services 0.2%        
 
HCA Inc., Term Loan B11, 4.08%, (3-month USD LIBOR + 1.75%), 3/18/23
United States 1,802,556   1,808,414
  IQVIA Inc.,        
 
Term B-2 Dollar Loans, 4.33%, (3-month USD LIBOR + 2.00%), 1/20/25
United States      1,010,951       1,014,742
 
Term B-3 Dollar Loans, 4.008%, (2-month USD LIBOR + 1.75%), 6/11/25
United States      2,896,058       2,898,470
  National Mentor Holdings Inc.,        
 
Initial Term C Loans, 6.49%, (1-month USD LIBOR + 4.25%), 3/08/26
United States        116,959         117,745
 
Initial Term Loans, 6.49%, (1-month USD LIBOR + 4.25%), 3/08/26
United States      1,878,333       1,890,954
          7,730,325
  Household & Personal Products 0.0%†        
c FGI Operating Co. LLC (Freedom Group),        
 
i Term Loan, PIK, 12.518%, (3-month USD LIBOR + 10.00%), 5/15/22
United States        565,988         545,710
 
Term Loan FILO, 10.018% - 10.022%, (3-month USD LIBOR + 7.50%), 5/15/21
United States      1,127,443       1,124,688
          1,670,398
  Materials 0.3%        
  Appvion Operations, Inc.,        
 
Term Loan, 8.32%, (3-month USD LIBOR + 6.00%), 6/15/26
United States         18,334          18,242
 
Term Loan, 8.22%, (6-month USD LIBOR + 6.00%), 6/15/26
United States        277,082         275,696
 
Ashland LLC, Term B Loan, 3.984% - 4.019%, (1-month USD LIBOR + 1.75%), 5/17/24
United States 6,067,136   6,067,136
 
Axalta Coating Systems U.S. Holdings Inc., Term B-3 Dollar Loan, 4.08%, (3-month USD LIBOR + 1.75%), 6/01/24
United States 946,655   943,328
 
Chemours Co., Tranche B-2 US$ Term Loan, 3.99%, (1-month USD LIBOR + 1.75%), 4/03/25
United States 1,529,534   1,455,907
 
Crown Americas LLC, Dollar Term B Loan, 4.369%, (1-month USD LIBOR + 2.00%), 4/03/25
United States 1,068,270   1,074,798
  |  75
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
m Senior Floating Rate Interests (continued)        
  Materials (continued)        
  Oxbow Carbon LLC,        
 
Second Lien Term Loan, 9.734%, (1-month USD LIBOR + 7.50%), 1/04/24
United States        127,682         $128,001
 
Tranche A Term Loan, 4.734%, (1-month USD LIBOR + 2.50%), 1/04/22
United States      1,870,000       1,860,650
 
Tranche B Term Loan, 5.984%, (1-month USD LIBOR + 3.75%), 1/04/23
United States      3,320,750       3,341,505
          15,165,263
  Media & Entertainment 0.5%        
 
Charter Communications Operating LLC, Term B Loan, 4.33%, (3-month USD LIBOR + 2.00%), 4/30/25
United States 2,992,405   3,001,083
 
CSC Holdings LLC, March 2017 Incremental Term Loans, 4.575%, (1-month USD LIBOR + 2.25%), 7/17/25
United States 1,074,581   1,066,960
n,o
Diamond Sports Group LLC, Term Loan, TBD, 9/30/26
United States 1,137,784   1,141,795
 
Go Daddy Operating Co. LLC, Tranche B-1 Term Loans, 4.234%, (1-month USD LIBOR + 2.00%), 2/15/24
United States 4,842,982   4,863,419
 
Gray Television Inc., Term C Loan, 4.832%, (3-month USD LIBOR + 2.50%), 1/02/26
United States 544,364   546,501
 
Lions Gate Capital Holdings LLC, Term A Loan, 3.984%, (1-month USD LIBOR + 1.75%), 3/22/23
Canada 1,649,088   1,636,036
 
Live Nation Entertainment Inc., Term B-3 Loans, 4.00%, (1-month USD LIBOR + 1.75%), 10/31/23
United States 6,416,313   6,424,333
 
Mediacom Illinois LLC, Tranche N Term Loan, 4.10%, (1-week USD LIBOR + 1.75%), 2/15/24
United States 2,128,689   2,136,646
n,o
Nexstar Broadcasting Inc., Term B-4 Loan, TBD, 7/31/26
United States 733,548   733,776
 
Sinclair Television Group Inc., Tranche B Term Loans, 4.49%, (1-month USD LIBOR + 2.25%), 1/03/24
United States 997,442   998,066
          22,548,615
  Pharmaceuticals, Biotechnology & Life Sciences 0.3%        
 
Endo Luxembourg Finance Co. I S.A.R.L. and Endo LLC, Initial Term Loans, 6.50%, (1-month USD LIBOR + 4.25%), 4/29/24
United States 2,978,176   2,707,907
 
Grifols Worldwide Operations USA Inc., Tranche B Term Loan, 4.599%, (1-week USD LIBOR + 2.25%), 1/31/25
United States 2,391,788   2,400,571
 
Horizon Pharma Inc., Sixth Amendment Refinanced Term Loans, 4.938%, (1-month USD LIBOR + 2.50%), 5/22/26
United States 3,179,283   3,185,244
 
Syneos Health Inc., Initial Term B Loans, 4.234%, (1-month USD LIBOR + 2.00%), 8/01/24
United States 2,765,651   2,766,011
  Valeant Pharmaceuticals International,        
 
First Incremental Term Loan, 5.129%, (1-month USD LIBOR + 2.75%), 11/27/25
United States      2,812,500       2,814,609
 
Initial Term Loans, 5.379%, (1-month USD LIBOR + 3.00%), 6/02/25
United States        320,849         321,751
          14,196,093
  |  76
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
m Senior Floating Rate Interests (continued)        
  Retailing 0.2%        
i 99 Cents Only Stores,        
 
First Lien Term Loan, PIK, 8.83% - 9.022%, (3-month USD LIBOR + 6.50%), 1/13/22
United States        111,699         $100,739
 
First Lien Term Loan, PIK, 9.151%, (6-month USD LIBOR + 6.50%), 1/13/22
United States        135,661         122,349
 
Ascena Retail Group Inc., Tranche B Term Loan, 6.75%, (1-month USD LIBOR + 4.50%), 8/21/22
United States      3,129,095       1,932,216
 
General Nutrition Centers Inc., Tranche B-2 Term Loans, 10.99%, (1-month USD LIBOR + 8.75%), 3/04/21
United States      1,646,911       1,579,387
 
Harbor Freight Tools USA Inc., Refinancing Loans, 4.734%, (1-month USD LIBOR + 2.50%), 8/19/23
United States      2,883,543       2,840,890
  Jo-Ann Stores, Inc.,        
 
Initial Loans, 7.261%, (1-month USD LIBOR + 5.00%), 10/23/23
United States         37,767          32,731
 
Initial Loans, 7.259%, (3-month USD LIBOR + 5.00%), 10/23/23
United States        996,501         863,634
 
PETCO Animal Supplies Stores Inc., Second Amendment Term Loans, 5.506%, (3-month USD LIBOR + 3.25%), 1/26/23
United States 74,392   58,026
n
PetSmart Inc., Amended Loan, 6.38%, (1-month USD LIBOR + 4.00%), 3/11/22
United States 20,772   20,429
 
Wand NewCo. 3 Inc., First Lien Term Loan, 5.86%, (1-month USD LIBOR + 3.50%), 2/05/26
United States 320,776   323,182
          7,873,583
  Semiconductors & Semiconductor Equipment 0.1%        
  MKS Instruments Inc.,        
 
Tranche B-4 Term Loan, 4.234%, (1-month USD LIBOR + 2.00%), 4/29/23
United States         87,741          87,950
 
Tranche B-5 Term Loans, 4.484%, (1-month USD LIBOR + 2.25%), 2/01/26
United States        598,452         600,415
 
ON Semiconductor Corp., 2018 New Replacement Term B-3 Loans, 3.984%, (1-month USD LIBOR + 1.75%), 3/31/23
United States 1,245,405   1,243,589
          1,931,954
  Software & Services 0.1%        
 
Carbonite Inc., Initial Term Loan, 6.006%, (3-month USD LIBOR + 3.75%), 3/26/26
United States 1,077,778   1,080,023
 
LegalZoom.com Inc., 2018 Term Loans, 6.734%, (1-month USD LIBOR + 4.50%), 11/21/24
United States 307,594   309,032
 
TIBCO Software Inc., Term B-2 Loans, 6.39%, (1-month USD LIBOR + 4.00%), 6/30/26
United States 3,300,000   3,309,883
          4,698,938
  Technology Hardware & Equipment 0.1%        
 
CommScope Inc., Initial Term Loans, 5.484%, (1-month USD LIBOR + 3.25%), 4/04/26
United States 4,138,027   4,150,288
  |  77
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
m Senior Floating Rate Interests (continued)        
  Telecommunication Services 0.1%        
  Global Tel*Link Corp.,        
 
n First Lien Term Loan, 6.484%, (1-month USD LIBOR + 4.25%), 11/29/25
United States      1,055,284       $1,005,685
 
Second Lien Term Loan, 10.484%, (1-month USD LIBOR + 8.25%), 11/29/26
United States        127,673         123,843
 
Securus Technologies Holdings Inc., Second Lien Initial Loan, 10.58%, (3-month USD LIBOR + 8.25%), 11/01/25
United States        416,510         377,636
n
Zayo Group LLC, 2017 Incremental Refinancing B-1 Term Loan, 4.234%, (1-month USD LIBOR + 2.00%), 1/19/21
United States      2,992,347       2,995,776
          4,502,940
  Transportation 0.3%        
 
Air Canada, Term Loan, 4.241%, (1-month USD LIBOR + 2.00%), 10/06/23
Canada 40,879   41,049
 
Allegiant Travel Co., Class B Term Loans, 7.065%, (3-month USD LIBOR + 4.50%), 2/05/24
United States 465,417   466,871
 
American Airlines Inc., 2018 Replacement Term Loans, 4.061%, (3-month USD LIBOR + 1.75%), 6/27/25
United States 6,385,500   6,271,762
 
Hertz Corp., Tranche B-1 Term Loan, 4.99%, (1-month USD LIBOR + 2.75%), 6/30/23
United States 3,829,146   3,821,966
 
International Seaways Operating Corp., Initial Term Loans, 8.24%, (3-month USD LIBOR + 6.00%), 6/22/22
United States 46,457   46,457
 
Navios Maritime Midstream Partners LP, Initial Term Loan, 6.89%, (3-month USD LIBOR + 4.50%), 6/18/20
Marshall Islands 1,670,574   1,645,516
 
Navios Maritime Partners LP, Initial Term Loan, 7.44%, (3-month USD LIBOR + 5.00%), 9/14/20
United States 1,997,030   1,989,541
          14,283,162
  Utilities 0.1%        
  EFS Cogen Holdings I LLC (Linden),        
 
Term B Advance, 5.49%, (1-month USD LIBOR + 3.25%), 6/28/23
United States      1,339,985       1,336,635
 
Term B Advance, 5.58%, (3-month USD LIBOR + 3.25%), 6/28/23
United States      3,404,423       3,395,912
          4,732,547
 
Total Senior Floating Rate Interests (Cost $182,805,125)
      180,163,111
  Foreign Government and Agency Securities 5.8%        
g
Angolan Government International Bond, senior note, 144A, 8.25%, 5/09/28
Angola 16,700,000   17,869,501
h
Banque Centrale de Tunisie International Bond, senior note, Reg S, 5.625%, 2/17/24
Tunisia 16,500,000 EUR 18,106,353
g
Dominican Republic, senior note, 144A, 8.90%, 2/15/23
Dominican Republic 437,700,000 DOP 8,694,747
 
The Export-Import Bank of Korea, senior note, 2.25%, 1/21/20
South Korea 18,800,000   18,790,506
  Government of Colombia,        
 
senior bond, 9.85%, 6/28/27
Colombia 27,300,000,000 COP    10,625,176
 
senior bond, 5.00%, 6/15/45
Colombia     13,000,000      14,457,495
  |  78
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Foreign Government and Agency Securities (continued)        
g
Government of Gabon, 144A, 6.375%, 12/12/24
Gabon     17,900,000      $17,813,185
g
Government of Iraq, 144A, 5.80%, 1/15/28
Iraq     18,000,000      17,940,240
g
Government of Kazakhstan, senior bond, 144A, 4.875%, 10/14/44
Kazakhstan      8,200,000       9,513,722
 
Government of Mexico, senior note, 4.15%, 3/28/27
Mexico     17,200,000      17,952,758
 
Government of Peru, 6.55%, 3/14/37
Peru      5,700,000       8,109,818
 
Government of South Africa, senior bond, 7.00%, 2/28/31
South Africa    259,300,000 ZAR    15,286,022
g,h
Government of Spain, senior bond, 144A, Reg S, 1.45%, 4/30/29
Spain     19,700,000 EUR    24,334,688
g Government of Ukraine,        
 
144A, 7.75%, 9/01/20
Ukraine        292,000         301,527
 
144A, 7.75%, 9/01/21
Ukraine        229,000         240,215
 
144A, 7.75%, 9/01/22
Ukraine        229,000         243,524
 
144A, 7.75%, 9/01/23
Ukraine        229,000         245,626
 
144A, 7.75%, 9/01/24
Ukraine        229,000         244,938
 
144A, 7.75%, 9/01/25
Ukraine        229,000         242,829
 
144A, 7.75%, 9/01/26
Ukraine        229,000         241,881
 
144A, 7.75%, 9/01/27
Ukraine        229,000         242,099
 
a,p 144A, VRI, GDP Linked Security, 5/31/40
Ukraine        474,000         404,839
 
senior bond, 144A, 7.375%, 9/25/32
Ukraine     18,200,000      18,525,598
q
Government of Uruguay, senior bond, Index Linked, 3.70%, 6/26/37
Uruguay 498,156,499 UYU 15,487,321
h
Italy Treasury Bond, Reg S, 3.00%, 8/01/29
Italy 20,300,000 EUR 25,503,859
 
Total Foreign Government and Agency Securities

(Cost $259,186,895)
      261,418,467
  U.S. Government and Agency Securities 15.5%        
  U.S. Treasury Bond,        
 
3.50%, 2/15/39
United States      5,000,000       5,936,133
 
3.125%, 11/15/41
United States     12,000,000      13,425,234
 
2.875%, 5/15/43
United States     35,100,000      37,539,861
 
3.00%, 11/15/44
United States     13,000,000      14,190,566
 
2.50%, 2/15/46
United States     50,000,000      49,725,586
 
2.50%, 5/15/46
United States     60,000,000      59,649,610
 
2.25%, 8/15/46
United States     58,500,000      55,237,939
 
2.75%, 11/15/47
United States     19,500,000      20,339,033
 
3.125%, 5/15/48
United States     10,500,000      11,771,690
 
3.00%, 8/15/48
United States     17,000,000      18,630,606
 
2.875%, 5/15/49
United States      7,000,000       7,499,434
  U.S. Treasury Note,        
 
2.125%, 6/30/21
United States     47,500,000      47,712,451
 
2.00%, 8/31/21
United States     60,000,000      60,147,656
 
2.375%, 8/15/24
United States     40,500,000      41,533,066
 
2.625%, 12/31/25
United States     77,000,000      80,356,719
 
2.00%, 11/15/26
United States     62,500,000      62,805,176
 
q Index Linked, 0.125%, 7/15/24
United States     65,246,449      65,087,766
 
q Index Linked, 0.375%, 7/15/25
United States     45,352,793      45,829,993
 
Total U.S. Government and Agency Securities

(Cost $670,853,389)
      697,418,519
  |  79
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities 29.2%        
  Banks 0.4%        
r Commercial Mortgage Trust,        
 
s 2006-GG7, AJ, FRN, 5.821%, 7/10/38
United States      3,599,000       $3,335,036
 
2006-GG7, AM, FRN, 5.821%, 7/10/38
United States      1,028,974       1,035,981
g,r
CSMC, 2009-15R, 3A1, 144A, FRN, 4.978%, 3/26/36
United States        601,786         606,050
t
CWABS Inc. Asset-Backed Certificates, 2004-1, M1, FRN, 3.016%, (1-month USD LIBOR + 0.75%), 3/25/34
United States        784,311         790,474
g,t
DBCG Mortgage Trust, 2017-BBG, A, 144A, FRN, 3.025%, (1-month USD LIBOR + 0.70%), 6/15/34
United States      9,840,000       9,849,045
t
FNMA, 2005-122, FN, FRN, 2.616%, (1-month USD LIBOR + 0.35%), 1/25/36
United States 380,188   378,389
r
GE Capital Commercial Mortgage Corp. Trust, 2007-C1, AM, FRN, 5.606%, 12/10/49
United States 1,687,435   1,542,855
t
Merrill Lynch Mortgage Investors Trust, 2003-A, 1A, FRN, 3.006%, (1-month USD LIBOR + 0.74%), 3/25/28
United States 644,785   641,720
t
Morgan Stanley ABS Capital I Inc. Trust, 2005-WMC, M2, FRN, 3.001%, (1-month USD LIBOR + 0.735%), 1/25/35
United States 221,520   223,527
c
Weyerhaeuser Mortgage Co., 1984-A, 7.43%, 1/01/24
United States 10,542   10,542
          18,413,619
  Diversified Financials 28.8%        
t
American Home Mortgage Investment Trust, 2004-3, 4A, FRN, 4.044%, (6-month USD LIBOR + 1.50%), 10/25/34
United States 891,532   891,918
t
Ameriquest Mortgage Securities Inc. Asset-Backed Pass-Through Certificates, 2004-R4, M1, FRN, 3.091%, (1-month USD LIBOR + 0.825%), 6/25/34
United States 2,270,488   2,289,876
g,r AMMC CLO 15 Ltd.,        
 
2014-15A, ARR, 144A, FRN, 3.563%, 1/15/32
United States      3,000,000       2,994,990
 
2014-15A, BRR, 144A, FRN, 4.103%, 1/15/32
United States        922,984         918,461
g,t
AMMC CLO 21 Ltd., 2017-21A, C, 144A, FRN, 4.676%, (3-month USD LIBOR + 2.10%), 11/02/30
United States 1,000,000   971,880
g,t AMMC CLO XI Ltd.,        
 
2012-11A, BR2, 144A, FRN, 3.866%, (3-month USD LIBOR + 1.60%), 4/30/31
United States      5,050,000       4,955,969
 
2012-11A, CR2, 144A, FRN, 4.166%, (3-month USD LIBOR + 1.90%), 4/30/31
United States      3,750,000       3,600,675
 
2012-11A, DR2, 144A, FRN, 5.116%, (3-month USD LIBOR + 2.85%), 4/30/31
United States      1,750,000       1,645,280
g,t
Antares CLO Ltd., 2018-1A, B, 144A, FRN, 3.928%, (3-month USD LIBOR + 1.65%), 4/20/31
United States 12,900,000   12,530,157
g,t
Ares CLO Ltd., 2018-48A, D, 144A, FRN, 4.978%, (3-month USD LIBOR + 2.70%), 7/20/30
United States 2,000,000   1,899,680
g,r ARES LII CLO Ltd.,        
 
2019-52A, A2, 144A, FRN, 3.928%, 4/22/31
United States      1,382,114       1,379,364
 
2019-52A, B, 144A, FRN, 4.128%, 4/22/31
United States      6,000,000       6,007,500
 
2019-52A, C, 144A, FRN, 4.958%, 4/22/31
United States      2,500,000       2,497,450
 
2019-52A, D, 144A, FRN, 6.228%, 4/22/31
United States      3,194,444       3,186,170
  |  80
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
t
Argent Securities Inc. Asset-Backed Pass-Through Certificates, 2005-W2, A2C, FRN, 2.626%, (1-month USD LIBOR + 0.36%), 10/25/35
United States      1,823,344       $1,831,551
g,t
Atrium IX, 9A, AR, 144A, FRN, 3.761%, (3-month USD LIBOR + 1.24%), 5/28/30
United States      4,500,000       4,497,840
g,r
Atrium XII, 2012A, CR, 144A, FRN, 3.108%, 4/22/27
United States     11,600,000      11,582,484
g,t Atrium XIII,        
 
2013A, B, 144A, FRN, 3.759%, (3-month USD LIBOR + 1.50%), 11/21/30
United States      2,700,000       2,683,125
 
2013A, C, 144A, FRN, 4.059%, (3-month USD LIBOR + 1.80%), 11/21/30
United States      3,753,500       3,626,369
 
2013A, D, 144A, FRN, 4.959%, (3-month USD LIBOR + 2.70%), 11/21/30
United States      5,500,000       5,226,760
g,r
Atrium XIV LLC, 14A, A2A, 144A, FRN, 3.772%, 8/23/30
United States 7,400,000   7,335,398
g,r Atrium XV,        
 
15A, A1, 144A, FRN, 3.429%, 1/23/31
United States      3,150,000       3,143,133
 
15A, D, 144A, FRN, 5.259%, 1/23/31
United States        583,333         565,856
g,t Bain Capital Credit CLO,        
 
2018-1A, A1, 144A, FRN, 3.219%, (3-month USD LIBOR + 0.96%), 4/23/31
United States     12,000,000      11,871,360
 
2018-1A, A2, 144A, FRN, 3.409%, (3-month USD LIBOR + 1.15%), 4/23/31
United States      5,100,000       5,059,863
g,r
BCC Middle Market CLO LLC, 2018-1A, A2, 144A, FRN, 4.428%, 10/20/30
United States 5,100,000   5,040,075
t
Bear Stearns ALT-A Trust, 2004-13, A2, FRN, 3.146%, (1-month USD LIBOR + 0.88%), 11/25/34
United States 54,064   54,134
g,t
Bellemeade Re Ltd., 2018-1A, M1B, 144A, FRN, 3.866%, (1-month USD LIBOR + 1.60%), 4/25/28
Bermuda 9,850,000   9,879,944
g Betony CLO 2 Ltd.,        
 
r 2018-1A, A1, 144A, FRN, 3.346%, 4/30/31
United States     10,300,000      10,207,918
 
t 2018-1A, C, 144A, FRN, 5.166%, (3-month USD LIBOR + 2.90%), 4/30/31
United States      5,000,000       4,807,100
g,r BlueMountain CLO Ltd.,        
 
2012-2A, AR2, 144A, FRN, 3.57%, 11/20/28
United States      1,291,071       1,290,258
 
2014-2A, A2R2, 144A, FRN, 3.678%, 10/20/30
United States      5,775,775       5,679,666
 
2014-2A, CR2, 144A, FRN, 4.478%, 10/20/30
United States      3,600,000       3,503,232
 
2018-3A, B, 144A, FRN, 4.046%, 10/25/30
United States      2,000,000       1,997,120
 
2018-3A, C, 144A, FRN, 4.476%, 10/25/30
United States      1,071,430       1,050,226
g,r
BlueMountain CLO XXII Ltd., 2018-1A, B, 144A, FRN, 3.966%, 7/30/30
United States 272,725   272,231
g,t
BlueMountain Fuji U.S. CLO II Ltd., 2017-2A, B, 144A, FRN, 4.428%, (3-month USD LIBOR + 2.15%), 10/20/30
United States 4,010,000   3,962,361
g,t BlueMountain Fuji U.S. CLO III Ltd.,        
 
2017-3A, C, 144A, FRN, 4.003%, (3-month USD LIBOR + 1.70%), 1/15/30
United States      2,300,000       2,202,940
 
2017-3A, D, 144A, FRN, 4.703%, (3-month USD LIBOR + 2.40%), 1/15/30
United States      1,600,000       1,494,560
  |  81
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
g
BRAVO Residential Funding Trust, 2019-1, A1C, 144A, 3.50%, 3/25/58
United States     10,024,326      $10,168,989
g,r
Burnham Park CLO Ltd., 2016-1A, BR, 144A, FRN, 3.778%, 10/20/29
United States      1,488,189       1,471,983
g,r
Buttermilk Park CLO Ltd., 2018-1A, C, 144A, FRN, 4.403%, 10/15/31
United States      1,452,380       1,421,836
g,k,u
Carlyle Euro CLO DAC, 2019-2A, A1A, 144A, FRN, 8/15/32
Ireland     10,400,000 EUR    11,552,416
g,t Carlyle Global Market Strategies CLO Ltd.,        
 
2014-1A, A1R2, 144A, FRN, 3.273%, (3-month USD LIBOR + 0.97%), 4/17/31
United States        725,000         718,207
 
2014-1A, A2R2, 144A, FRN, 3.433%, (3-month USD LIBOR + 1.13%), 4/17/31
United States      6,300,000       6,131,412
 
2014-4RA, C, 144A, FRN, 5.203%, (3-month USD LIBOR + 2.90%), 7/15/30
United States      2,950,000       2,744,592
g,r
Carlyle GMS Finance MM CLO LLC, 2015-1A, A2R, 144A, FRN, 4.503%, 10/15/31
United States 10,000,000   9,917,400
g,t Carlyle U.S. CLO Ltd.,        
 
2017-1A, A1A, 144A, FRN, 3.578%, (3-month USD LIBOR + 1.30%), 4/20/31
United States     18,160,000      18,174,165
 
2017-2A, A1B, 144A, FRN, 3.498%, (3-month USD LIBOR + 1.22%), 7/20/31
United States     10,650,000      10,628,913
 
2017-2A, B, 144A, FRN, 4.678%, (3-month USD LIBOR + 2.40%), 7/20/31
United States      8,829,000       8,764,725
 
2017-3A, B, 144A, FRN, 4.628%, (3-month USD LIBOR + 2.35%), 7/20/29
United States      1,000,000         987,560
 
2017-4A, C, 144A, FRN, 5.103%, (3-month USD LIBOR + 2.80%), 1/15/30
United States        545,000         523,947
 
2017-5A, A2, 144A, FRN, 3.678%, (3-month USD LIBOR + 1.40%), 1/20/30
United States      2,000,000       1,953,160
 
2017-5A, B, 144A, FRN, 4.078%, (3-month USD LIBOR + 1.80%), 1/20/30
United States      7,000,000       6,743,030
g,t Catamaran CLO Ltd.,        
 
2014-2A, BR, 144A, FRN, 5.25%, (3-month USD LIBOR + 2.95%), 10/18/26
United States      6,401,000       6,403,496
 
2015-1A, C2R, 144A, FRN, 4.228%, (3-month USD LIBOR + 1.95%), 4/22/27
United States      7,600,000       7,505,760
g,r CIM Trust,        
 
2018-INV1, A4, 144A, FRN, 4.00%, 8/25/48
United States     11,601,848      12,042,319
 
2019-INV1, A1, 144A, FRN, 4.00%, 2/25/49
United States     14,029,252      14,358,072
 
2019-INV2, A3, 144A, FRN, 4.00%, 5/25/49
United States     22,895,743      23,728,269
g,r
Citigroup Mortgage Loan Trust, 2013-A, A, 144A, FRN, 3.00%, 5/25/42
United States 777,551   769,619
g,r
Cole Park CLO Ltd., 2015-1A, BR, 144A, FRN, 3.878%, 10/20/28
United States 2,571,428   2,554,019
g,r
Columbia Cent CLO 27 Ltd., 2018-27A, A2A, 144A, FRN, 3.876%, 10/25/28
United States 769,230   763,422
g,r Consumer Loan Underlying Bond CLUB Certificate Issuer Trust I,        
 
2018-14, PT, 144A, FRN, 9.811%, 9/16/41
United States      4,941,772       4,915,414
 
2018-29, PT, 144A, FRN, 28.216%, 12/15/43
United States      2,045,142       1,722,043
 
2019-26, PT, 144A, FRN, 21.457%, 8/15/44
United States      7,896,683       7,671,716
  |  82
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
g,r Consumer Loan Underlying Bond CLUB Certificate Issuer Trust I, (continued)        
 
2019-S1, PT, 144A, FRN, 16.69%, 4/15/44
United States      6,850,611       $6,331,154
 
2019-S2, PT, 144A, FRN, 15.136%, 5/16/44
United States      5,120,365       4,812,560
 
2019-S3, PT, 144A, FRN, 13.369%, 6/15/44
United States      5,968,022       5,615,017
 
2019-S4, PT, 144A, FRN, 14.291%, 8/15/44
United States      6,707,868       6,269,192
g,t
Cook Park CLO Ltd., 2018-1A, A2, 144A, FRN, 3.423%, (3-month USD LIBOR + 1.12%), 4/17/30
United States      6,000,000       5,949,360
 
Credit Suisse First Boston Mortgage Securities Corp., 2004-6, 3A1, 5.00%, 9/25/19
United States 121,809   110,096
  Dryden 41 Senior Loan Fund,        
 
g,t 2015-41A, AR, 144A, FRN, 3.273%, (3-month USD LIBOR + 0.97%), 4/15/31
United States     22,025,000      21,768,409
 
h,r 2015-41X, AR, Reg S, FRN, 3.273%, 4/15/31
United States      4,700,000       4,645,245
g,t
Dryden 42 Senior Loan Fund, 2016-42A, DR, 144A, FRN, 5.233%, (3-month USD LIBOR + 2.93%), 7/15/30
United States 800,000   763,072
g,r
Dryden 45 Senior Loan Fund, 2016-45A, CR, 144A, FRN, 4.503%, 10/15/30
United States 1,250,000   1,229,688
g,t Dryden 49 Senior Loan Fund,        
 
2017-49A, A, 144A, FRN, 3.51%, (3-month USD LIBOR + 1.21%), 7/18/30
United States      7,030,000       7,028,172
 
2017-49A, C, 144A, FRN, 4.65%, (3-month USD LIBOR + 2.35%), 7/18/30
United States      5,320,000       5,283,026
g,t Dryden 50 Senior Loan Fund,        
 
2017-50A, A1, 144A, FRN, 3.523%, (3-month USD LIBOR + 1.22%), 7/15/30
United States      5,660,000       5,649,303
 
2017-50A, C, 144A, FRN, 4.553%, (3-month USD LIBOR + 2.25%), 7/15/30
United States      2,600,000       2,600,754
g,t Dryden 55 CLO Ltd.,        
 
2018-55A, A1, 144A, FRN, 3.323%, (3-month USD LIBOR + 1.02%), 4/15/31
United States     23,362,000      23,162,722
 
2018-55A, D, 144A, FRN, 5.153%, (3-month USD LIBOR + 2.85%), 4/15/31
United States      2,000,000       1,901,600
g,t Dryden 64 CLO Ltd.,        
 
2018-64A, A, 144A, FRN, 3.27%, (3-month USD LIBOR + 0.97%), 4/18/31
United States      1,200,000       1,189,812
 
2018-64A, D, 144A, FRN, 4.95%, (3-month USD LIBOR + 2.65%), 4/18/31
United States      4,000,000       3,825,160
  |  83
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
g,r
Dryden 70 CLO Ltd., 2018-70A, B, 144A, FRN, 4.022%, 1/16/32
United States      1,121,158       $1,109,722
g,r
Eleven Madison Trust 2015-11MD Mortgage Trust, 2015-11MD, A, 144A, FRN, 3.673%, 9/10/35
United States      3,255,000       3,450,071
g,t
Ellington CLO III Ltd., 2018-3A, A1, 144A, FRN, 3.928%, (3-month USD LIBOR + 1.65%), 7/20/30
United States      5,400,000       5,375,700
  FHLMC Structured Agency Credit Risk Debt Notes,        
 
t 2014-DN1, M2, FRN, 4.466%, (1-month USD LIBOR + 2.20%), 2/25/24
United States      1,754,052       1,783,952
 
t 2014-DN3, M3, FRN, 6.266%, (1-month USD LIBOR + 4.00%), 8/25/24
United States     15,161,527      16,226,740
 
t 2014-DN4, M3, FRN, 6.816%, (1-month USD LIBOR + 4.55%), 10/25/24
United States      8,764,476       9,414,804
 
t 2014-HQ1, M3, FRN, 6.366%, (1-month USD LIBOR + 4.10%), 8/25/24
United States      2,846,394       3,046,447
 
t 2015-DN1, M3, FRN, 6.416%, (1-month USD LIBOR + 4.15%), 1/25/25
United States     10,726,382      11,219,251
 
t 2015-DNA2, M3, FRN, 6.166%, (1-month USD LIBOR + 3.90%), 12/25/27
United States     25,057,000      26,321,742
 
t 2015-DNA3, M2, FRN, 5.116%, (1-month USD LIBOR + 2.85%), 4/25/28
United States     10,388,647      10,557,023
 
t 2015-DNA3, M3, FRN, 6.966%, (1-month USD LIBOR + 4.70%), 4/25/28
United States      3,330,000       3,717,709
 
t 2015-HQ1, M3, FRN, 6.066%, (1-month USD LIBOR + 3.80%), 3/25/25
United States     24,924,665      25,825,076
 
t 2015-HQ2, M3, FRN, 5.516%, (1-month USD LIBOR + 3.25%), 5/25/25
United States      4,580,000       4,897,636
 
t 2015-HQA1, M2, FRN, 4.916%, (1-month USD LIBOR + 2.65%), 3/25/28
United States      7,367,617       7,422,525
 
t 2015-HQA2, M2, FRN, 5.066%, (1-month USD LIBOR + 2.80%), 5/25/28
United States      1,197,768       1,213,185
 
t 2016-DNA1, M2, FRN, 5.304%, (1-month USD LIBOR + 2.90%), 7/25/28
United States      3,303,650       3,336,925
 
t 2016-DNA1, M3, FRN, 7.954%, (1-month USD LIBOR + 5.55%), 7/25/28
United States     29,600,000      33,330,908
 
t 2016-DNA2, M2, FRN, 4.466%, (1-month USD LIBOR + 2.20%), 10/25/28
United States      5,364,221       5,377,035
 
t 2016-DNA2, M3, FRN, 6.916%, (1-month USD LIBOR + 4.65%), 10/25/28
United States     19,985,000      21,622,833
 
t 2016-HQA1, M2, FRN, 5.016%, (1-month USD LIBOR + 2.75%), 9/25/28
United States      5,511,493       5,558,753
 
t 2016-HQA2, M2, FRN, 4.516%, (1-month USD LIBOR + 2.25%), 11/25/28
United States     11,100,735      11,204,784
 
t 2016-HQA2, M3, FRN, 7.416%, (1-month USD LIBOR + 5.15%), 11/25/28
United States     11,120,000      12,320,272
 
t 2016-HQA3, M2, FRN, 3.616%, (1-month USD LIBOR + 1.35%), 3/25/29
United States      1,969,997       1,979,987
 
r 2017-DNA1, M2, FRN, 5.516%, 7/25/29
United States      5,450,000       5,766,922
 
t 2017-DNA3, M2, FRN, 4.766%, (1-month USD LIBOR + 2.50%), 3/25/30
United States     13,500,000      13,826,373
  |  84
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
g,t Flagship CLO VIII Ltd.,        
 
2014-8A, ARR, 144A, FRN, 3.172%, (3-month USD LIBOR + 0.85%), 1/16/26
United States      4,721,200       $4,713,929
 
2014-8A, DR, 144A, FRN, 5.372%, (3-month USD LIBOR + 3.05%), 1/16/26
United States      5,500,000       5,315,365
  FNMA Connecticut Avenue Securities,        
 
t 2013-C01, M2, FRN, 7.516%, (1-month USD LIBOR + 5.25%), 10/25/23
United States      5,601,381       6,235,975
 
t 2014-C02, 1M2, FRN, 4.866%, (1-month USD LIBOR + 2.60%), 5/25/24
United States     23,018,723      24,015,594
 
t 2014-C02, 2M2, FRN, 4.866%, (1-month USD LIBOR + 2.60%), 5/25/24
United States      8,384,662       8,720,342
 
t 2014-C03, 1M2, FRN, 5.266%, (1-month USD LIBOR + 3.00%), 7/25/24
United States     27,617,658      29,229,932
 
t 2014-C03, 2M2, FRN, 5.166%, (1-month USD LIBOR + 2.90%), 7/25/24
United States      3,050,784       3,201,892
 
t 2014-C04, 1M1, FRN, 7.166%, (1-month USD LIBOR + 4.90%), 11/25/24
United States     21,218,859      23,523,010
 
t 2014-C04, 2M2, FRN, 7.266%, (1-month USD LIBOR + 5.00%), 11/25/24
United States      3,809,604       4,151,544
 
t 2015-C01, 1M2, FRN, 6.566%, (1-month USD LIBOR + 4.30%), 2/25/25
United States      3,144,105       3,380,374
 
t 2015-C01, 2M2, FRN, 6.816%, (1-month USD LIBOR + 4.55%), 2/25/25
United States     12,887,071      13,533,775
 
t 2015-C02, 1M2, FRN, 6.266%, (1-month USD LIBOR + 4.00%), 5/25/25
United States     14,974,290      15,922,793
 
t 2015-C02, 2M2, FRN, 6.266%, (1-month USD LIBOR + 4.00%), 5/25/25
United States      4,235,557       4,417,378
 
t 2015-C03, 1M2, FRN, 7.266%, (1-month USD LIBOR + 5.00%), 7/25/25
United States     10,577,150      11,544,849
 
t 2015-C03, 2M2, FRN, 7.266%, (1-month USD LIBOR + 5.00%), 7/25/25
United States      4,355,870       4,647,906
 
r 2016-C02, 1M2, FRN, 8.266%, 9/25/28
United States     20,523,575      22,644,042
 
r 2016-C04, 1M2, FRN, 6.516%, 1/25/29
United States     11,100,000      11,852,132
 
t 2017-C01, 1B1, FRN, 8.016%, (1-month USD LIBOR + 5.75%), 7/25/29
United States      5,375,000       6,428,681
 
t 2017-C01, 1M2, FRN, 5.816%, (1-month USD LIBOR + 3.55%), 7/25/29
United States      7,760,000       8,202,956
 
r 2017-C03, 1M2, FRN, 5.266%, 10/25/29
United States      1,525,000       1,595,696
g,r
FREMF Mortgage Trust, 2018-K72, B, 144A, FRN, 3.992%, 12/25/50
United States 17,900,000   18,705,668
g,r
Galaxy XXVI CLO Ltd., 2018-26A, D, 144A, FRN, 5.573%, 11/22/31
United States 586,957   570,499
g,t Galaxy XXVII CLO Ltd.,        
 
2018-27A, A, 144A, FRN, 3.545%, (3-month USD LIBOR + 1.02%), 5/16/31
United States      1,000,000         988,310
 
2018-27A, C, 144A, FRN, 4.325%, (3-month USD LIBOR + 1.80%), 5/16/31
United States      4,000,000       3,854,280
 
2018-27A, C, 144A, FRN, 5.275%, (3-month USD LIBOR + 2.75%), 5/16/31
United States        750,000         700,628
  |  85
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
g,t Gilbert Park CLO Ltd.,        
 
2017-1A, B, 144A, FRN, 3.903%, (3-month USD LIBOR + 1.60%), 10/15/30
United States      1,000,000         $991,980
 
2017-1A, D, 144A, FRN, 5.253%, (3-month USD LIBOR + 2.95%), 10/15/30
United States      2,600,000       2,524,288
t
GSAA Home Equity Trust, 2005-5, M3, FRN, 3.211%, (1-month USD LIBOR + 0.945%), 2/25/35
United States      1,287,097       1,310,281
g,t
Halcyon Loan Advisors Funding Ltd., 2018-1A, A2, 144A, FRN, 4.078%, (3-month USD LIBOR + 1.80%), 7/21/31
United States      8,500,000       8,308,750
g,r
Harbor Park CLO Ltd., 1A, A2, 144A, FRN, 3.678%, 1/20/31
United States        657,895         652,836
g,t
HayFin Kingsland IX Ltd., 2013-6A, BR, 144A, FRN, 4.056%, (3-month USD LIBOR + 1.80%), 4/28/31
United States 14,500,000   14,284,385
t
Home Equity Mortgage Trust, 2004-4, M3, FRN, 3.241%, (1-month USD LIBOR + 0.975%), 12/25/34
United States 165,126   165,532
g,r HPS Loan Management Ltd.,        
 
2013A-18, A2, 144A, FRN, 3.753%, 10/15/30
United States      8,600,000       8,526,384
 
2013A-18, C, 144A, FRN, 4.453%, 10/15/30
United States      3,000,000       2,947,590
g,t
Invitation Homes Trust, 2017-SFR2, A, 144A, FRN, 3.164%, (1-month USD LIBOR + 0.85%), 12/17/36
United States 9,339,694   9,334,216
g,t LCM 26 Ltd.,        
 
26A, B, 144A, FRN, 3.678%, (3-month USD LIBOR + 1.40%), 1/20/31
United States      2,000,000       1,956,220
 
26A, C, 144A, FRN, 4.078%, (3-month USD LIBOR + 1.80%), 1/20/31
United States      9,600,000       9,273,216
 
26A, D, 144A, FRN, 4.778%, (3-month USD LIBOR + 2.50%), 1/20/31
United States        600,000         557,346
g,r
LCM XVI LP, 2016A, A2R, 144A, FRN, 3.483%, 10/15/31
United States 1,083,333   1,080,029
g,t
LCM XVIII LP, 2018A, CR, 144A, FRN, 4.128%, (3-month USD LIBOR + 1.85%), 4/20/31
United States 2,000,000   1,921,160
g,r LCM XXII Ltd.,        
 
22A, A2R, 144A, FRN, 3.728%, 10/20/28
United States      1,000,000         983,060
 
22A, CR, 144A, FRN, 5.078%, 10/20/28
United States      1,000,000         967,500
g,t
LCM XXIII Ltd., 23A, A2, 144A, FRN, 4.128%, (3-month USD LIBOR + 1.85%), 10/20/29
United States 2,000,000   2,000,740
g,t
LCM XXV Ltd., 25A, C2, 144A, FRN, 4.578%, (3-month USD LIBOR + 2.30%), 7/20/30
United States 443,666   442,566
g,t Long Point Park CLO Ltd.,        
 
2017-1A, A2, 144A, FRN, 3.678%, (3-month USD LIBOR + 1.375%), 1/17/30
United States      5,800,000       5,674,894
 
2017-1A, B, 144A, FRN, 4.003%, (3-month USD LIBOR + 1.70%), 1/17/30
United States      2,700,000       2,586,330
 
2017-1A, C, 144A, FRN, 4.703%, (3-month USD LIBOR + 2.40%), 1/17/30
United States      3,100,000       2,882,938
  |  86
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
g,r
Madison Park Euro Funding XIV DAC, 2014A, A1N, 144A, FRN, 1.12%, 7/15/32
Ireland      7,300,000 EUR     $8,099,848
g,t Madison Park Funding XXIII Ltd.,        
 
2017-23A, B, 144A, FRN, 3.956%, (3-month USD LIBOR + 1.70%), 7/27/30
United States      3,840,000       3,833,395
 
2017-23A, C, 144A, FRN, 4.606%, (3-month USD LIBOR + 2.35%), 7/27/30
United States      1,000,000         998,210
g,r Madison Park Funding XXIX Ltd.,        
 
2018-29A, A2, 144A, FRN, 3.75%, 10/18/30
United States      1,727,273       1,711,710
 
2018-29A, C, 144A, FRN, 4.50%, 10/18/30
United States      1,072,581       1,059,356
g,t
Madison Park Funding XXVII Ltd., 2018-27A, A1B, 144A, FRN, 3.408%, (3-month USD LIBOR + 1.13%), 4/20/30
United States 6,837,000   6,739,299
g,t
Madison Park Funding XXVIII Ltd., 2018-28A, D, 144A, FRN, 5.003%, (3-month USD LIBOR + 2.70%), 7/15/30
United States 2,000,000   1,903,060
g,r Madison Park Funding XXXI Ltd.,        
 
2018-31A, B, 144A, FRN, 3.959%, 1/23/31
United States      1,500,000       1,497,675
 
2018-31A, C, 144A, FRN, 4.409%, 1/23/31
United States        650,000         637,904
g,r
Magnetite Ltd., 2015-14RA, A1, 144A, FRN, 3.42%, 10/18/31
United States 15,000,000   14,931,600
g,r Mill City Mortgage Loan Trust,        
 
2018-1, A1, 144A, FRN, 3.25%, 5/25/62
United States      2,304,412       2,339,140
 
2018-4, A1B, 144A, FRN, 3.50%, 4/25/66
United States     14,274,000      14,632,611
g,r
Neuberger Berman CLO Ltd., 2016-22A, A2R, 144A, FRN, 3.703%, 10/17/30
United States 8,300,000   8,232,521
g,r
Neuberger Berman CLO XVIII Ltd., 2014-18A, A1BR, 144A, FRN, 3.678%, 10/21/30
United States 1,700,000   1,675,588
g,t Neuberger Berman CLO XVI-S Ltd.,        
 
2017-16SA, C, 144A, FRN, 3.903%, (3-month USD LIBOR + 1.60%), 1/15/28
United States      2,350,000       2,280,417
 
2017-16SA, D, 144A, FRN, 4.803%, (3-month USD LIBOR + 2.50%), 1/15/28
United States        650,000         637,065
g,r
Neuberger Berman CLO XXII Ltd., 2016-22A, CR, 144A, FRN, 4.503%, 10/17/30
United States 3,194,445   3,131,227
g Neuberger Berman Loan Advisers CLO Ltd.,        
 
t 2017-26A, B, 144A, FRN, 3.80%, (3-month USD LIBOR + 1.50%), 10/18/30
United States      5,772,370       5,701,601
 
t 2018-27A, C, 144A, FRN, 4.003%, (3-month USD LIBOR + 1.70%), 1/15/30
United States      4,900,000       4,704,147
 
r 2019-32A, C, 144A, FRN, 4.953%, 1/19/32
United States      2,000,000       1,999,440
 
r 2019-32A, D, 144A, FRN, 6.153%, 1/19/32
United States      1,973,685       1,972,698
g,t Newark BSL CLO 2 Ltd.,        
 
2017-1A, B, 144A, FRN, 4.626%, (3-month USD LIBOR + 2.35%), 7/25/30
United States      3,069,687       3,070,761
 
2017-1A, C, 144A, FRN, 5.926%, (3-month USD LIBOR + 3.65%), 7/25/30
United States      1,000,000         996,100
  |  87
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
g,t
NZCG Funding Ltd., 2015-1A, A2R, 144A, FRN, 4.071%, (3-month USD LIBOR + 1.55%), 2/26/31
United States     11,200,000      $11,034,800
g,t
Octagon Investment Partners 18-R Ltd., 2018-18A, C, 144A, FRN, 5.022%, (3-month USD LIBOR + 2.70%), 4/16/31
United States      9,050,000       8,500,484
g,r
Octagon Investment Partners 24 Ltd., 2015-1A, BS, 144A, FRN, 4.178%, 4/21/31
United States      6,482,500       6,476,277
g,r
Octagon Investment Partners 28 Ltd., 2016-1A, A2R, 144A, FRN, 3.733%, 10/24/30
United States      1,000,000         988,150
g,t
Octagon Investment Partners 31 LLC, 2017-1A, C, 144A, FRN, 4.678%, (3-month USD LIBOR + 2.40%), 7/20/30
United States      1,707,068       1,706,624
g,t Octagon Investment Partners 33 Ltd.,        
 
2017-1A, A2, 144A, FRN, 3.778%, (3-month USD LIBOR + 1.50%), 1/20/31
United States        400,000         394,592
 
2017-1A, C, 144A, FRN, 5.028%, (3-month USD LIBOR + 2.75%), 1/20/31
United States      2,800,000       2,680,720
g,t Octagon Investment Partners 35 Ltd.,        
 
2018-1A, A1B, 144A, FRN, 3.378%, (3-month USD LIBOR + 1.10%), 1/20/31
United States      3,325,000       3,249,523
 
2018-1A, B, 144A, FRN, 3.978%, (3-month USD LIBOR + 1.70%), 1/20/31
United States        450,000         431,361
g,t Octagon Investment Partners 36 Ltd.,        
 
2018-1A, A1, 144A, FRN, 3.273%, (3-month USD LIBOR + 0.97%), 4/15/31
United States     18,000,000      17,859,060
 
2018-1A, A2, 144A, FRN, 3.503%, (3-month USD LIBOR + 1.20%), 4/15/31
United States      8,500,000       8,289,540
g,t
Octagon Investment Partners 37 Ltd., 2018-2A, C, 144A, FRN, 5.126%, (3-month USD LIBOR + 2.85%), 7/25/30
United States 2,000,000   1,918,900
g,r
Octagon Investment Partners 38 Ltd., 2018-1A, C, 144A, FRN, 5.228%, 7/20/30
United States 4,000,000   3,865,240
g,t
Octagon Investment Partners XVII Ltd., 2013-1A, CR2, 144A, FRN, 3.976%, (3-month USD LIBOR + 1.70%), 1/25/31
United States 5,250,000   5,020,313
g,t Octagon Investment Partners XXIII Ltd.,        
 
2015-1A, BR, 144A, FRN, 3.503%, (3-month USD LIBOR + 1.20%), 7/15/27
United States      1,170,000       1,152,485
 
2015-1A, CR, 144A, FRN, 4.153%, (3-month USD LIBOR + 1.85%), 7/15/27
United States      2,700,000       2,677,725
 
2015-1A, DR, 144A, FRN, 4.853%, (3-month USD LIBOR + 2.55%), 7/15/27
United States      1,000,000         990,590
g,r
Octagon Loan Funding Ltd., 2014-1A, ARR, 144A, FRN, 3.70%, 11/18/31
United States 1,000,000   997,120
g,t
Race Point IX CLO Ltd., 2015-9A, A1AR, 144A, FRN, 3.513%, (3-month USD LIBOR + 1.21%), 10/15/30
United States 5,175,000   5,176,087
g,r
Race Point X CLO Ltd., 2016-10A, B1R, 144A, FRN, 3.926%, 7/25/31
United States 3,600,000   3,565,188
g,t
Radnor RE Ltd., 2018-1, M1, 144A, FRN, 3.666%, (1-month USD LIBOR + 1.40%), 3/25/28
United States 5,546,274   5,561,199
g,r
Strata CLO I Ltd., 2018-1A, B, 144A, FRN, 4.503%, 1/15/31
United States 11,000,000   10,839,840
  |  88
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
g,t TCI-Flatiron CLO Ltd.,        
 
2017-1A, B, 144A, FRN, 4.085%, (3-month USD LIBOR + 1.56%), 11/18/30
United States      3,500,000       $3,436,650
 
2017-1A, C, 144A, FRN, 4.375%, (3-month USD LIBOR + 1.85%), 11/18/30
United States      2,800,000       2,700,796
 
2017-1A, D, 144A, FRN, 5.275%, (3-month USD LIBOR + 2.75%), 11/18/30
United States     11,800,000      11,197,020
g,r Towd Point Mortgage Trust,        
 
2017-1, A1, 144A, FRN, 2.75%, 10/25/56
United States      8,521,327       8,576,671
 
2017-1, A2, 144A, FRN, 3.50%, 10/25/56
United States      8,862,000       9,122,117
 
2017-2, A1, 144A, FRN, 2.75%, 4/25/57
United States      3,939,943       3,954,254
 
2017-4, A1, 144A, FRN, 2.75%, 6/25/57
United States      6,641,443       6,659,632
 
2019-1, A1, 144A, FRN, 3.75%, 3/25/58
United States     14,174,515      14,754,247
g,r
Upgrade Master Pass-Thru Trust, 2019-PT1, A, 144A, FRN, 12.101%, 6/15/25
United States 3,675,267   3,698,671
g Voya CLO Ltd.,        
 
t 2013-2A, CR, 144A, FRN, 5.026%, (3-month USD LIBOR + 2.75%), 4/25/31
United States      1,650,000       1,555,026
 
t 2014-1A, BR2, 144A, FRN, 4.20%, (3-month USD LIBOR + 1.90%), 4/18/31
United States      1,000,000         967,870
 
t 2014-1A, CR2, 144A, FRN, 5.10%, (3-month USD LIBOR + 2.80%), 4/18/31
United States      4,000,000       3,800,120
 
r 2015-2A, AR, 144A, FRN, 3.229%, 7/23/27
United States      4,840,000       4,835,112
 
r 2016-3A, CR, 144A, FRN, 5.55%, 10/18/31
United States      2,547,170       2,477,199
 
t 2017-3A, B, 144A, FRN, 4.628%, (3-month USD LIBOR + 2.35%), 7/20/30
United States      3,091,704       3,072,659
 
r 2018-2A, A1, 144A, FRN, 3.303%, 7/15/31
United States      6,122,582       6,077,152
 
t 2018-2A, A2, 144A, FRN, 3.553%, (3-month USD LIBOR + 1.25%), 7/15/31
United States      1,500,000       1,472,205
 
t 2018-2A, C1, 144A, FRN, 4.153%, (3-month USD LIBOR + 1.85%), 7/15/31
United States        700,000         675,878
 
t 2018-2A, D, 144A, FRN, 5.053%, (3-month USD LIBOR + 2.75%), 7/15/31
United States      2,000,000       1,905,080
 
r 2018-4A, B, 144A, FRN, 4.153%, 1/15/32
United States      1,896,104       1,899,555
g,t
Webster Park CLO Ltd., 2015-1A, BR, 144A, FRN, 4.078%, (3-month USD LIBOR + 1.80%), 7/20/30
United States 2,000,000   1,926,260
  Wells Fargo Mortgage Backed Securities Trust,        
 
r 2004-W, A9, FRN, 4.863%, 11/25/34
United States        635,969         663,138
 
2007-3, 3A1, 5.50%, 4/25/22
United States         61,957          63,195
  |  89
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)        
  Diversified Financials (continued)        
g,t West CLO Ltd.,        
 
2014-1A, A2R, 144A, FRN, 3.65%, (3-month USD LIBOR + 1.35%), 7/18/26
United States      2,860,000       $2,852,364
 
2014-1A, BR, 144A, FRN, 4.15%, (3-month USD LIBOR + 1.85%), 7/18/26
United States      5,060,000       5,035,864
          1,300,021,792
 
Total Asset-Backed Securities and Commercial Mortgage-Backed Securities (Cost $1,333,612,933)
      1,318,435,411
  Mortgage-Backed Securities 22.1%        
v Federal Home Loan Mortgage Corp. (FHLMC) Adjustable Rate 0.0%†        
 
FHLMC, 2.345%, (11th District COF +/- MBS Margin), 11/01/27
United States 1,184,169   1,178,732
  Federal Home Loan Mortgage Corp. (FHLMC) Fixed Rate 3.9%        
 
FHLMC 30 Year, 6.00%, 6/01/37
United States 29,055   33,025
 
FHLMC 30 Year, 6.50%, 8/01/25 - 11/01/31
United States 81,776   90,815
 
FHLMC 30 Year, 7.00%, 7/01/31
United States 5,714   5,946
 
FHLMC 30 Year, 8.00%, 2/01/30
United States 16,730   19,270
 
FHLMC 30 Year, 8.50%, 10/01/24
United States 3,431   3,721
 
FHLMC Gold 15 Year, 5.50%, 11/01/22
United States 48,992   49,344
 
FHLMC Gold 15 Year, 6.00%, 10/01/21 - 9/01/22
United States 137,534   140,741
 
FHLMC Gold 30 Year, 3.50%, 12/01/47
United States 51,964,492   53,604,827
 
FHLMC Gold 30 Year, 3.50%, 4/01/48
United States 81,642,935   84,137,021
 
FHLMC Gold 30 Year, 4.00%, 5/01/48
United States 22,488,068   23,421,478
 
FHLMC Gold 30 Year, 4.50%, 3/01/39
United States 1,445,171   1,559,016
 
FHLMC Gold 30 Year, 5.00%, 8/01/33 - 2/01/39
United States 8,798,751   9,595,847
 
FHLMC Gold 30 Year, 5.50%, 1/01/35 - 12/01/37
United States 677,999   751,019
 
FHLMC Gold 30 Year, 6.00%, 5/01/33 - 4/01/38
United States 935,919   1,062,503
 
FHLMC Gold 30 Year, 6.50%, 4/01/28 - 3/01/39
United States 707,620   808,508
 
FHLMC Gold 30 Year, 7.00%, 1/01/28 - 7/01/32
United States 53,564   60,741
 
FHLMC Gold 30 Year, 7.50%, 3/01/32
United States 12,875   15,040
 
FHLMC Gold 30 Year, 8.50%, 8/01/30
United States 1,231   1,414
 
FHLMC Gold 30 Year, 9.00%, 1/01/22
United States 61   61
          175,360,337
v Federal National Mortgage Association (FNMA) Adjustable Rate 0.1%        
 
FNMA, 4.023%, (US 3 Year CMT T-Note +/- MBS Margin), 12/01/24
United States 7,997   8,242
 
FNMA, 4.082%, (6-month USD LIBOR +/- MBS Margin), 10/01/32
United States 141,497   144,110
 
FNMA, 2.338% - 4.108%, (11th District COF +/- MBS Margin), 12/01/27 - 9/01/34
United States 2,463,279   2,507,795
 
FNMA, 4.381% - 4.768%, (12-month USD LIBOR +/- MBS Margin), 2/01/34 - 3/01/37
United States 934,667   969,698
  |  90
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Mortgage-Backed Securities (continued)        
v Federal National Mortgage Association (FNMA) Adjustable Rate (continued)        
 
FNMA, 4.484% - 5.32%, (US 1 Year CMT T-Note +/- MBS Margin), 5/01/25 - 10/01/36
United States        218,597         $228,509
          3,858,354
  Federal National Mortgage Association (FNMA) Fixed Rate 16.2%        
 
FNMA 15 Year, 5.50%, 12/01/22 - 12/01/23
United States         82,279          84,579
 
FNMA 15 Year, 6.00%, 9/01/22
United States         37,808          38,318
 
FNMA 30 Year, 3.00%, 9/01/48
United States     75,870,617      77,030,162
 
FNMA 30 Year, 3.00%, 11/01/48
United States 92,380,099   93,765,607
 
FNMA 30 Year, 3.50%, 11/01/47
United States 88,851,435   91,653,955
 
FNMA 30 Year, 3.50%, 4/01/48
United States 48,802,200   50,309,114
w
FNMA 30 Year, 3.50%, 7/01/49
United States 54,800,000   56,116,484
 
FNMA 30 Year, 4.00%, 10/01/47
United States 60,564,177   63,480,382
w
FNMA 30 Year, 4.00%, 8/01/49
United States 139,625,000   144,533,690
w
FNMA 30 Year, 4.50%, 7/01/49
United States 132,200,000   138,570,665
 
FNMA 30 Year, 5.00%, 6/01/36 - 5/01/39
United States 1,584,347   1,724,890
 
FNMA 30 Year, 5.50%, 6/01/33 - 8/01/37
United States 5,176,036   5,722,214
 
FNMA 30 Year, 6.00%, 9/01/32 - 9/01/38
United States 6,179,906   6,999,234
 
FNMA 30 Year, 6.50%, 8/01/28 - 5/01/37
United States 177,793   199,490
 
FNMA 30 Year, 7.00%, 11/01/25
United States 2,927   2,928
 
FNMA 30 Year, 7.50%, 1/01/30
United States 9,766   11,427
 
FNMA 30 Year, 8.50%, 4/01/30 - 5/01/32
United States 56,103   67,117
 
FNMA 30 Year, 9.00%, 11/01/26 - 5/01/27
United States 54,671   55,733
          730,365,989
v Government National Mortgage Association (GNMA) Adjustable Rate 0.0%†        
 
GNMA, 4.00% - 4.125%, (US 1 Year CMT T-Note +/- MBS Margin), 1/20/23 - 10/20/26
United States 27,464   28,158
  Government National Mortgage Association (GNMA) Fixed Rate 1.9%        
 
GNMA I SF 30 Year, 6.00%, 1/15/39
United States 146,344   167,878
 
GNMA I SF 30 Year, 6.50%, 10/15/31 - 7/15/38
United States 20,735   22,842
 
GNMA I SF 30 Year, 7.00%, 10/15/27 - 6/15/31
United States 26,598   29,918
 
GNMA I SF 30 Year, 7.50%, 2/15/22 - 5/15/26
United States 33,584   34,435
 
GNMA I SF 30 Year, 9.00%, 9/15/25
United States 43   43
 
GNMA II SF 30 Year, 4.50%, 5/20/49
United States 81,915,068   85,778,763
 
GNMA II SF 30 Year, 6.00%, 5/20/31
United States 3,439   3,938
 
GNMA II SF 30 Year, 6.50%, 3/20/28 - 7/20/38
United States 331,220   385,432
 
GNMA II SF 30 Year, 7.50%, 8/20/30 - 1/20/33
United States 36,526   41,557
          86,464,806
 
Total Mortgage-Backed Securities (Cost $982,889,132)
      997,256,376
  |  91
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
    Country Principal
Amount* 		  Value
  Municipal Bonds 1.9%        
 
California State GO, Various Purpose, 6.00%, 11/01/39
United States      2,385,000       $2,414,264
 
Chicago Transit Authority Sales and Transfer Tax Receipts Revenue, Pension Funding, Series A, 6.899%, 12/01/40
United States        800,000       1,089,440
 
Industry Public Facilities Authority Tax Allocation Revenue, Transportation District, Industrial Redevelopment Project No. 2, Refunding, Series B, AGMC Insured, 4.294%, 1/01/23
United States     10,000,000      10,287,500
 
Minnesota State GO, Various Purpose, Refunding, Series F, 4.00%, 10/01/24
United States      5,760,000       6,420,154
 
Orlando Health Obligated Group, 3.777%, 10/01/28
United States      2,810,000       2,991,925
  Port Authority of New York and New Jersey Revenue,        
 
Consolidated, One Hundred Ninety-First Series, 4.823%, 6/01/45
United States      4,570,000       5,069,912
 
Consolidated, Refunding, One Hundred Ninety-Second Series, 4.81%, 10/15/65
United States     15,000,000      18,869,700
 
Providence St. Joseph Health Obligated Group, 2.746%, 10/01/26
United States 8,875,000   8,847,998
j
Puerto Rico Electric Power Authority Power Revenue, Series A-RSA-1, 6.75%, 7/01/36
United States 12,000,000   9,435,000
 
San Jose RDA Successor Agency Tax Allocation, Senior, Refunding, Series A-T, 3.226%, 8/01/27
United States 6,150,000   6,528,102
 
University of California Revenue, Limited Project, Refunding, Series J, 4.131%, 5/15/45
United States 10,750,000   11,678,692
 
Total Municipal Bonds (Cost $78,973,346)
      83,632,687
      Shares/Units    
  Escrows and Litigation Trusts 0.0%        
a,c
Motors Liquidation Co., Escrow Account, cvt. pfd., C
United States 43,500    —
a,c
NewPage Corp., Litigation Trust
United States 2,500,000    —
a,c,d
Remington Outdoor Co. Inc., Litigation Units
United States 4,897    —
 
Total Escrows and Litigation Trusts (Cost $2,307)
      —
 
Total Investments before Short Term Investments (Cost $4,725,649,173)
      4,776,901,243
      Shares    
  Short Term Investments (Cost $59,172,106) 1.3%        
  Money Market Funds 1.3%        
e,x
Institutional Fiduciary Trust Money Market Portfolio, 2.00%
United States 59,172,106   59,172,106
 
Total Investments (Cost $4,784,821,279) 107.2%
      4,836,073,349
 
Other Assets, less Liabilities (7.2)%
      (325,841,024)
 
Net Assets 100.0%
      $4,510,232,325
  |  92
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
†Rounds to less than 0.1% of net assets.
*The principal amount is stated in U.S. dollars unless otherwise indicated.
aNon-income producing.
bThe security is owned by FT Holdings Corporation l, a wholly-owned subsidiary of the Fund. See Note 8.
cFair valued using significant unobservable inputs. See Note 10 regarding fair value measurements.
dSee  Note 5 regarding restricted securities.
eSee  Note 7 regarding investments in affiliated management investment companies.
fVariable rate security. The rate shown represents the yield at period end.
gSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At July 31, 2019, the aggregate value of these securities was $1,383,042,697, representing 30.7% of net assets.
hSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.These securities have been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At July 31, 2019, the aggregate value of these securities was $107,997,849, representing 2.4% of net assets.
iIncome may be received in additional securities and/or cash.
jDefaulted security or security for which income has been deemed uncollectible.
kSecurity purchased on a when-issued basis.  
lPerpetual security with no stated maturity date.
mThe coupon rate shown represents the rate at period end.
nA portion or all of the security purchased on a delayed delivery basis.  
oA portion or all of the security represents an unsettled loan commitment. The coupon rate is to-be determined (TBD) at the time of settlement and will be based upon a reference index/floor plus a spread.
pThe principal represents the notional amount. See  Note 3 regarding value recovery instruments.
qPrincipal amount of security is adjusted for inflation.  
rAdjustable rate security with an interest rate that is not based on a published reference index and spread. The rate is based on the structure of the agreement and current market conditions. The coupon rate shown represents the rate at period end.
sThe bond pays interest and/or principal based upon the issuer’s ability to pay, which may be less than the stated interest rate or principal paydown.
tThe coupon rate shown represents the rate inclusive of any caps or floors, if applicable, in effect at period end.
uThe coupon rate will be determined at time of issue.
vAdjustable Rate Mortgage-Backed Security (ARM); the rate shown is the effective rate at period end. ARM rates are not based on a published reference rate and spread, but instead pass-through weighted average interest income inclusive of any caps or floors, if applicable, from the underlying mortgage loans in which the majority of mortgages pay interest based on the index shown at their designated reset dates plus a spread, less the applicable servicing and guaranty fee (MBS margin).
wSecurity purchased on a to-be-announced (TBA) basis.  
xThe rate shown is the annualized seven-day effective yield at period end.
  |  93
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
At July 31, 2019, the Fund had the following futures contracts outstanding. See  Note 3.
Futures Contracts
Description Type Number of Contracts Notional
Amount* 		Expiration
Date 		Value/Unrealized
Appreciation
(Depreciation)
Interest Rate Contracts          
30 Day Federal Funds
Short 2,190 $895,781,657 12/31/19 $1,234,632
Australian 3 Yr. Bond
Long 2,020 159,431,190 9/16/19 801,230
Australian 10 Yr. Bond
Long 565 56,093,671 9/16/19 887,571
Canadian 10 Yr. Bond
Long 1,002 108,046,691 9/19/19 708,560
CME Ultra Long Term U.S. Treasury Bond
Long 23 4,083,938 9/19/19 153,779
Euro-Bund
Short 55 10,654,322 9/06/19 (234,956)
U.S. Treasury 2 Yr. Note
Long 1,641 351,840,656 9/30/19 470,874
U.S. Treasury 5 Yr. Note
Long 1,874 220,297,484 9/30/19 627,229
U.S. Treasury 10 Yr. Note
Long 448 57,085,000 9/19/19 363,933
U.S. Treasury 30 Yr. Bond
Long 1,037 161,350,719 9/19/19 4,631,566
Ultra 10 Yr. U.S. Treasury Note
Short 210 28,947,187 9/19/19 (219,668)
Total Futures Contracts
$9,424,750
 
*As of period end.
 
At July 31, 2019, the Fund had the following forward exchange contracts outstanding. See  Note 3.
Forward Exchange Contracts
Currency Counterpartya Type Quantity Contract Amount   Settlement
Date 		Unrealized
Appreciation 		Unrealized
Depreciation
OTC Forward Exchange Contracts
Mexican Peso 
JPHQ Buy 206,500,000 $10,517,470   8/08/19   $246,847         $ —
Canadian Dollar 
JPHQ Sell 24,180,000 18,118,348   9/18/19         —   (220,814)
Euro 
DBAB Sell 2,178,384 2,487,105   9/18/19    66,894          —
Euro 
JPHQ Sell 51,374,138 58,208,260   9/18/19 1,130,986          —
Norwegian Krone 
JPHQ Buy 233,800,000 26,867,347   9/18/19         —   (454,767)
Polish Zloty 
JPHQ Buy 31,600,000 8,313,536   9/18/19         —   (154,788)
Polish Zloty 
JPHQ Sell 31,600,000 8,387,970   9/18/19   229,222          —
Swedish Krona 
JPHQ Buy 69,200,000 7,439,540   9/18/19         —   (252,165)
Swedish Krona 
JPHQ Sell 237,200,000 25,285,235   9/18/19   648,741          —
Chinese Yuan Renminbi 
JPHQ Buy 55,000,000 8,195,146   9/27/19         —   (239,938)
Chinese Yuan Renminbi 
JPHQ Sell 99,900,000 14,449,362   9/27/19         —       (188)
Chinese Yuan Renminbi 
JPHQ Sell 109,800,000 16,343,177   9/27/19   461,689          —
South Korean Won 
JPHQ Sell 14,000,000,000 12,371,863   9/27/19   572,287          —
Australian Dollar 
JPHQ Sell 34,750,000 24,366,302   10/11/19   550,673          —
Brazilian Real 
JPHQ Buy 25,300,000 6,449,968   10/11/19   145,461          —
Brazilian Real 
JPHQ Sell 25,300,000 6,339,263   10/11/19         —   (256,166)
Turkish Lira 
JPHQ Buy 41,600,000 6,399,508   10/18/19   826,733          —
Indonesian Rupiah 
DBAB Buy 139,844,100,000 9,568,532   12/16/19   150,468          —
Indonesian Rupiah 
JPHQ Buy 6,900,000,000 471,086   12/16/19     8,456          —
Japanese Yen 
JPHQ Sell 1,400,000,000 13,147,639   1/09/20   115,208          —
Japanese Yen 
JPHQ Buy 948,000,000 8,867,894   1/29/20         —    (28,571)
  |  94
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
Forward Exchange Contracts (continued)
Currency Counterpartya Type Quantity Contract Amount   Settlement
Date 		Unrealized
Appreciation 		Unrealized
Depreciation
OTC Forward Exchange Contracts (continued)
Euro 
JPHQ Sell 46,651,418 $52,680,414   1/30/20   $264,607         $ —
Total Forward Exchange Contracts 
$5,418,272 $(1,607,397)
Net unrealized appreciation (depreciation) 
$3,810,875
 
aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.
 
At July 31, 2019, the Fund had the following credit default swap contracts outstanding. See  Note 3.
Credit Default Swap Contracts
Description Periodic
Payment Rate
Received (Paid) 		Payment
Frequency 		Counter-partya Maturity
Date 		Notional
Amountb 		  Value Unamortized
Upfront
Payments
(Receipts) 		Unrealized
Appreciation
(Depreciation) 		Ratingc
Centrally Cleared Swap Contracts
Contracts to Buy Protectiond
Traded Index
CDX.NA.HY.32
(5.00)% Quarterly   9/20/24 $14,850,000   $(1,087,806) $(1,127,115)    $39,309  
Contracts to Sell Protectiond,e
Traded Index
ITRX.EUR.XOVER.31
1.00% Quarterly   6/20/24 10,000,000 EUR  1,300,694  1,296,488     4,206 Investment
  Grade
Total Centrally Cleared Swap Contracts
$212,888 $169,373 $43,515  
OTC Swap Contracts
Contracts to Buy Protectiond
Single Name
Ally Financial Inc.
(5.00)% Quarterly JPHQ 6/20/24 $20,750,000   $(4,018,954) $(3,210,447) $(808,507)  
Government of Italy
(1.00)% Quarterly BZWS 6/20/23 10,600,000       (2,862)     89,794   (92,656)  
Government of Turkey
(1.00)% Quarterly BZWS 12/20/19  3,466,666        6,584     62,986   (56,402)  
Nabors Industries Inc.
(1.00)% Quarterly CITI 12/20/21 10,225,000      518,413    356,198   162,215  
Navient Corp.
(5.00)% Quarterly JPHQ 3/20/20  5,000,000     (176,798)   (116,437)   (60,361)  
PHH Corp.
(5.00)% Quarterly GSCO 9/20/19  5,400,000      (67,029)      1,310   (68,339)  
Contracts to Sell Protectiond,e
Single Name
The Goldman Sachs Group Inc.
1.00% Quarterly JPHQ 6/20/24 20,750,000      419,264    139,162   280,102 BBB+
Government of Argentina
5.00% Quarterly BZWS 6/20/23  2,150,000     (264,695)     36,751 (301,446) B
Government of Argentina
5.00% Quarterly BZWS 6/20/23  5,500,000     (677,126) (1,082,574)   405,448 B
Government of Argentina
5.00% Quarterly CITI 6/20/23  4,200,000     (517,078)    (84,254) (432,824) B
Government of Argentina
5.00% Quarterly CITI 12/20/23  4,200,000     (559,748)   (208,812) (350,936) B
  |  95
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
Credit Default Swap Contracts (continued)
Description Periodic
Payment Rate
Received (Paid) 		Payment
Frequency 		Counter-partya Maturity
Date 		Notional
Amountb 		  Value Unamortized
Upfront
Payments
(Receipts) 		Unrealized
Appreciation
(Depreciation) 		Ratingc
OTC Swap Contracts (continued)
Contracts to Sell Protectiond,e (continued)
Single Name (continued)
Government of Indonesia
1.00% Quarterly CITI 6/20/24 $17,770,000      $195,765    $(56,639)   $252,404 BBB
Government of Italy
1.00% Quarterly BZWS 6/20/23 10,600,000     (160,424)   (393,765)   233,341 NR
Government of Russia
1.00% Quarterly BNDP 6/20/24  8,600,000       15,439   (109,064)   124,503 BBB-
Government of Spain
1.00% Quarterly CITI 6/20/24 12,300,000      356,383    319,086    37,297 NR
Morgan Stanley
1.00% Quarterly JPHQ 6/20/24 20,750,000      457,340    280,118   177,222 BBB+
Nabors Industries Inc.
1.00% Quarterly CITI 12/20/23 10,225,000   (1,576,431) (1,344,247) (232,184) BB
Traded Index
fBNP Paribas Bespoke Bordeaux Index, Mezzanine Tranche 7-10%
2.10% Quarterly BNDP 6/20/20  5,150,000       59,615          —    59,615 Non-
  Investment
Grade
fBNP Paribas Bespoke Rodez Index, Mezzanine Tranche 5-7%
2.00% Quarterly BNDP 12/20/20  5,300,000        8,033          —     8,033 Non-
  Investment
Grade
fBNP Paribas Bespoke Rodez2 Index, Mezzanine Tranche 5-7%
3.20% Quarterly BNDP 12/20/20  2,700,000       62,260          —    62,260 Non-
  Investment
Grade
fCitibank Bespoke Cambridge Index, Equity Tranche 0-3%
0.00% Quarterly CITI 12/20/19  8,476,000     (549,866)   (269,917) (279,949) Non-
  Investment
Grade
fCitibank Bespoke Lima Index, Mezzanine Tranche 5-7%
2.13% Quarterly CITI 12/20/19 10,500,000      112,470          —   112,470 Non-
  Investment
Grade
fCitibank Bespoke Palma Index, Mezzanine Tranche 5-7%
2.30% Quarterly CITI 6/20/21  5,900,000       75,619          —    75,619 Non-
  Investment
Grade
  |  96
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
Credit Default Swap Contracts (continued)
Description Periodic
Payment Rate
Received (Paid) 		Payment
Frequency 		Counter-partya Maturity
Date 		Notional
Amountb 		  Value Unamortized
Upfront
Payments
(Receipts) 		Unrealized
Appreciation
(Depreciation) 		Ratingc
OTC Swap Contracts (continued)
Contracts to Sell Protectiond,e (continued)
Traded Index (continued)
fCitibank Bespoke Phoenix Index, Mezzanine Tranche 5-7%
2.90% Quarterly CITI 12/20/21  $7,800,000      $126,322         $ —   $126,322 Non-
  Investment
Grade
fCitibank Bespoke Singapore Index, Equity Tranche 0-3%
0.00% Quarterly CITI 6/20/20 11,300,000   (1,788,508) (1,403,936) (384,572) Non-
  Investment
Grade
fCitibank Bespoke Sydney Index, Equity Tranche 0-3%
0.00% Quarterly CITI 6/20/20  3,595,109     (640,849)   (509,925) (130,924) Non-
  Investment
Grade
fCitibank Bespoke Verona Index, Equity Tranche 0-3%
0.00% Quarterly CITI 12/20/19  6,112,500     (254,539)   (238,937)   (15,602) Non-
  Investment
Grade
fCitibank Bespoke Verona Index, Mezzanine Tranche 7-15%
0.40% Quarterly CITI 12/20/19 21,000,000       24,936          —    24,936 Non-
  Investment
Grade
MCDX.NA.31
1.00% Quarterly CITI 12/20/23  2,325,000       46,007     20,672    25,335 Investment
  Grade
fMorgan Stanley Bespoke Pecan Index, Mezzanine Tranche 5-10%
3.98% Quarterly MSCO 12/20/21  8,300,000       30,156          —    30,156 Non-
  Investment
Grade
fMorgan Stanley Bespoke Pecan Index, Mezzanine Tranche 5-10%
4.10% Quarterly MSCO 12/20/21  8,300,000      160,009          —   160,009 Non-
  Investment
Grade
Total OTC Swap Contracts
$(8,580,292) $(7,722,877) $(857,415)  
Total Credit Default Swap Contracts
$(8,367,404) $(7,553,504) $(813,900)  
  |  97
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
Credit Default Swap Contracts (continued)
aPosting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of the agreement. The table below summarizes the cash and/or securities held as collateral for each applicable counterparty at period end.
 
Counterparty Collateral
Pledged
(Received)
BZWS $1,010,000
CITI 4,340,000
DBAB (236,283)
FBCO (110,000)
JPHQ (923,806)
Total collateral $4,079,911
 
bIn U.S. dollars unless otherwise indicated. For contracts to sell protection, the notional amount is equal to the maximum potential amount of the future payments and no recourse provisions have been entered into in association with the contracts.
cBased on Standard and Poor’s (S&P) Rating for single name swaps. Internal ratings based on mapping into equivalent ratings from external vendors.
dPerformance triggers for settlement of contract include default, bankruptcy or restructuring for single name swaps, and failure to pay or bankruptcy of the underlying securities for traded index swaps.
eThe fund enters contracts to sell protection to create a long credit position.
fRepresents a custom index comprised of a basket of underlying instruments.
 
At July 31, 2019, the Fund had the following cross-currency swap contracts outstanding. See  Note 3.
Cross-Currency Swap Contracts
Description Payment
Frequency 		Counterparty Maturity
Date 		Notional
Amount 		  Value/Unrealized
Appreciation
(Depreciation)
OTC Swap Contracts
Receive Floating 3-month USD LIBOR + 2.87%
Quarterly     3,137,400 USD  
Pay Fixed 2.50%
Annual CITI 5/04/21 2,700,000 EUR $154,439
Receive Floating 3-month USD LIBOR + 1.334%
Quarterly     8,176,000 USD  
Pay Floating 3-month EUR LIBOR + 1.12%
Quarterly CITI 7/10/21 7,300,000 EUR 99,517
Total Cross Currency Swap Contracts
$253,956
 
At July 31, 2019, the Fund had the following inflation index swap contracts outstanding. See  Note 3.
Inflation Index Swap Contracts
Description Payment
Frequency 		Counterparty Maturity
Date 		Notional
Amount 		  Value/Unrealized
Appreciaton
(Depreciation)
Centrally Cleared Swap Contracts
Receive variable change in USA-CPI-U
At maturity          
Pay Fixed 1.96%
At maturity   8/31/24 $24,600,000    $37,313
OTC Swap Contracts
Receive variable change in USA-CPI-U
At maturity          
Pay Fixed 1.782%
At maturity JPHQ 5/27/24 35,700,000   656,632
Total Inflation Index Swap Contracts
$693,945
 
  |  98
Franklin Investors Securities Trust
CONSOLIDATED STATEMENT OF INVESTMENTS (unaudited)
Franklin Total Return Fund (continued)
At July 31, 2019, the Fund had the following total return swap contracts outstanding. See  Note 3.
Total Return Swap Contracts
Underlying Instruments Financing Rate Payment
Frequency 		Counterparty Maturity
Date 		Notional
Value* 		  Value/Unrealized
Appreciation
(Depreciation)
OTC Swap Contracts
Longa
Euribor 3 Month
3-month EUR LIBOR Quarterly JPHQ 12/20/19 20,000,000 EUR   $103,146
Markit iBoxx USD Liquid Leveraged Loan Index
3-month USD LIBOR Quarterly CITI 9/20/19 8,700,000     252,583
Markit iBoxx USD Liquid Leveraged Loan Index
3-month USD LIBOR Quarterly JPHQ 9/20/19 20,500,000     786,709
Markit iBoxx USD Liquid Leveraged Loan Index
3-month USD LIBOR Quarterly JPHQ 12/20/19 8,400,000      93,288
Markit iBoxx USD Liquid Leveraged Loan Index
3-month USD LIBOR Quarterly MSCO 12/20/19 10,600,000     185,053
Markit iBoxx USD Liquid Leveraged Loan Index
3-month USD LIBOR Quarterly FBCO 3/20/20 10,400,000     154,722
Markit iBoxx USD Liquid Leveraged Loan Index
3-month USD LIBOR Quarterly GSCO 3/20/20 16,700,000     315,366
Total Total Return Swap Contracts
$1,890,867
 
*In U.S. dollars unless otherwise indicated.
aThe Fund receives the total return on the underlying instrument and pays a variable financing rate.
See Abbreviations on page 114.
  |  99
Franklin Investors Securities Trust
Notes to Statements of Investments (unaudited)
1.  ORGANIZATION
Franklin Investors Securities Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of eight separate funds (Funds) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP).
Effective March 1, 2019, Franklin Balanced Fund was renamed Franklin Managed Income Fund. 
2.  FINANCIAL INSTRUMENT VALUATION
The Funds’ investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Funds calculate the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Trust’s Board of Trustees (the Board), the Funds’ administrator has responsibility for oversight of valuation, including leading the cross-functional Valuation Committee (VC). The Funds may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.
Equity securities, exchange traded funds and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.
Debt securities generally trade in the OTC market rather than on a securities exchange. The Funds’ pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value. Securities denominated in a foreign currency are converted into their U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the date that the values of the foreign debt securities are determined.
Investments in open-end mutual funds are valued at the closing NAV. Investments in repurchase agreements are valued at cost, which approximates fair value.
Certain derivative financial instruments are centrally cleared or trade in the OTC market. The Funds’ pricing services use various techniques including industry standard option pricing models and proprietary discounted cash flow models to determine the fair value of those instruments. The Funds’ net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.
The Funds have procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Funds’ primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the
  |  100
Franklin Investors Securities Trust
Notes to Statements of Investments (unaudited)
anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Funds’ business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Funds’ portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, the VC monitors price movements following the close of trading in foreign stock markets through a series of country specific market proxies (such as baskets of American Depositary Receipts, futures contracts and exchange traded funds). These price movements are measured against established trigger thresholds for each specific market proxy to assist in determining if an event has occurred that may call into question the reliability of the values of the foreign securities held by the Funds. If such an event occurs, the securities may be valued using fair value procedures, which may include the use of independent pricing services.
When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Funds’ NAV is not calculated, which could result in differences between the value of the Funds’ portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Funds for financial reporting purposes. 
3.  DERIVATIVE FINANCIAL INSTRUMENTS
Certain or all Funds invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements.
Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. Certain or all Funds attempt to reduce their exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination. Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty. Termination events applicable to the Funds include failure of the Funds to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. Early termination by the counterparty may result in an immediate payment by the Funds of any net liability owed to that counterparty under the ISDA agreement.
Collateral requirements differ by type of derivative. Collateral or initial margin requirements are set by the broker or exchange clearing house for exchange traded and centrally cleared derivatives. Initial margin deposited is held at the exchange and can be in the form of cash and/or securities. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of the agreement. Generally, collateral is determined at the close of Fund business each day and any additional collateral required due to changes in derivative values may be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund for OTC
  |  101
Franklin Investors Securities Trust
Notes to Statements of Investments (unaudited)
3.  DERIVATIVE FINANCIAL INSTRUMENTS (continued)
derivatives, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Funds’ investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.
At July 31, 2019, Franklin Total Return Fund received $1,055,089 in U.S. Treasury Bills, Bonds and Notes as collateral for derivatives.
Certain or all Funds entered into exchange traded futures contracts primarily to manage and/or gain exposure to interest rate risk. A futures contract is an agreement between the Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable.
Certain or all Funds entered into OTC forward exchange contracts primarily to manage and/or gain exposure to certain foreign currencies. A forward exchange contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency for a specific exchange rate on a future date.
Certain or all Funds entered into credit default swap contracts primarily to manage and/or gain exposure to credit risk. A credit default swap is an agreement between the Fund and a counterparty whereby the buyer of the contract receives credit protection and the seller of the contract guarantees the credit worthiness of a referenced debt obligation. These agreements may be privately negotiated in the over-the-counter market (OTC credit default swaps) or may be executed in a multilateral trade facility platform, such as a registered exchange (centrally cleared credit default swaps). The underlying referenced debt obligation may be a single issuer of corporate or sovereign debt, a credit index, a basket of issuers or indices, or a tranche of a credit index or basket of issuers or indices. In the event of a default of the underlying referenced debt obligation, the buyer is entitled to receive the notional amount of the credit default swap contract from the seller in exchange for the referenced debt obligation, a net settlement amount equal to the notional amount of the credit default swap less the recovery value of the referenced debt obligation, or other agreed upon amount. For centrally cleared credit default swaps, required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable. Over the term of the contract, the buyer pays the seller a periodic stream of payments, provided that no event of default has occurred. Such periodic payments are accrued daily as an unrealized appreciation or depreciation until the payments are made, at which time they are realized. Upfront payments and receipts represent compensating factors between stated terms of the credit default swap agreement and prevailing market conditions (credit spreads and other relevant factors). These upfront payments and receipts are amortized over the term of the contract as a realized gain or loss.
Certain or all Funds entered into OTC cross currency swap contracts primarily to manage and/or gain exposure to certain foreign currencies. A cross currency swap is an agreement between the Fund and a counterparty to exchange cash flows (determined using either a fixed or floating rate) based on the notional amounts of two different currencies. The notional amounts are typically determined based on the spot exchange rates at the opening of the contract. Cross currency swaps may require the exchange of notional amounts at the opening and/or closing of the contract. Over the term of the contract, contractually required payments to be paid and to be received are accrued daily and recorded as unrealized depreciation and appreciation until the payments are made, at which time they are realized. Upfront payments and receipts represent compensating factors between stated terms of the cross currency swap contract and prevailing market conditions (interest rate spreads and other relevant factors). These upfront payments and receipts are amortized over the term of the contract as a realized gain or loss.
Certain or all Funds entered into inflation index swap contracts primarily to manage and/or gain exposure to inflation risk. An inflation index swap is an agreement between the Fund and a counterparty to exchange cash flows whereby one party makes payments based on the percentage change in an index that serves as a measure of inflation and the other party makes a regular payment based on a compounded fixed rate, applied to a notional amount. These agreements may be privately negotiated in the over-the-counter market (OTC inflation index swap) or may be executed on a registered exchange (centrally cleared inflation index swap). For centrally cleared inflation index swaps, required initial margins are pledged by the Fund, and
  |  102
Franklin Investors Securities Trust
Notes to Statements of Investments (unaudited)
the daily change in fair value is accounted for as a variation margin payable or receivable. Over the term of the contract, contractually required payments to be paid and to be received are accrued daily and recorded as unrealized depreciation and appreciation until the payments are made, at which time they are realized. Typically, an inflation index swap has payment obligations netted and exchanged upon maturity.
Certain or all Funds entered into interest rate swap contracts primarily to manage interest rate risk. An interest rate swap is an agreement between the Fund and a counterparty to exchange cash flows based on the difference between two interest rates, applied to a notional amount. These agreements may be privately negotiated in the over-the-counter market (OTC interest rate swaps) or may be executed on a registered exchange (centrally cleared interest rate swaps). For centrally cleared interest rate swaps, required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable. Over the term of the contract, contractually required payments to be paid and to be received are accrued daily and recorded as unrealized depreciation and appreciation until the payments are made, at which time they are realized.
Certain or all Funds entered into OTC total return swap contracts primarily to manage and/or gain exposure to credit and other market risks of an underlying instrument such as a stock, bond, index or basket of securities or indices. A total return swap is an agreement between the Fund and a counterparty to exchange a return linked to an underlying instrument for a floating or fixed rate payment, both based upon a notional amount. Over the term of the contract, contractually required payments to be paid or received are accrued daily and recorded as unrealized appreciation or depreciation until the payments are made, at which time they are recognized as realized gain or loss.
Certain or all Funds purchased or wrote exchange traded option contracts primarily to manage and/or gain exposure to equity price. An option is a contract entitling the holder to purchase or sell a specific amount of shares or units of an asset or notional amount of a swap (swaption), at a specified price. When an option is purchased or written, an amount equal to the premium paid or received is recorded as an asset or liability, respectively. Upon exercise of an option, the acquisition cost or sales proceeds of the underlying investment is adjusted by any premium received or paid. Upon expiration of an option, any premium received or paid is recorded as a realized gain or loss. Upon closing an option other than through expiration or exercise, the difference between the premium received or paid and the cost to close the position is recorded as a realized gain or loss.
Certain or all Funds invest in value recovery instruments (VRI) primarily to gain exposure to economic growth. Periodic payments from VRI are dependent on established benchmarks for underlying variables. VRI has a notional amount, which is used to calculate amounts of payments to holders. Payments are recorded upon receipt as realized gains. The risks of investing in VRI include growth risk, liquidity, and the potential loss of investment.
The following Funds have invested in derivatives during the period.
Franklin Floating Rate Daily Access Fund – Swaps
Franklin Low Duration Total Return Fund – Futures, forwards and swaps
Franklin Managed Income Fund – Options
Franklin Total Return Fund – Futures, forwards, swaps and VRI
4.  MORTGAGE DOLLAR ROLLS
Franklin Total Return Fund enter into mortgage dollar rolls, typically on a to-be-announced basis. Mortgage dollar rolls are agreements between the Fund and a financial institution where the Fund sells (or buys) mortgage-backed securities for delivery on a specified date and simultaneously contracts to repurchase (or sell) substantially similar (same type, coupon, and maturity) securities at a future date and at a predetermined price. Gains or losses are realized on the initial sale, and the difference between the repurchase price and the sale price is recorded as an unrealized gain or loss to the Fund upon entering into the mortgage dollar roll. In addition, the Fund may invest the cash proceeds that are received from the initial sale. During the period between the sale and repurchase, the Fund is not entitled to principal and interest paid on the mortgage backed securities. Transactions in mortgage dollar rolls are accounted for as purchases and sales and may result in an increase to the Fund’s portfolio turnover rate. The risks of mortgage dollar roll transactions include the potential inability of the counterparty to fulfill its obligations. 
  |  103
Franklin Investors Securities Trust
Notes to Statements of Investments (unaudited)
5.  RESTRICTED SECURITIES
At July 31, 2019, investments in restricted securities, excluding securities exempt from registration under the Securities Act of 1933 deemed to be liquid, were as follows:
Principal Amount/ Shares/Units   Issuer Acquisition
Date 		Cost Value
Franklin Floating Rate Daily Access Fund      
1,219,956   a
Appvion Operations Inc.
6/14/18 - 4/12/19 $12,791,766 $13,948,586
170,300   b
Remington Outdoor Co. Inc., Litigation Units
5/16/18 - 4/12/19  —  —
   
Total Restricted Securities (Value is 0.5% of Net Assets)
$12,791,766 $13,948,586
Franklin Low Duration Total Return Fund      
24,739   c
Appvion Operations Inc.
4/12/19 $334,607 $282,862
12,326,925  
K2016470219 South Africa Ltd., A
4/15/13 - 2/01/17 92,077 8,578
1,226,701  
K2016470219 South Africa Ltd., B
2/01/17 911 854
976,985  
K2016470219 South Africa Ltd., senior secured note, 144A, PIK, 3.00%, 12/31/22
4/15/13 - 6/30/19 1,327,730 1,218
232,121  
K2016470260 South Africa Ltd., senior secured note, 144A, PIK, 25.00%, 12/31/22
2/01/17 - 6/30/19 166,693 2,274
16,078   d
Remington Outdoor Co. Inc., Litigation Units
5/16/18 - 4/12/19  —  —
   
Total Restricted Securities (Value is 0.0%† of Net Assets)
$1,922,018 $295,786
Franklin Total Return Fund      
13,033   e
Appvion Operations Inc.
4/12/19 $176,272 $149,013
28,762,824  
K2016470219 South Africa Ltd., A
4/15/13 - 2/01/17 221,469 20,017
2,862,311  
K2016470219 South Africa Ltd., B
2/01/17 2,125 1,992
2,279,634  
K2016470219 South Africa Ltd., senior secured note, 144A, PIK, 3.00%, 12/31/22
4/15/13 - 6/30/19 3,152,621 2,842
541,623  
K2016470260 South Africa Ltd., senior secured note, 144A, PIK, 25.00%, 12/31/22
2/01/17 - 6/30/19 388,951 5,306
4,897   f
Remington Outdoor Co. Inc., Litigation Units
4/12/19  —  —
   
Total Restricted Securities (Value is 0.0%† of Net Assets)
$3,941,438 $179,170
 
†Rounds to less than 0.1% of net assets.
aThe Fund also invests in unrestricted securities of the issuer, valued at $45,097,953 as of July 31, 2019.
bThe Fund also invests in unrestricted securities of the issuer, valued at $3,843,980 as of July 31, 2019.
cThe Fund also invests in unrestricted securities of the issuer, valued at $557,967 as of July 31, 2019.
dThe Fund also invests in unrestricted securities of the issuer, valued at $362,923 as of July 31, 2019.
eThe Fund also invests in unrestricted securities of the issuer, valued at $293,938 as of July 31, 2019.
fThe Fund also invests in unrestricted securities of the issuer, valued at $110,540 as of July 31, 2019.
  |  104
Franklin Investors Securities Trust
Notes to Statements of Investments (unaudited)
6.  HOLDINGS OF 5% VOTING SECURITIES OF PORTFOLIO COMPANIES
The 1940 Act defines "affiliated companies" to include investments in portfolio companies in which a fund owns 5% or more of the outstanding voting securities. During the period ended July 31, 2019, investments in “affiliated companies” were as follows:
Name of Issuer Value at
Beginning
of Period 		Purchasesa Sales Realized
Gain (Loss) 		Net Change in
Unrealized
Appreciation
(Depreciation) 		Value at
End of
Period 		Number of
Shares/
Units
Held
at End
of Period 		Investment
Income
Franklin Floating Rate Daily Access Fund
Non-Controlled Affiliates
                Dividends
Appvion Operations Inc.
$11,581,914 $1,189,036 $ — $ — $1,177,636 $13,948,586 1,219,956 $ —
Remington Outdoor Co. Inc.
18,876,774 447,384 — — (15,480,178) 3,843,980 1,808,932 —
Remington Outdoor Co. Inc., Litigation Units
— — — — — — 170,300 —
  $30,458,688 $1,636,420 $ — $ — $(14,302,542) $17,792,566   $ —
                Interest
Appvion Operations, Inc., Term Loan, 6/15/26
$53,498,450 $2,028,297 $(10,172,761)b $16,894 $(272,927) $45,097,953 45,324,576 $3,229,328
Total Affiliated Securities (Value is 2.3% of Net Assets)
$83,957,138 $3,664,717 $(10,172,761) $16,894 $(14,575,469) $62,890,519   $3,229,328
 
aPurchases were the result of an in-kind transfer of securities.
bMay include accretion, amortization, partnership adjustments, and/or other cost basis adjustments.  
7.  INVESTMENTS IN AFFILIATED MANAGEMENT INVESTMENT COMPANIES
Certain or all Funds invest in one or more affiliated management investment companies for purposes other than exercising a controlling influence over the management or policies. During the period ended July 31, 2019, investments in affiliated management investment companies were as follows:
  Value at
Beginning
of Period 		Purchases Sales Realized
Gain (Loss) 		Net Change in
Unrealized
Appreciation
(Depreciation) 		Value at
End of
Period 		Number of
Shares
Held at End
of Period 		Investment
Income
Franklin Adjustable U.S. Government Securities Fund
Non-Controlled Affiliates
                         Dividends
Institutional Fiduciary Trust Money Market Portfolio, 2.00%
 $18,732,898   $139,736,757    $(122,490,925)          $  —         $  —  $35,978,730 35,978,730   $460,004
Franklin Convertible Securities Fund
Non-Controlled Affiliates
                Dividends
Institutional Fiduciary Trust Money Market Portfolio, 2.00%
$163,242,682 $598,625,123 $(556,031,115) $  — $  — $205,836,690 205,836,690 $1,995,758
  |  105
Franklin Investors Securities Trust
Notes to Statements of Investments (unaudited)
7.  INVESTMENTS IN AFFILIATED MANAGEMENT INVESTMENT COMPANIES (continued)
  Value at
Beginning
of Period 		Purchases Sales Realized
Gain (Loss) 		Net Change in
Unrealized
Appreciation
(Depreciation) 		Value at
End of
Period 		Number of
Shares
Held at End
of Period 		Investment
Income
Franklin Equity Income Fund
Non-Controlled Affiliates
                         Dividends
Institutional Fiduciary Trust Money Market Portfolio, 2.00%
 $70,527,817   $296,710,726    $(327,171,217)          $  —         $  —  $40,067,326 40,067,326   $550,964
Franklin Floating Rate Daily Access Fund
Non-Controlled Affiliates
                Dividends
Franklin Floating Rate Income Funda
$64,272,450 $  — $  — $  — $(5,401,621) $58,870,829 6,837,495 $3,697,245
Franklin Lower Tier Floating Rate Fund
64,398,391 — (57,966,627)b (11,845,737) 5,413,973 —c — 2,769,898
Institutional Fiduciary Trust Money Market Portfolio, 2.00%
219,846,906 471,889,065 (645,487,604)   —   — 46,248,367 46,248,367 2,519,005
Total Affiliated Securities
$348,517,747 $471,889,065 $(703,454,231) $(11,845,737) $12,352 $105,119,196   $8,986,148
Franklin Low Duration Total Return Fund
Non-Controlled Affiliates
                Dividends
Franklin Floating Rate Income Funda
$22,459,491 $  — $  — $  — $(1,887,553) $20,571,938 2,389,308 $1,296,020
Franklin Lower Tier Floating Rate Fund
18,122,357   — (16,312,394)b (1,828,482) 18,519 —c — 779,477
Institutional Fiduciary Trust Money Market Portfolio, 2.00%
58,057,813 768,174,830 (736,134,412)   —   — 90,098,231 90,098,231 1,179,226
Total Affiliated Securities
$98,639,661 $768,174,830 $(752,446,806) $(1,828,482) $(1,869,034) $110,670,169   $3,254,723
Franklin Managed Income Fund
Controlled Affiliates
                Dividends
Franklin FTSE Europe Hedged ETF
$32,123,250 $  — $(29,576,550) $(4,136,075) $1,589,375 $—c — $  —
Franklin FTSE Japan Hedged ETF
30,808,000   — (28,417,805) (4,455,070) 2,064,875 —c —   —
Total Controlled Affiliates
$62,931,250 $ — $(57,994,355) $(8,591,145) $3,654,250 $ —   $ —
Non-Controlled Affiliates
                Dividends
Institutional Fiduciary Trust Money Market Portfolio, 2.00%
$126,683,009 $1,266,022,186 $(1,179,080,624) $ — $ — $213,624,571 213,624,571 $2,334,809
  |  106
Franklin Investors Securities Trust
Notes to Statements of Investments (unaudited)
  Value at
Beginning
of Period 		Purchases   Sales Realized
Gain (Loss) 		Net Change in
Unrealized
Appreciation
(Depreciation) 		Value at
End of
Period 		Number of
Shares
Held at End
of Period 		Investment
Income 		 
Franklin Managed Income Fund (continued)
Non-Controlled Affiliates (continued)
                  Income from
securities
loaned 		 
Institutional Fiduciary Trust Money Market Portfolio, 2.00%
         $  —       $582,000         $(582,000)          $  —         $  —          $  — —       $993  
Total Non-Controlled Affiliates
$126,683,009 $1,266,604,186   $(1,179,662,624) $ — $ — $213,624,571   $2,335,802  
Total Affiliated Securities
$189,614,259 $1,266,604,186   $(1,237,656,979) $(8,591,145) $3,654,250 $213,624,571   $2,335,802  
Franklin Real Return Fund
Non-Controlled Affiliates
                  Dividends  
Franklin Pelagos Commodities Strategy Fund, Class R6
$5,808,508 $394,117d   $  — $  — $(872,966) $5,329,659 969,029 $394,117  
Franklin Total Return Fund
Controlled Affiliates
                  Dividends  
Franklin Liberty Investment Grade Corporate ETF
$9,218,000 $199,750,463   $  — $  — $5,843,309 $214,811,772 8,555,000 $1,603,081  
Franklin Liberty Senior Loan ETF
7,548,483 15,521,063     —   — (303,815) 22,765,731 914,900 781,054  
Total Controlled Affiliates
$16,766,483 $215,271,526   $ — $ — $5,539,494 $237,577,503   $2,384,135  
Non-Controlled Affiliates
                  Dividends  
Franklin Flexible Alpha Bond Fund, Class R6
$99,287,894 $ —   $(98,880,977) $(1,119,023) $712,106 $—c — $1,881,536  
Franklin Floating Rate Income Funda
17,759,516 —   — — (1,492,555) 16,266,961 1,889,310 1,024,809  
Franklin Lower Tier Floating Rate Fund
9,546,927 —   (8,593,431)b (963,252) 9,756 —c — 410,632  
Institutional Fiduciary Trust Money Market Portfolio, 2.00%
39,095,058 1,153,987,604   (1,133,910,556) — — 59,172,106 59,172,106 1,220,777  
Total Non-Controlled Affiliates
$165,689,395 $1,153,987,604   $(1,241,384,964) $(2,082,275) $(770,693) $75,439,067   $4,537,754  
Total Affiliated Securities
$182,455,878 $1,369,259,130   $(1,241,384,964) $(2,082,275) $4,768,801 $313,016,570   $6,921,889  
 
aEffective May 31, 2019, Franklin Middle Tier Floating Rate Fund was renamed Franklin Floating Rate Income Fund.
bThe Fund sold shares of the affiliate through an in-kind transfer of common stocks and other equity interests, corporate bonds and senior floating rate interests securities and cash.
cAs of July 31, 2019, no longer held by the fund.
dPurchase was the result of a corporate action.
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Franklin Investors Securities Trust
Notes to Statements of Investments (unaudited)
8.  INVESTMENTS IN FT HOLDINGS CORPORATION I (FT SUBSIDIARY)
Franklin Total Return Fund invests in certain financial instruments through its investment in FT Subsidiary. FT Subsidiary is a Delaware Corporation, is a wholly-owned subsidiary of the Fund, and is able to invest in certain financial instruments consistent with the investment objective of the Fund. At July 31, 2019, FT Subsidiary’s investment, Turtle Bay Resort, as well as any other assets and liabilities of FT Subsidiary are reflected in the Fund’s Consolidated Statement of Investments. At July 31, 2019, the net assets of FT Subsidiary were $5,200,285, representing 0.1% of the Fund’s consolidated net assets. The Fund’s investment in FT Subsidiary is limited to 25% of consolidated assets. 
9.  UPCOMING ACQUISITIONS/MERGER
On July 17, 2019, the Board of Trustees of Franklin Investors Securities Trust approved a proposal to reorganize Franklin Real Return Fund with and into Franklin Total Return Fund, subject to approval by the shareholders of Franklin Real Return Fund.
On July 17, 2019, the Board of Trustees of Franklin Strategic Series approved a proposal to reorganize Franklin Flexible Alpha Bond Fund with and into the Franklin Low Duration Total Return Fund subject to approval by the shareholders of Franklin Flexible Alpha Bond Fund. 
10.  FAIR VALUE MEASUREMENTS
The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Funds’ own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds financial instruments and are summarized in the following fair value hierarchy:
•  Level 1 – quoted prices in active markets for identical financial instruments
•  Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)
•  Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of financial instruments)
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
A summary of inputs used as of July 31, 2019, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:
  Level 1 Level 2 Level 3 Total
Franklin Adjustable U.S. Government Securities Fund
Assets:        
Investments in Securities:a        
Mortgage-Backed Securities
$— $668,880,472 $— $668,880,472
Short Term Investments
35,978,730 9,598,650 — 45,577,380
Total Investments in Securities
$35,978,730 $678,479,122 $ — $714,457,852
Franklin Convertible Securities Fund
Assets:        
Investments in Securities:a        
Equity Investmentsb
$685,275,552 $— $— $685,275,552
Convertible Bonds
— 3,179,321,940 — 3,179,321,940
Escrows and Litigation Trusts
— — —c —
Short Term Investments
205,836,690 — — 205,836,690
Total Investments in Securities
$891,112,242 $3,179,321,940 $ — $4,070,434,182
  |  108
Franklin Investors Securities Trust
Notes to Statements of Investments (unaudited)
  Level 1 Level 2 Level 3 Total
Franklin Equity Income Fund
Assets:        
Investments in Securities:a        
Equity Investmentsb
$2,162,322,583 $— $— $2,162,322,583
Equity-Linked Securities
— 218,127,765 — 218,127,765
Short Term Investments
40,067,326 — — 40,067,326
Total Investments in Securities
$2,202,389,909 $218,127,765 $ — $2,420,517,674
Franklin Floating Rate Daily Access Fund
Assets:        
Investments in Securities:a        
Equity Investments:b        
Forest Products
$— $— $13,948,586 $13,948,586
Oil & Gas Exploration & Production
— 10,548,964 — 10,548,964
All Other Equity Investments
62,714,809 — — 62,714,809
Corporate Bonds
— 16,349,603 — 16,349,603
Senior Floating Rate Interests:        
Oil & Gas Exploration & Production
— 160,796,439 18,559,394 179,355,833
Personal Products
— 2,711,813 58,698,892 61,410,705
All Other Senior Floating Rate Interests
— 1,978,328,740 — 1,978,328,740
Escrows and Litigation Trusts
— — —c —
Asset-Backed Securities
— 364,676,475 — 364,676,475
Short Term Investments
46,248,367 — — 46,248,367
Total Investments in Securities
$108,963,176 $2,533,412,034 $91,206,872 $2,733,582,082
Liabilities:        
Other Financial Instruments:        
Swap Contracts
$— $960,337 $— $960,337
  |  109
Franklin Investors Securities Trust
Notes to Statements of Investments (unaudited)
10.  FAIR VALUE MEASUREMENTS (continued)
  Level 1 Level 2 Level 3 Total
Franklin Low Duration Total Return Fund
Assets:        
Investments in Securities:a        
Equity Investments:b        
Materials
$22,719 $— $282,862 $305,581
Retailing
— — 9,432 9,432
All Other Equity Investments
78,351,513 — — 78,351,513
 Corporate Bonds:        
Retailing
— 33,547,333 3,492 33,550,825
All Other Corporate Bonds
— 782,241,691 — 782,241,691
 Senior Floating Rate Interests:        
Household & Personal Products
— — 3,170,816 3,170,816
All Other Senior Floating Rate Interests
— 99,425,497 — 99,425,497
Foreign Government and Agency Securities
— 189,166,376 — 189,166,376
U.S. Government and Agency Securities
— 564,912,222 — 564,912,222
Marketplace Loans
— — 20,165,133 20,165,133
Asset-Backed Securities and Commercial Mortgage-Backed Securities
— 1,325,148,962 — 1,325,148,962
Mortgage-Backed Securities
— 19,091,698 — 19,091,698
Municipal Bonds
— 22,387,750 — 22,387,750
Escrows and Litigation Trusts
— — —c —
Short Term Investments
90,098,231 2,047,500 — 92,145,731
Total Investments in Securities
$168,472,463 $3,037,969,029 $23,631,735 $3,230,073,227
Other Financial Instruments:        
Futures Contracts
$1,120,377 $— $— $1,120,377
Forward Exchange Contracts
— 1,861,585 — 1,861,585
Swap Contracts
— 3,472,741 — 3,472,741
Total Other Financial Instruments
$1,120,377 $5,334,326 $ — $6,454,703
Liabilities:        
Other Financial Instruments:        
Futures Contracts
$587,675 $— $— $587,675
Forward Exchange Contracts
— 387,066 — 387,066
Swap Contracts
— 1,451,411 — 1,451,411
Total Other Financial Instruments
$587,675 $1,838,477 $ — $2,426,152
Franklin Managed Income Fund
Assets:        
Investments in Securities:a        
Equity Investmentsb
$1,380,564,136 $— $— $1,380,564,136
Equity-Linked Securities
— 414,165,906 — 414,165,906
Index-Linked Notes
— 33,837,500 — 33,837,500
Convertible Bonds
— 3,578,893 — 3,578,893
Corporate Bonds
— 1,303,336,645 — 1,303,336,645
U.S. Government and Agency Securities
— 253,935,547 — 253,935,547
Options Purchased
8,130,000 — — 8,130,000
Short Term Investments
213,624,571 74,950,675 — 288,575,246
Total Investments in Securities
$1,602,318,707 $2,083,805,166 $ — $3,686,123,873
  |  110
Franklin Investors Securities Trust
Notes to Statements of Investments (unaudited)
  Level 1 Level 2 Level 3 Total
Franklin Managed Income Fund (continued)
Liabilities:        
Other Financial Instruments:        
Options Written
$3,110,000 $— $— $3,110,000
Franklin Real Return Fund
Assets:        
Investments in Securities:a        
Equity Investmentsb
$39,583,271 $— $— $39,583,271
U.S. Government and Agency Securities
— 121,884,388 — 121,884,388
Short Term Investments
— 7,525,772 — 7,525,772
Total Investments in Securities
$39,583,271 $129,410,160 $ — $168,993,431
Franklin Total Return Fund
Assets:        
Investments in Securities:a        
Equity Investments:b        
Consumer Services
$— $— $34,113 $34,113
Materials
113,906 — 149,013 262,919
Retailing
— — 22,009 22,009
All Other Equity Investments
293,410,734 — — 293,410,734
 Corporate Bonds:        
Retailing
— 36,217,797 8,148 36,225,945
All Other Corporate Bonds
— 908,620,952 — 908,620,952
 Senior Floating Rate Interests:        
Household & Personal Products
— — 1,670,398 1,670,398
All Other Senior Floating Rate Interests
— 178,492,713 — 178,492,713
Foreign Government and Agency Securities
— 261,418,467 — 261,418,467
U.S. Government and Agency Securities
— 697,418,519 — 697,418,519
Asset-Backed Securities and Commercial Mortgage-Backed Securities:        
Banks
— 18,403,077 10,542 18,413,619
All Other Asset-Backed Securities and Commercial Mortgage-Backed Securities
— 1,300,021,792 — 1,300,021,792
Mortgage-Backed Securities
— 997,256,376 — 997,256,376
Municipal Bonds
— 83,632,687 — 83,632,687
Escrows and Litigation Trusts
— — —c —
Short Term Investments
59,172,106 — — 59,172,106
Total Investments in Securities
$352,696,746 $4,481,482,380 $1,894,223 $4,836,073,349
Other Financial Instruments:        
Futures Contracts
$9,879,374 $— $— $9,879,374
Forward Exchange Contracts
— 5,418,272 — 5,418,272
Swap Contracts
— 5,239,570 — 5,239,570
Total Other Financial Instruments
$9,879,374 $10,657,842 $ — $20,537,216
  |  111
Franklin Investors Securities Trust
Notes to Statements of Investments (unaudited)
10.  FAIR VALUE MEASUREMENTS (continued)
  Level 1 Level 2 Level 3 Total
Franklin Total Return Fund (continued)
Liabilities:        
Other Financial Instruments:        
Futures Contracts
$454,624 $— $— $454,624
Forward Exchange Contracts
— 1,607,397 — 1,607,397
Swap Contracts
— 3,214,702 — 3,214,702
Total Other Financial Instruments
$454,624 $4,822,099 $ — $5,276,723
 
aFor detailed categories, see the accompanying Statement of Investments.
bIncludes common, preferred, convertible preferred stocks and management investment companies as well as other equity interests.
cIncludes securities determined to have no value at July 31, 2019.
A reconciliation of assets in which Level 3 inputs are used in determining fair value is presented when there are significant Level 3 financial instruments at the beginning and/or end of the period. The reconciliation of assets for the nine months ended July 31, 2019, is as follows:
  Balance at
Beginning of
Period 		Purchases Sales Transfer
Into
Level 3a 		Transfer
Out of
Level 3b 		Cost Basis
Adjustmentsc 		Net
Realized
Gain
(Loss) 		Net
Unrealized
Appreciation
(Depreciation) 		Balance
at End
of Period 		Net Change in
Unrealized
Appreciation
(Depreciation)
on Assets
Held at
Period End
Franklin Floating Rate Daily Access Fund                
Assets:                    
Investments in Securities:                    
Equity Investments:d                    
Diversified Support Services
$18,876,774e $— $— $— $(1,458,043) $— $— $(17,418,731) $— $—
Forest Products
11,581,914 1,189,036 — — — — — 1,177,636 13,948,586 1,177,636
Senior Floating Rate Interests:                    
Oil & Gas Exploration & Production
— — (2,255,593) 18,553,268 — 46,474 11,113 2,204,132 18,559,394 2,204,132
Personal Products
45,928,772 11,146,386 — — — 2,080,609 — (456,875) 58,698,892 (456,875)
Escrows and Litigation Trusts
— —e,f — — — — — — —e —
Total Investments in Securities
$76,387,460 $12,335,422 $(2,255,593) $18,553,268 $(1,458,043) $2,127,083 $11,113 $(14,493,838) $91,206,872 $2,924,893
aThe investment was transferred into Level 3 as a result of the unavailability of a quoted market price in an active market for identical securities and other significant observable valuation inputs.
bThe investments were transferred out of Level 3 as a result of the availability of a quoted price in an active market for identical securities and other significant observable valuation inputs. May include amounts related to a corporate action.
cMay include accretion, amortization, partnership adjustments, and/or other cost basis adjustments.
dIncludes common stocks and other equity interests.
eIncludes securities determined to have no value.
fIncludes securities received as a result of an in-kind transfer.
  |  112
Franklin Investors Securities Trust
Notes to Statements of Investments (unaudited)
Significant unobservable valuation inputs for material Level 3 financial instruments and impact to fair value as a result of changes in unobservable valuation inputs as of July 31, 2019, are as follows:
Description Fair Value at
End of Period 		Valuation Technique Unobservable Input Amount/Range
(Weighted
Averagea) 		Impact to Fair
Value if Input
Increasesb
Franklin Floating Rate Daily Access
Fund 		         
Assets:          
Investments in Securities:          
Equity Investments:          
Forest Products
$13,948,586 Discounted cash
flow 		Weighted average cost of capital 17.5% Decreasec
    Total unlevered free
cashflows 		$158.4 mil Increasec
  Discount for lack of
marketability 		20.0% Decreased
    Long term growth 0.5% Increase
Senior Floating Rate Interests:          
Personal Products
$58,698,892 Discounted cash
flow 		Discount rate 11.0% - 11.9%
(11.7%) 		Decrease
      Free cash flow $16.0 - $60.3 mil
($50.2) mil 		Increasec
All other investmentse
18,559,394f,g        
Total
$91,206,872        
aWeighted based on the relative fair value of the financial instruments.
bRepresents the directional change in the fair value of the Level 3 financial instruments that would result from a significant and reasonable increase in the corresponding input. A significant and reasonable decrease in the input would have the opposite effect. Significant impacts, if any, to fair value and/or net assets have been indicated.
cRepresents a significant impact to fair value and net assets.
dRepresents a significant impact to fair value but not net assets.
eIncludes fair value of immaterial financial instruments developed using various valuation techniques and unobservable inputs. May also include financial instruments with values derived using private transaction prices or non-public third party pricing information which is unobservable.
fIncludes securities determined to have no value at July 31, 2019.
gIncludes security determined to be Level 3, but not fair valued due to single source vendor price at July 31, 2019. 
11.  SUBSEQUENT EVENTS
The Funds have evaluated subsequent events through the issuance of the Statements of Investments and determined that no events have occurred that require disclosure. 
  |  113
Franklin Investors Securities Trust
Notes to Statements of Investments (unaudited)
Abbreviations    
Counterparty/Exchange
BNDP BNP Paribas SA
BZWS Barclays Bank PLC
CITI Citigroup, Inc.
CME Chicago Mercantile Exchange
DBAB Deutsche Bank AG
FBCO Credit Suisse Group AG
GSCO The Goldman Sachs Group, Inc.
JPHQ JP Morgan Chase & Co.
MSCO Morgan Stanley
Currency
BRL Brazilian Real
CAD Canadian Dollar
COP Colombian Peso
DOP Dominican Peso
EUR Euro
JPY Japanese Yen
USD United States Dollar
UYU Uruguayan Peso
ZAR South Africa C Rand
  
Selected Portfolio
ADR American Depositary Receipt
AGMC Assured Guaranty Municipal Corp.
ARM Adjustable Rate Mortgage
BZDIOVRA Brazil Cetip DI Interbank Deposit Rate
CLO Collateralized Loan Obligation
CMT Constant Maturity Treasury Index
COF Cost of Funds
CPI Consumer Price Index
ETF Exchange Traded Fund
FRN Floating Rate Note
GDP Gross Domestic Product
GNMA Government National Mortgage Association
GO General Obligation
IO Interest Only
LIBOR London InterBank Offered Rate
MBS Mortgage-Backed Security
MFM Multi-Family Mortgage
NA North American
PIK Payment-In-Kind
RDA Redevelopment Agency/Authority
REIT Real Estate Investment Trust
SF Single Family
SPDR S&P Depositary Receipt
T-Bill Treasury Bill
T-Note Treasury Note
VRI Value Recovery Instruments
 
Index
CDX.NA.HY.Series number CDX North America High Yield Index
CDX.NA.IG.Series number CDX North America Investment Grade Index
ITRX.EUR.XOVER.Series number iTraxx Europe Crossover Index
MCDX.NA.Series number MCDX North America Index
For additional information on the Funds’ significant accounting policies, please refer to the Funds’ most recent semiannual or annual shareholder report.
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