Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited),

January

31,

2021

Franklin

Adjustable

U.S.

Government

Securities

Fund

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

1

a

a

Principal

Amount

a

Value

a

a

a

a

a

Commercial

Mortgage-Backed

Securities

7.8%

Diversified

Financial

Services

0.2%

a

GNMA

,

2010-12

,

FD

,

FRN

,

0.729

%

,

(

1-month

USD

LIBOR

+

0.6

%

),

1/16/40

.......

$

956,950

$

966,429

Thrifts

&

Mortgage

Finance

7.6%

a

FHLMC

,

4988,

AF,

FRN,

0.505%,

(1-month

USD

LIBOR

+

0.35%),

10/15/37

.............

9,646,459

9,696,200

343,

F4,

FRN,

0.505%,

Strip,

(1-month

USD

LIBOR

+

0.35%),

10/15/37

.........

9,845,194

9,910,539

4197,

KF,

FRN,

0.455%,

(1-month

USD

LIBOR

+

0.3%),

9/15/37

..............

4,289,775

4,313,861

4845,

QF,

FRN,

0.426%,

(1-month

USD

LIBOR

+

0.3%),

12/15/48

.............

8,713,384

8,727,559

4730,

WF,

FRN,

0.505%,

(1-month

USD

LIBOR

+

0.35%),

8/15/38

.............

7,730,161

7,761,474

a

FNMA

,

2019-38,

CF,

FRN,

0.58%,

(1-month

USD

LIBOR

+

0.45%),

7/25/49

............

2,535,069

2,554,852

2020-54,

WF,

FRN,

0.605%,

(1-month

USD

LIBOR

+

0.45%),

8/25/50

..........

11,509,699

11,602,978

54,567,463

a

a

a

a

a

Total

Commercial

Mortgage-Backed

Securities

(Cost

$55,440,488)

................

55,533,892

Mortgage-Backed

Securities

83.3%

b

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Adjustable

Rate

13.5%

FHLMC,

2.008%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

9/01/35

..............

3,415,147

3,568,708

FHLMC,

2.718%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

11/01/40

.............

2,426,635

2,565,873

FHLMC,

2.718%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

7/01/43

..............

5,062,557

5,314,568

FHLMC,

2.869%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

9/01/37

..............

9,544,237

10,110,347

FHLMC,

2.913%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

7/01/43

..............

4,912,417

5,131,538

FHLMC,

2.953%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

5/01/45

..............

4,299,239

4,472,183

FHLMC,

3.338%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

1/01/37

..............

2,258,624

2,434,089

FHLMC,

3.375%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

7/01/35

..............

4,278,094

4,531,536

FHLMC,

3.539%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

6/01/37

..............

4,165,425

4,440,863

FHLMC,

1.843%

-

3.905%,

(6-month

USD

LIBOR

+/-

MBS

Margin),

8/01/33

-

11/01/41

51,653,056

54,320,699

96,890,404

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Fixed

Rate

10.6%

FHLMC

Pool,

15

Year,

2%,

12/01/35

.....................................

27,820,348

29,094,681

FHLMC

Pool,

15

Year,

2.5%,

3/01/35

.....................................

23,042,214

24,780,923

FHLMC

Pool,

15

Year,

2.5%,

3/01/35

.....................................

20,538,259

22,069,548

75,945,152

b

Federal

National

Mortgage

Association

(FNMA)

Adjustable

Rate

50.6%

FNMA,

1.755%,

(6-month

USD

LIBOR

+/-

MBS

Margin),

12/01/34

...............

2,726,344

2,836,415

FNMA,

2.117%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

11/01/34

..............

3,028,017

3,188,227

FNMA,

2.231%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

2/01/36

...............

3,551,729

3,724,001

FNMA,

2.246%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

3/01/37

...............

2,398,084

2,528,159

FNMA,

2.273%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

1/01/36

...............

2,393,391

2,518,576

FNMA,

2.335%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

11/01/34

..............

3,394,283

3,579,315

FNMA,

2.43%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

11/01/42

...............

6,068,268

6,407,243

FNMA,

2.467%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

10/01/38

..............

2,408,475

2,541,544

FNMA,

2.487%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

5/01/39

...............

3,510,020

3,679,816

FNMA,

2.5%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

7/01/42

.................

6,210,738

6,556,990

FNMA,

2.509%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

8/01/44

...............

6,095,291

6,383,623

FNMA,

2.516%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

5/01/40

...............

4,754,955

5,004,826

FNMA,

2.618%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

4/01/40

...............

5,939,132

6,272,676

FNMA,

2.638%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

3/01/41

...............

2,745,778

2,885,616

FNMA,

2.668%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

5/01/38

...............

2,609,692

2,755,236

FNMA,

2.684%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

4/01/44

...............

5,105,297

5,360,288

FNMA,

2.712%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

10/01/38

..............

4,965,174

5,245,303

FNMA,

2.743%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

9/01/42

...............

4,218,871

4,436,563

FNMA,

2.796%,

(1-year

CMT

T-Note

+/-

MBS

Margin),

5/01/36

.................

9,685,568

10,238,429

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Adjustable

U.S.

Government

Securities

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

2

See

Abbreviations

on

page

117

.

a

a

Principal

Amount

a

Value

a

a

a

a

a

Mortgage-Backed

Securities

(continued)

b

Federal

National

Mortgage

Association

(FNMA)

Adjustable

Rate

(continued)

FNMA,

2.849%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

1/01/37

...............

$

2,590,693

$

2,737,645

FNMA,

2.853%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

2/01/43

...............

4,898,202

5,145,238

FNMA,

2.903%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

3/01/35

...............

4,488,395

4,731,501

FNMA,

2.906%,

(1-year

CMT

T-Note

+/-

MBS

Margin),

1/01/38

.................

2,560,256

2,708,871

FNMA,

3.002%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

1/01/39

...............

3,184,699

3,353,468

FNMA,

3.049%,

(COFI

11th

District

+/-

MBS

Margin),

4/01/34

..................

11,398,252

11,932,540

FNMA,

3.059%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

7/01/42

...............

4,765,241

5,016,028

FNMA,

0.865%

-

6.75%,

(1-month

USD

LIBOR

+/-

MBS

Margin),

6/01/21

-

5/01/48

..

232,565,181

240,766,475

362,534,612

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

8.5%

FNMA,

15

Year,

2%,

10/01/35

..........................................

19,226,018

20,106,681

FNMA,

15

Year,

2%,

12/01/35

..........................................

27,835,804

29,110,845

FNMA,

15

Year,

2.5%,

3/01/35

.........................................

11,364,126

12,207,584

61,425,110

b

Government

National

Mortgage

Association

(GNMA)

Adjustable

Rate

0.1%

GNMA

II,

2.125%

-

3%,

(1-year

CMT

T-Note

+/-

MBS

Margin),

9/20/33

-

5/20/36

....

461,254

474,624

474,624

Total

Mortgage-Backed

Securities

(Cost

$595,860,401)

...........................

597,269,902

Total

Long

Term

Investments

(Cost

$651,300,889)

...............................

652,803,794

a

a

a

a

a

Short

Term

Investments

8.2%

Shares

a

Money

Market

Funds

5.0%

c,d

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

......................

35,778,536

35,778,536

Total

Money

Market

Funds

(Cost

$35,778,536)

..................................

35,778,536

Principal

Amount

Repurchase

Agreements

3.2%

e

Joint

Repurchase

Agreement,

0.04%,

2/01/21

(Maturity

Value

$23,312,711)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$13,783,640)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$4,015,615)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$5,513,456)

Collateralized

by

U.S.

Government

Agency

Securities,

3.5%

-

5%,

11/20/41

-

2/20/50;

U.S.

Treasury

Bonds,

6.25%

-

7.63%,

11/15/22

-

8/15/23;

and

U.S.

Treasury

Note,

1.63%,

11/15/22

(valued

at

$23,785,391)

................................

23,312,633

23,312,633

Total

Repurchase

Agreements

(Cost

$23,312,633)

...............................

23,312,633

Total

Short

Term

Investments

(Cost

$59,091,169

)

................................

59,091,169

a

Total

Investments

(Cost

$710,392,058)

99.3%

...................................

$711,894,963

Other

Assets,

less

Liabilities

0.7%

.............................................

4,853,320

Net

Assets

100.0%

...........................................................

$716,748,283

a

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Adjustable

U.S.

Government

Securities

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

3

b

Adjustable

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).

c

See

Note

9

regarding

investments

in

affiliated

management

investment

companies.

d

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

e

Investment

is

through

participation

in

a

joint

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager.

At

January

31,

2021,

all

repurchase

agreements

had

been

entered

into

on

January

29,

2021.

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited),

January

31,

2021

Franklin

Convertible

Securities

Fund

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

4

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

0.9%

Multi-Utilities

0.8%

Sempra

Energy

.......................................

United

States

333,540

$

41,278,910

Software

0.1%

a

DocuSign,

Inc.

.......................................

United

States

10,831

2,522,432

Total

Common

Stocks

(Cost

$46,653,745)

......................................

43,801,342

Convertible

Preferred

Stocks

19.2%

Auto

Components

1.6%

Aptiv

plc,

5.5%,

A

.....................................

United

States

530,000

82,388,500

Capital

Markets

1.6%

KKR

&

Co.,

Inc.,

6%,

C

.................................

United

States

1,360,000

79,111,200

Chemicals

1.0%

International

Flavors

&

Fragrances,

Inc.,

6%

.................

United

States

1,192,242

50,086,086

Electric

Utilities

3.6%

American

Electric

Power

Co.,

Inc.,

6.125%

..................

United

States

440,000

20,996,800

b

American

Electric

Power

Co.,

Inc.,

6.125%

..................

United

States

600,000

29,610,000

b

NextEra

Energy,

Inc.,

5.279%

............................

United

States

1,100,000

58,784,000

PG&E

Corp.,

5.5%

....................................

United

States

430,000

49,045,800

Southern

Co.

(The),

6.75%,

2019

.........................

United

States

550,000

27,060,000

185,496,600

Food

Products

1.3%

Bunge

Ltd.,

4.875%

...................................

United

States

630,000

68,260,500

Gas

Utilities

0.3%

South

Jersey

Industries,

Inc.,

7.25%

.......................

United

States

360,000

14,122,800

Health

Care

Equipment

&

Supplies

2.1%

Danaher

Corp.,

4.75%,

A

................................

United

States

54,000

87,496,200

Danaher

Corp.,

5%,

B

..................................

United

States

14,045

19,264,122

106,760,322

Health

Care

Technology

0.5%

Change

Healthcare,

Inc.,

6%

.............................

United

States

300,000

24,246,000

Life

Sciences

Tools

&

Services

1.5%

Avantor

,

Inc.,

6.25%,

A

.................................

United

States

820,000

75,940,200

Machinery

0.6%

Fortive

Corp.,

5%,

A

...................................

United

States

34,350

32,986,305

Multi-Utilities

1.1%

DTE

Energy

Co.,

6.25%

................................

United

States

800,000

37,104,000

b

Sempra

Energy,

6.75%,

B

...............................

United

States

206,000

21,086,160

58,190,160

Semiconductors

&

Semiconductor

Equipment

2.0%

Broadcom,

Inc.,

8%,

A

..................................

United

States

71,100

104,428,125

Water

Utilities

0.9%

b

Essential

Utilities,

Inc.,

6%

..............................

United

States

770,000

45,468,500

Wireless

Telecommunication

Services

1.1%

a,c

2020

Cash

Mandatory

Exchangeable

Trust,

144A,

5.25%

.......

United

States

48,000

55,266,240

a

Total

Convertible

Preferred

Stocks

(Cost

$828,037,416)

..........................

982,751,538

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Convertible

Securities

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

5

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Convertible

Bonds

77.9%

Biotechnology

2.9%

Intercept

Pharmaceuticals,

Inc.

,

Senior

Note

,

2

%

,

5/15/26

.......

United

States

21,000,000

$

14,932,803

Neurocrine

Biosciences,

Inc.

,

Senior

Note

,

2.25

%

,

5/15/24

......

United

States

44,750,000

67,355,697

c

PTC

Therapeutics,

Inc.

,

Senior

Note

,

144A,

1.5

%

,

9/15/26

.......

United

States

48,000,000

63,750,287

146,038,787

Communications

Equipment

1.5%

Viavi

Solutions,

Inc.

,

Senior

Note,

1.75%,

6/01/23

...........................

United

States

40,969,000

51,933,655

Senior

Note,

1%,

3/01/24

.............................

United

States

20,000,000

26,478,809

78,412,464

Energy

Equipment

&

Services

0.4%

Oil

States

International,

Inc.

,

Senior

Note

,

1.5

%

,

2/15/23

........

United

States

28,000,000

22,941,126

Entertainment

3.8%

iQIYI

,

Inc.

,

Senior

Note,

3.75%,

12/01/23

..........................

China

40,000,000

44,210,669

Senior

Note,

2%,

4/01/25

.............................

China

26,000,000

24,911,250

c

Sea

Ltd.

,

Senior

Note

,

144A,

2.375

%

,

12/01/25

...............

Taiwan

34,000,000

84,893,750

c

Zynga,

Inc.

,

Senior

Note

,

144A,

Zero

Cpn

.,

12/15/26

...........

United

States

37,000,000

39,590,000

193,605,669

Equity

Real

Estate

Investment

Trusts

(REITs)

0.5%

Pebblebrook

Hotel

Trust

,

Senior

Note

,

1.75

%

,

12/15/26

.........

United

States

26,000,000

27,796,105

Health

Care

Equipment

&

Supplies

3.3%

c

DexCom

,

Inc.

,

Senior

Note

,

144A,

0.25

%

,

11/15/25

............

United

States

79,000,000

80,745,960

Insulet

Corp.

,

Senior

Note

,

0.375

%

,

9/01/26

.................

United

States

65,000,000

89,599,282

170,345,242

Health

Care

Providers

&

Services

0.5%

c

Guardant

Health,

Inc.

,

Senior

Note

,

144A,

Zero

Cpn

.,

11/15/27

...

United

States

20,000,000

26,715,547

Hotels,

Restaurants

&

Leisure

1.0%

c

Vail

Resorts,

Inc.

,

Senior

Note

,

144A,

Zero

Cpn

.,

1/01/26

........

United

States

48,000,000

48,600,000

Insurance

1.6%

c

AXA

SA

,

Senior

Note

,

144A,

7.25

%

,

5/15/21

.................

France

71,500,000

80,936,295

Interactive

Media

&

Services

4.1%

Snap,

Inc.

,

Senior

Note

,

0.75

%

,

8/01/26

....................

United

States

32,300,000

77,384,521

Weibo

Corp.

,

Senior

Note

,

1.25

%

,

11/15/22

..................

China

63,000,000

60,637,500

Zillow

Group,

Inc.

,

Senior

Note

,

2.75

%

,

5/15/25

...............

United

States

34,500,000

72,363,750

210,385,771

Internet

&

Direct

Marketing

Retail

8.9%

Booking

Holdings,

Inc.

,

Senior

Note,

0.9%,

9/15/21

............................

United

States

37,500,000

40,959,494

c

Senior

Note,

144A,

0.75%,

5/01/25

......................

United

States

19,000,000

25,922,751

c

Etsy,

Inc.

,

Senior

Note

,

144A,

0.125

%

,

9/01/27

...............

United

States

80,000,000

106,522,026

MercadoLibre

,

Inc.

,

Senior

Note

,

2

%

,

8/15/28

................

Argentina

20,000,000

81,427,134

Pinduoduo

,

Inc.

,

Senior

Note

,

Zero

Cpn

.,

12/01/25

............

China

93,000,000

112,049,014

c

Wayfair,

Inc.

,

Senior

Note

,

144A,

0.625

%

,

10/01/25

............

United

States

85,000,000

87,041,795

453,922,214

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Convertible

Securities

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

6

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Convertible

Bonds

(continued)

IT

Services

8.0%

Okta

,

Inc.

,

Senior

Note

,

0.125

%

,

9/01/25

....................

United

States

73,000,000

$

110,524,560

c

Repay

Holdings

Corp.

,

Senior

Note

,

144A,

Zero

Cpn

.,

2/01/26

....

United

States

19,000,000

19,058,427

c

Shift4

Payments,

Inc.

,

Senior

Note

,

144A,

Zero

Cpn

.,

12/15/25

...

United

States

36,000,000

41,374,532

c

Square,

Inc.

,

Senior

Note,

144A,

Zero

Cpn

.,

5/01/26

...................

United

States

39,500,000

44,440,100

Senior

Note,

144A,

0.25%,

11/01/27

.....................

United

States

45,000,000

50,998,128

Twilio

,

Inc.

,

Senior

Note

,

0.25

%

,

6/01/23

....................

United

States

12,500,000

63,438,300

Wix.com

Ltd.

,

Senior

Note

,

Zero

Cpn

.,

7/01/23

...............

Israel

42,500,000

77,668,750

407,502,797

Life

Sciences

Tools

&

Services

1.9%

Illumina,

Inc.

,

Senior

Note,

0.5%,

6/15/21

............................

United

States

32,500,000

54,371,587

b

Senior

Note,

Zero

Cpn

.,

8/15/23

........................

United

States

25,750,000

31,196,100

NeoGenomics

,

Inc.

,

Senior

Note

,

0.25

%

,

1/15/28

.............

United

States

9,500,000

10,248,967

95,816,654

Machinery

0.8%

Fortive

Corp.

,

Senior

Note

,

0.875

%

,

2/15/22

.................

United

States

40,270,000

40,973,589

Media

2.7%

c

Liberty

Broadband

Corp.

,

Senior

Bond,

144A,

1.25%,

9/30/50

......................

United

States

57,000,000

57,114,000

Senior

Bond,

144A,

2.75%,

9/30/50

......................

United

States

34,500,000

35,579,643

Liberty

Media

Corp.

,

Senior

Bond,

2.25%,

9/30/46

...........................

United

States

37,000,000

17,553,675

Senior

Note,

1.375%,

10/15/23

.........................

United

States

21,200,000

26,050,474

136,297,792

Pharmaceuticals

2.3%

Jazz

Investments

I

Ltd.

,

Senior

Note,

1.5%,

8/15/24

............................

United

States

39,750,000

42,152,227

c

Senior

Note,

144A,

2%,

6/15/26

........................

United

States

35,000,000

44,425,144

c

Revance

Therapeutics,

Inc.

,

Senior

Note

,

144A,

1.75

%

,

2/15/27

..

United

States

27,000,000

28,950,251

115,527,622

Road

&

Rail

2.3%

c

Lyft,

Inc.

,

Senior

Note

,

144A,

1.5

%

,

5/15/25

..................

United

States

61,000,000

84,503,031

c

Uber

Technologies,

Inc.

,

Senior

Note

,

144A,

Zero

Cpn

.,

12/15/25

..

United

States

30,000,000

31,419,875

115,922,906

Semiconductors

&

Semiconductor

Equipment

4.0%

Inphi

Corp.

,

Senior

Note,

0.75%,

9/01/21

...........................

United

States

7,600,000

22,557,526

c

Senior

Note,

144A,

0.75%,

4/15/25

......................

United

States

4,000,000

5,817,042

Microchip

Technology,

Inc.

,

Senior

Sub.

Bond

,

1.625

%

,

2/15/27

...

United

States

44,750,000

89,578,743

c

Silicon

Laboratories,

Inc.

,

Senior

Note

,

144A,

0.625

%

,

6/15/25

...

United

States

68,000,000

88,171,471

206,124,782

Software

24.3%

Alteryx,

Inc.

,

Senior

Note,

0.5%,

8/01/24

............................

United

States

25,000,000

26,634,287

Senior

Note,

1%,

8/01/26

.............................

United

States

23,000,000

24,675,185

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Convertible

Securities

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

7

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Convertible

Bonds

(continued)

Software

(continued)

Atlassian

,

Inc.

,

Senior

Note

,

0.625

%

,

5/01/23

................

United

States

26,500,000

$

75,254,056

c

Bill.com

Holdings,

Inc.

,

Senior

Note

,

144A,

Zero

Cpn

.,

12/01/25

...

United

States

66,000,000

72,296,962

Blackline,

Inc.

,

Senior

Note

,

0.125

%

,

8/01/24

.................

United

States

9,500,000

17,421,733

c

Coupa

Software,

Inc.

,

Senior

Note

,

144A,

0.375

%

,

6/15/26

......

United

States

74,000,000

95,890,806

c

DocuSign,

Inc.

,

Senior

Note

,

144A,

Zero

Cpn

.,

1/15/24

.........

United

States

76,000,000

79,847,500

Envestnet

,

Inc.

,

Senior

Note,

1.75%,

6/01/23

...........................

United

States

51,500,000

65,957,165

c

Senior

Note,

144A,

0.75%,

8/15/25

......................

United

States

11,500,000

11,737,732

Guidewire

Software,

Inc.

,

Senior

Note

,

1.25

%

,

3/15/25

.........

United

States

44,000,000

53,559,147

c

HubSpot

,

Inc.

,

Senior

Note

,

144A,

0.375

%

,

6/01/25

............

United

States

68,000,000

101,481,396

Palo

Alto

Networks,

Inc.

,

Senior

Note

,

0.75

%

,

7/01/23

..........

United

States

43,000,000

61,075,253

Pluralsight

,

Inc.

,

Senior

Note

,

0.375

%

,

3/01/24

...............

United

States

39,000,000

38,558,657

c

Q2

Holdings,

Inc.

,

Senior

Note

,

144A,

0.125

%

,

11/15/25

........

United

States

56,000,000

63,420,050

RealPage

,

Inc.

,

Senior

Note,

1.5%,

11/15/22

...........................

United

States

35,850,000

74,345,953

Senior

Note,

1.5%,

5/15/25

............................

United

States

18,750,000

24,097,474

ServiceNow

,

Inc.

,

Senior

Note

,

Zero

Cpn

.,

6/01/22

.............

United

States

19,000,000

76,544,857

Splunk

,

Inc.

,

Senior

Note,

1.125%,

9/15/25

..........................

United

States

22,500,000

29,895,087

c

Senior

Note,

144A,

1.125%,

6/15/27

.....................

United

States

6,500,000

6,843,049

Workday,

Inc.

,

Senior

Note

,

0.25

%

,

10/01/22

.................

United

States

57,500,000

92,389,246

Workiva

,

Inc.

,

Senior

Note

,

1.125

%

,

8/15/26

.................

United

States

22,000,000

30,809,686

c

Zendesk

,

Inc.

,

Senior

Note

,

144A,

0.625

%

,

6/15/25

............

United

States

80,000,000

118,531,874

1,241,267,155

Specialty

Retail

3.1%

c

Burlington

Stores,

Inc.

,

Senior

Note

,

144A,

2.25

%

,

4/15/25

......

United

States

53,000,000

71,193,170

RH

,

Senior

Note,

Zero

Cpn

.,

6/15/23

........................

United

States

13,000,000

32,230,193

c

Senior

Note,

144A,

Zero

Cpn

.,

9/15/24

...................

United

States

24,000,000

55,149,005

158,572,368

Total

Convertible

Bonds

(Cost

$2,974,621,115)

..................................

3,977,704,885

Shares

Escrows

and

Litigation

Trusts

0.0%

a,d

Motors

Liquidation

Co.,

Escrow

Account

....................

United

States

376,200

—

Total

Escrows

and

Litigation

Trusts

(Cost

$–)

...................................

—

Total

Long

Term

Investments

(Cost

$3,849,312,276)

.............................

5,004,257,765

a

Short

Term

Investments

2.3%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

2.0%

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

........

United

States

103,641,476

103,641,476

Total

Money

Market

Funds

(Cost

$103,641,476)

.................................

103,641,476

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Convertible

Securities

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

8

See

Abbreviations

on

page

117

.

Short

Term

Investments

(continued)

a

a

Country

Shares

a

Value

a

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.3%

a

a

a

a

a

Money

Market

Funds

0.1%

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

........

United

States

3,403,000

$

3,403,000

Principal

Amount

*

Repurchase

Agreements

0.2%

g

Joint

Repurchase

Agreement,

J.P.

Morgan

Securities

LLC,

0.04%,

2/01/21

(Maturity

Value

$6,473,981)

Collateralized

by

U.S.

Treasury

Notes,

2%

-

2.5%,

8/31/21

-

1/31/24

(valued

at

$6,603,438)

..........................

6,473,959

6,473,959

Repurchase

Agreement,

BofA

Securities,

Inc.,

0.04%,

2/01/21

(Maturity

Value

$3,752,439)

Collateralized

by

U.S.

Treasury

Note,

1.5%,

9/30/24

(valued

at

$0)

3,752,426

3,752,426

Total

Repurchase

Agreements

(Cost

$10,226,385)

.............................................

10,226,385

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$13,629,385)

...........................................................

13,629,385

Total

Short

Term

Investments

(Cost

$117,270,861

)

...............................

117,270,861

a

Total

Investments

(Cost

$3,966,583,137)

100.3%

................................

$5,121,528,626

Other

Assets,

less

Liabilities

(0.3)%

...........................................

(12,654,244)

Net

Assets

100.0%

...........................................................

$5,108,874,382

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Non-income

producing.

b

A

portion

or

all

of

the

security

is

on

loan

at

January

31,

2021.

c

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

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.

Regulation

S

securities

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.

At

January

31,

2021,

the

aggregate

value

of

these

securities

was

$1,908,227,839,

representing

37.4%

of

net

assets.

d

Fair

valued

using

significant

unobservable

inputs.

See

Note

11

regarding

fair

value

measurements.

e

See

Note

9

regarding

investments

in

affiliated

management

investment

companies.

f

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

g

Investment

is

through

participation

in

a

joint

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager.

At

January

31,

2021,

all

repurchase

agreements

had

been

entered

into

on

January

29,

2021.

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited),

January

31,

2021

Franklin

Equity

Income

Fund

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

9

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

82.1%

Aerospace

&

Defense

3.7%

Lockheed

Martin

Corp.

.................................

United

States

82,000

$

26,389,240

Raytheon

Technologies

Corp.

............................

United

States

1,128,500

75,304,805

101,694,045

Air

Freight

&

Logistics

2.2%

United

Parcel

Service,

Inc.,

B

............................

United

States

385,000

59,675,000

Banks

10.7%

Bank

of

America

Corp.

.................................

United

States

2,695,000

79,906,750

Citigroup,

Inc.

........................................

United

States

840,000

48,711,600

JPMorgan

Chase

&

Co.

.................................

United

States

909,500

117,025,365

Truist

Financial

Corp.

..................................

United

States

1,050,000

50,379,000

296,022,715

Beverages

4.1%

Coca-Cola

Co.

(The)

...................................

United

States

1,230,000

59,224,500

PepsiCo,

Inc.

........................................

United

States

404,000

55,174,280

114,398,780

Capital

Markets

6.7%

Apollo

Global

Management,

Inc.

..........................

United

States

657,500

30,205,550

Ares

Management

Corp.

................................

United

States

580,000

26,192,800

BlackRock,

Inc.

.......................................

United

States

49,500

34,712,370

Morgan

Stanley

.......................................

United

States

1,380,500

92,562,525

183,673,245

Chemicals

1.7%

BASF

SE

...........................................

Germany

300,000

23,184,930

Linde

plc

............................................

United

Kingdom

91,500

22,454,100

45,639,030

Commercial

Services

&

Supplies

1.5%

Republic

Services,

Inc.

.................................

United

States

467,000

42,272,840

Communications

Equipment

0.6%

Cisco

Systems,

Inc.

...................................

United

States

374,000

16,672,920

Diversified

Telecommunication

Services

2.6%

TELUS

Corp.

........................................

Canada

645,000

13,311,606

Verizon

Communications,

Inc.

............................

United

States

1,075,000

58,856,250

72,167,856

Electric

Utilities

7.6%

Duke

Energy

Corp.

....................................

United

States

865,000

81,310,000

Entergy

Corp.

........................................

United

States

285,000

27,169,050

NextEra

Energy,

Inc.

...................................

United

States

940,000

76,017,800

Xcel

Energy,

Inc.

......................................

United

States

406,500

26,011,935

210,508,785

Electrical

Equipment

1.6%

Eaton

Corp.

plc

.......................................

United

States

152,500

17,949,250

Emerson

Electric

Co.

..................................

United

States

315,000

24,995,250

42,944,500

Equity

Real

Estate

Investment

Trusts

(REITs)

1.3%

Prologis,

Inc.

.........................................

United

States

240,000

24,768,000

Public

Storage

.......................................

United

States

50,000

11,381,000

36,149,000

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Equity

Income

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

10

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Food

&

Staples

Retailing

1.8%

Walmart,

Inc.

........................................

United

States

362,500

$

50,927,625

Food

Products

0.5%

Nestle

SA

...........................................

Switzerland

119,500

13,394,790

Health

Care

Equipment

&

Supplies

3.0%

Baxter

International,

Inc.

................................

United

States

90,000

6,914,700

Medtronic

plc

........................................

United

States

677,000

75,370,410

82,285,110

Health

Care

Providers

&

Services

1.6%

HCA

Healthcare,

Inc.

...................................

United

States

25,500

4,143,240

UnitedHealth

Group,

Inc.

................................

United

States

120,500

40,196,390

44,339,630

Hotels,

Restaurants

&

Leisure

1.7%

McDonald's

Corp.

.....................................

United

States

223,000

46,348,320

Household

Products

2.6%

Procter

&

Gamble

Co.

(The)

.............................

United

States

560,000

71,797,600

Insurance

0.6%

Arthur

J

Gallagher

&

Co.

................................

United

States

145,000

16,734,450

IT

Services

0.2%

Visa,

Inc.,

A

..........................................

United

States

35,500

6,860,375

Machinery

0.8%

Illinois

Tool

Works,

Inc.

.................................

United

States

60,500

11,749,705

Stanley

Black

&

Decker,

Inc.

.............................

United

States

51,780

8,983,312

20,733,017

Media

1.9%

Comcast

Corp.,

A

.....................................

United

States

1,085,000

53,783,450

Multiline

Retail

2.6%

Target

Corp.

.........................................

United

States

392,500

71,109,225

Oil,

Gas

&

Consumable

Fuels

4.2%

Canadian

Natural

Resources

Ltd.

.........................

Canada

715,000

16,144,700

Chevron

Corp.

.......................................

United

States

612,500

52,185,000

Royal

Dutch

Shell

plc,

ADR,

A

............................

Netherlands

780,000

28,774,200

Suncor

Energy,

Inc.

....................................

Canada

1,120,000

18,737,600

115,841,500

Personal

Products

0.5%

Unilever

plc,

ADR

.....................................

United

Kingdom

232,500

13,564,050

Pharmaceuticals

6.0%

Johnson

&

Johnson

...................................

United

States

555,500

90,618,715

Merck

&

Co.,

Inc.

.....................................

United

States

425,000

32,754,750

Pfizer,

Inc.

...........................................

United

States

1,145,000

41,105,500

164,478,965

Road

&

Rail

2.0%

Norfolk

Southern

Corp.

.................................

United

States

238,000

56,315,560

Semiconductors

&

Semiconductor

Equipment

3.0%

Analog

Devices,

Inc.

...................................

United

States

165,000

24,309,450

Broadcom,

Inc.

.......................................

United

States

43,500

19,596,750

Texas

Instruments,

Inc.

.................................

United

States

233,000

38,605,770

82,511,970

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Equity

Income

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

11

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Software

1.8%

Microsoft

Corp.

.......................................

United

States

186,000

$

43,144,560

Oracle

Corp.

.........................................

United

States

107,200

6,478,096

49,622,656

Specialty

Retail

2.1%

Lowe's

Cos.,

Inc.

......................................

United

States

225,000

37,541,250

TJX

Cos.,

Inc.

(The)

...................................

United

States

340,000

21,773,600

59,314,850

Technology

Hardware,

Storage

&

Peripherals

0.9%

Apple,

Inc.

..........................................

United

States

186,000

24,544,560

Total

Common

Stocks

(Cost

$1,567,362,209)

....................................

2,266,326,419

Equity-Linked

Securities

9.5%

Banks

0.9%

a

Royal

Bank

of

Canada

into

Bank

of

America

Corp.,

144A,

7.75%,

11/01/21

..........................................

United

States

902,000

24,247,915

Chemicals

1.4%

a

Citigroup

Global

Markets

Holdings,

Inc.

into

Sherwin-Williams

Co.

(The),

Senior

Unsecured

Note,

144A,

6.5%,

7/09/21

..........

United

States

30,200

19,283,828

a

Goldman

Sachs

International

Bank

into

Linde

plc,

144A,

6.5%,

10/25/21

..........................................

United

Kingdom

80,150

19,413,588

38,697,416

Electrical

Equipment

0.5%

a

Royal

Bank

of

Canada

into

Eaton

Corp.

plc,

144A,

7%,

8/30/21

...

United

States

118,600

13,791,959

Equity

Real

Estate

Investment

Trusts

(REITs)

0.7%

a

Royal

Bank

of

Canada

into

Healthpeak

Properties,

Inc.,

144A,

9.5%,

12/01/21

..........................................

United

States

660,000

19,447,584

Food

&

Staples

Retailing

0.7%

a

Citigroup

Global

Markets

Holdings,

Inc.

into

Tesco

plc,

Senior

Unsecured

Note,

144A,

6.5%,

1/10/22

....................

United

Kingdom

149,700

20,597,033

Health

Care

Providers

&

Services

0.7%

a

Royal

Bank

of

Canada

into

HCA

Healthcare,

Inc.,

144A,

7%,

6/30/21

United

States

128,400

20,518,170

Internet

&

Direct

Marketing

Retail

1.2%

a

Wells

Fargo

Bank

NA

into

Amazon.com,

Inc.,

144A,

6%,

4/05/21

..

United

States

14,500

33,929,591

IT

Services

0.5%

a

Credit

Suisse

AG

into

Visa,

Inc.,

144A,

5%,

11/30/21

...........

United

States

70,500

13,591,099

Machinery

0.7%

a

Goldman

Sachs

International

Bank

into

Stanley

Black

&

Decker,

Inc.,

144A,

7%,

2/24/21

...................................

United

States

115,000

19,885,954

Multiline

Retail

0.7%

a

Barclays

Bank

plc

into

Dollar

Tree,

Inc.,

144A,

5.5%,

1/14/22

.....

United

States

185,800

19,032,114

Software

0.8%

a

Barclays

Bank

plc

into

Oracle

Corp.,

144A,

7%,

7/30/21

........

United

States

354,500

21,272,377

Specialty

Retail

0.7%

a

Citigroup

Global

Markets

Holdings,

Inc.

into

TJX

Cos.,

Inc.

(The),

Senior

Unsecured

Note,

144A,

6.5%,

9/14/21

...............

United

States

321,500

19,177,964

Total

Equity-Linked

Securities

(Cost

$254,473,904)

..............................

264,189,176

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Equity

Income

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

12

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Convertible

Preferred

Stocks

7.4%

Health

Care

Equipment

&

Supplies

3.4%

Becton

Dickinson

and

Co.,

6%,

B

.........................

United

States

665,000

$

37,426,200

Boston

Scientific

Corp.,

5.5%,

A

..........................

United

States

110,000

12,018,600

Danaher

Corp.,

4.75%,

A

................................

United

States

24,000

38,887,200

Danaher

Corp.,

5%,

B

..................................

United

States

4,652

6,380,683

94,712,683

Machinery

1.6%

Fortive

Corp.,

5%,

A

...................................

United

States

44,050

42,301,215

Semiconductors

&

Semiconductor

Equipment

1.4%

Broadcom,

Inc.,

8%,

A

..................................

United

States

26,500

38,921,875

Water

Utilities

1.0%

Essential

Utilities,

Inc.,

6%

..............................

United

States

475,000

28,048,750

Total

Convertible

Preferred

Stocks

(Cost

$173,254,914)

..........................

203,984,523

Total

Long

Term

Investments

(Cost

$1,995,091,027)

.............................

2,734,500,118

a

Short

Term

Investments

2.0%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

2.0%

b,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

........

United

States

55,684,306

55,684,306

Total

Money

Market

Funds

(Cost

$55,684,306)

..................................

55,684,306

Total

Short

Term

Investments

(Cost

$55,684,306

)

................................

55,684,306

a

Total

Investments

(Cost

$2,050,775,333)

101.0%

................................

$2,790,184,424

Other

Assets,

less

Liabilities

(1.0)%

...........................................

(29,032,430)

Net

Assets

100.0%

...........................................................

$2,761,151,994

See

Abbreviations

on

page

117

.

a

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

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.

Regulation

S

securities

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.

At

January

31,

2021,

the

aggregate

value

of

these

securities

was

$264,189,176,

representing

9.6%

of

net

assets.

b

See

Note

9

regarding

investments

in

affiliated

management

investment

companies.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited),

January

31,

2021

Franklin

Floating

Rate

Daily

Access

Fund

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

13

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

2.8%

Aerospace

&

Defense

0.0%

a,b,c,d

Remington

Outdoor

Co.,

Inc.

.............................

United

States

1,808,932

$

—

Hotels,

Restaurants

&

Leisure

0.0%

†

b

24

Hour

Fitness

Worldwide,

Inc.

..........................

United

States

287,830

647,618

Machinery

0.8%

b

UTEX

Industries,

Inc.

..................................

United

States

261,340

8,885,560

Oil,

Gas

&

Consumable

Fuels

0.2%

b

Samson

Resources

II

LLC

...............................

United

States

432,778

2,308,005

Paper

&

Forest

Products

1.8%

a,b,c,d

Appvion

Operations,

Inc.

................................

United

States

1,219,956

20,459,260

Road

&

Rail

0.0%

†

a,b

Onsite

Rental

Group

Operations

Pty.

Ltd.

...................

Australia

11,563,612

230,308

Total

Common

Stocks

(Cost

$114,988,392)

.....................................

32,530,751

Management

Investment

Companies

3.6%

Capital

Markets

3.6%

e

Franklin

Floating

Rate

Income

Fund

.......................

United

States

4,630,114

35,281,467

Invesco

Senior

Loan

ETF

...............................

United

States

280,416

6,230,844

41,512,311

Total

Management

Investment

Companies

(Cost

$51,562,905)

....................

41,512,311

Preferred

Stocks

0.2%

Hotels,

Restaurants

&

Leisure

0.2%

b

24

Hour

Fitness

Worldwide,

Inc.

..........................

United

States

681,685

1,758,747

b

Total

Preferred

Stocks

(Cost

$919,936)

.........................................

1,758,747

Warrants

Warrants

0.0%

†

Machinery

0.0%

†

a,b

UTEX

Industries,

Inc.,

2/20/49

............................

United

States

634

1,133

Total

Warrants

(Cost

$—)

.....................................................

1,133

Principal

Amount

*

Corporate

Bonds

3.6%

Airlines

0.6%

f

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.

,

Senior

Secured

Note

,

144A,

4.5

%

,

10/20/25

.....................................

United

States

6,000,000

6,413,853

Construction

Materials

0.4%

f

Cemex

SAB

de

CV

,

Senior

Secured

Bond

,

144A,

5.2

%

,

9/17/30

..

Mexico

3,875,000

4,218,906

Food

Products

0.0%

†

f

Chobani

LLC

/

Chobani

Finance

Corp.,

Inc.

,

Senior

Secured

Note

,

144A,

4.625

%

,

11/15/28

...............................

United

States

400,000

409,000

Hotels,

Restaurants

&

Leisure

0.0%

†

f

International

Game

Technology

plc

,

Senior

Secured

Note

,

144A,

5.25

%

,

1/15/29

.....................................

United

States

500,000

534,552

Household

Durables

0.0%

†

f

Williams

Scotsman

International,

Inc.

,

Senior

Secured

Note

,

144A,

4.625

%

,

8/15/28

.....................................

United

States

500,000

515,938

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Daily

Access

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

14

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Media

0.5%

f

Diamond

Sports

Group

LLC

/

Diamond

Sports

Finance

Co.

,

Senior

Secured

Note

,

144A,

5.375

%

,

8/15/26

....................

United

States

4,600,000

$

3,720,250

f

Univision

Communications,

Inc.

,

Senior

Secured

Note

,

144A,

5.125

%

,

2/15/25

.....................................

United

States

1,555,556

1,566,912

5,287,162

Oil,

Gas

&

Consumable

Fuels

0.2%

f

Cheniere

Energy,

Inc.

,

Senior

Secured

Note

,

144A,

4.625

%

,

10/15/28

..........................................

United

States

2,400,000

2,514,000

Road

&

Rail

1.7%

a,g

Onsite

Rental

Group

Operations

Pty.

Ltd.

,

PIK,

6.1

%

,

10/26/23

...

Australia

21,096,262

19,369,418

Specialty

Retail

0.1%

f

Staples,

Inc.

,

Senior

Secured

Note

,

144A,

7.5

%

,

4/15/26

........

United

States

1,071,000

1,094,123

Wireless

Telecommunication

Services

0.1%

f

Vmed

O2

UK

Financing

I

plc

,

Senior

Secured

Bond

,

144A,

4.25

%

,

1/31/31

...........................................

United

Kingdom

1,430,000

1,430,300

Total

Corporate

Bonds

(Cost

$44,066,882)

......................................

41,787,252

h

Senior

Floating

Rate

Interests

86.4%

Aerospace

&

Defense

1.7%

AI

Convoy

(Luxembourg)

SARL,

Facility

USD

Term

Loan

,

B

,

4.5

%

,

(

6-month

USD

LIBOR

+

3.5

%

),

1/18/27

...................

Luxembourg

3,640,490

3,649,209

g

Alloy

FinCo

Ltd.,

Facility

Term

Loan

,

B

,

14

%

,

PIK,

(

3-month

USD

LIBOR

+

0.5

%

),

3/06/25

...............................

United

Kingdom

16,711,722

8,388,616

Dynasty

Acquisition

Co.,

Inc.,

2020

Term

Loan

,

B1,

3.754%,

(3-month

USD

LIBOR

+

3.5%),

4/06/26

..........

United

States

5,369,642

5,173,650

B2,

3.754%,

(3-month

USD

LIBOR

+

3.5%),

4/06/26

..........

United

States

2,886,904

2,781,532

19,993,007

a

a

a

a

a

a

Airlines

2.8%

Allegiant

Travel

Co.,

Replacement

Term

Loan

,

3.214

%

,

(

3-month

USD

LIBOR

+

3

%

),

2/05/24

............................

United

States

14,558,361

14,263,554

American

Airlines,

Inc.,

2017

Term

Loan

,

B

,

2.127

%

,

(

1-month

USD

LIBOR

+

2

%

),

12/15/23

...............................

United

States

1,979,381

1,847,683

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.,

Initial

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

10/20/27

.................

United

States

4,371,107

4,590,493

Delta

Air

Lines,

Inc.,

Term

Loan

,

5.75

%

,

(

1-month

USD

LIBOR

+

4.75

%

),

12/30/38

....................................

United

States

2,125,798

2,168,580

JetBlue

Airways

Corp.,

Term

Loan

,

6.25

%

,

(

3-month

USD

LIBOR

+

5.25

%

),

6/17/24

.....................................

United

States

1,285,980

1,334,474

Kestrel

Bidco

,

Inc.,

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3

%

),

12/11/26

..........................................

Canada

8,094,159

7,813,899

32,018,683

a

a

a

a

a

a

Auto

Components

3.5%

Adient

US

LLC,

Initial

Term

Loan

,

4.394

%

,

(

1-month

USD

LIBOR

+

4.25%;

3-month

USD

LIBOR

+

4.25%

),

5/06/24

.............

United

States

11,340,726

11,376,166

i

Highline

Aftermarket

Acquisition

LLC,

First

Lien,

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.5

%

),

11/09/27

..................

United

States

2,648,474

2,651,785

Panther

BF

Aggregator

2

LP,

First

Lien,

Initial

Dollar

Term

Loan

,

3.621

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

4/30/26

.............

Canada

12,894,699

12,918,877

TI

Group

Automotive

Systems

LLC,

Initial

US

Term

Loan

(2020)

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

12/16/24

.............

United

States

5,407,965

5,428,244

TRICO

Group

LLC,

First

Lien,

Term

Loan

,

B3

,

8.5

%

,

(

3-month

USD

LIBOR

+

7.5

%

),

2/02/24

...............................

United

States

5,557,798

5,672,427

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Daily

Access

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

15

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

h

Senior

Floating

Rate

Interests

(continued)

Auto

Components

(continued)

i

Truck

Hero,

Inc.,

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

1/31/28

.....................................

United

States

1,788,772

$

1,795,256

39,842,755

a

a

a

a

a

a

Automobiles

0.9%

Thor

Industries,

Inc.,

Initial

USD

Term

Loan

,

3.938

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

2/01/26

..............................

United

States

10,451,927

10,478,057

Banks

0.8%

Finastra

Ltd.,

First

Lien,

Dollar

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

6/13/24

...............................

United

Kingdom

9,749,335

9,597,001

Biotechnology

0.5%

Grifols

Worldwide

Operations

Ltd.,

Dollar

Term

Loan

,

B

,

2.092

%

,

(

1-

week

USD

LIBOR

+

2

%

),

11/15/27

.......................

Ireland

2,286,763

2,285,494

Horizon

Therapeutics

USA,

Inc.,

Seventh

Amendment

Refinancing

Term

Loan

,

2.188

%

,

(

1-month

USD

LIBOR

+

2

%

),

5/22/26

.....

United

States

3,868,143

3,871,063

6,156,557

a

a

a

a

a

a

Capital

Markets

2.0%

i

Citadel

Securities

LP,

Term

Loan

,

B

,

2.615

%

,

(

1-month

USD

LIBOR

+

2.5

%

),

2/29/28

....................................

United

States

4,300,000

4,285,660

Deerfield

Dakota

Holding

LLC,

First

Lien,

Initial

Dollar

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

4/09/27

.............

United

States

5,952,188

5,992,573

i

Jane

Street

Group

LLC,

Term

Loan

,

2.875

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

1/31/28

.....................................

United

States

3,132,825

3,127,797

Russell

Investments

US

Institutional

Holdco,

Inc.,

2025

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3

%

),

5/30/25

.................

United

States

5,412,434

5,414,139

Vertical

Midco

GmbH,

USD

Term

Loan

,

4.567

%

,

(

6-month

USD

LIBOR

+

4.25

%

),

6/30/27

..............................

Germany

4,111,425

4,155,397

22,975,566

a

a

a

a

a

a

Chemicals

1.2%

Cyanco

Intermediate

2

Corp.,

First

Lien,

Initial

Term

Loan

,

3.621

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

3/16/25

...................

United

States

5,468,112

5,476,095

Illuminate

Buyer

LLC,

Term

Loan

,

4.121

%

,

(

1-month

USD

LIBOR

+

4

%

),

6/30/27

.......................................

United

States

1,418,845

1,425,499

i

INEOS

226

Ltd.,

USD

Term

Loan

,

B

,

3.25

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

1/21/26

.....................................

United

Kingdom

1,873,332

1,883,092

i

NIC

Acquisition

Corp.,

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

12/29/27

....................................

United

States

1,354,428

1,361,207

Nouryon

Finance

BV,

Initial

Dollar

Term

Loan

,

Nouryon

Finance

BV

Note

,

3.129

%

,

(

1-month

USD

LIBOR

+

3

%

),

10/01/25

........

Netherlands

1,984,450

1,979,489

Univar

Solutions

USA,

Inc.,

Term

Loan

,

B3

,

2.371

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

7/01/24

..............................

United

States

1,156,001

1,159,307

13,284,689

a

a

a

a

a

a

Commercial

Services

&

Supplies

2.0%

Allied

Universal

Holdco

LLC,

Initial

Term

Loan

,

4.371

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

7/10/26

..........................

United

States

4,543,501

4,551,657

CCI

Buyer,

Inc.,

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

12/17/27

..........................................

United

States

945,672

953,474

Legalzoom.com,

Inc.,

First

Lien,

2018

Term

Loan

,

4.621

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

11/21/24

..........................

United

States

10,266,547

10,285,849

Prime

Security

Services

Borrower

LLC,

First

Lien,

2019

Refinancing

Term

Loan

,

B1

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

9/23/26

United

States

2,250,723

2,253,941

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Daily

Access

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

16

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

h

Senior

Floating

Rate

Interests

(continued)

Commercial

Services

&

Supplies

(continued)

Staples,

Inc.,

2019

Refinancing

New

Term

Loan

,

B1

,

5.214

%

,

(

3-month

USD

LIBOR

+

5

%

),

4/16/26

.....................

United

States

5,314,141

$

5,217,822

23,262,743

a

a

a

a

a

a

Communications

Equipment

1.2%

CommScope

,

Inc.,

Initial

Term

Loan

,

3.371

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

4/06/26

...................................

United

States

13,844,185

13,849,585

Construction

&

Engineering

0.2%

Ply

Gem

Midco

,

Inc.,

Initial

Term

Loan

,

3.876

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

4/12/25

..............................

United

States

1,994,885

2,004,111

Construction

Materials

0.4%

i

Park

River

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

12/28/27

.........................

United

States

1,987,094

1,994,297

White

Cap

Buyer

LLC,

Initial

Closing

Date

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

4

%

),

10/19/27

....................

United

States

2,992,500

3,013,897

5,008,194

a

a

a

a

a

a

Containers

&

Packaging

1.1%

Berry

Global,

Inc.,

Term

Loan

,

Y

,

2.133

%

,

(

1-month

USD

LIBOR

+

2

%

),

7/01/26

.......................................

United

States

2,312,174

2,311,735

BWay

Holding

Co.,

Initial

Term

Loan

,

3.381

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

4/03/24

...................................

United

States

10,491,777

10,321,285

12,633,020

a

a

a

a

a

a

Distributors

1.3%

Resideo

Funding,

Inc.,

Term

Loan

,

A

,

2.51

%

,

(

3-month

USD

LIBOR

+

2.25

%

),

10/25/23

..................................

United

States

15,660,000

15,425,100

Diversified

Consumer

Services

0.8%

KUEHG

Corp.,

Term

Loan

,

B-3

,

4.75

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

2/21/25

.....................................

United

States

5,094,885

4,948,407

Sedgwick

Claims

Management

Services,

Inc.

(Lightning

Cayman

Merger

Sub

Ltd.),

Initial

Term

Loan

,

3.371

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

12/31/25

..................................

United

States

1,691,371

1,683,852

i

WeddingWire

,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.711

%

,

(

2-month

USD

LIBOR

+

4.5%;

3-month

USD

LIBOR

+

4.5%

),

12/19/25

...

United

States

2,400,000

2,362,500

8,994,759

a

a

a

a

a

a

Diversified

Financial

Services

1.1%

First

Eagle

Holdings,

Inc.,

2020

Refinancing

Term

Loan

,

2.754

%

,

(

3-month

USD

LIBOR

+

2.5

%

),

2/01/27

...................

United

States

1,804,511

1,801,831

Jefferies

Finance

LLC,

2020

Term

Loan

,

3.938

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

9/30/27

..............................

United

States

2,992,500

3,003,722

i

Sabre

GLBL,

Inc.,

2020

Other

Term

Loan

,

B

,

4.75

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/17/27

...............................

United

States

325,858

329,729

Verscend

Holding

Corp.,

Term

Loan

,

B

,

4.621

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

8/27/25

...............................

United

States

7,853,733

7,873,368

13,008,650

a

a

a

a

a

a

Diversified

Telecommunication

Services

2.2%

Global

Tel

Link,

First

Lien,

Term

Loan

,

4.371

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

11/29/25

.............................

United

States

11,424,498

10,539,099

Global

Tel

Link,

Second

Lien,

Term

Loan

,

8.371

%

,

(

1-month

USD

LIBOR

+

8.25

%

),

11/29/26

.............................

United

States

7,895,149

6,134,531

West

Corp.,

Initial

Term

Loan

,

LOAN

Note

,

B

,

5

%

,

(

1-month

USD

LIBOR

+

4%;

3-month

USD

LIBOR

+

4%

),

10/10/24

..........

United

States

4,041,833

3,984,985

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Daily

Access

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

17

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

h

Senior

Floating

Rate

Interests

(continued)

Diversified

Telecommunication

Services

(continued)

Zayo

Group

Holdings,

Inc.,

Initial

Dollar

Term

Loan

,

3.121

%

,

(

1-month

USD

LIBOR

+

3

%

),

3/09/27

.....................

United

States

5,255,569

$

5,232,576

25,891,191

a

a

a

a

a

a

Electric

Utilities

0.3%

Astoria

Energy

LLC,

Advance

(2020)

Term

Loan

,

B

,

4.5

%

,

(

6-month

USD

LIBOR

+

3.5

%

),

12/10/27

..........................

United

States

1,431,017

1,434,373

EFS

Cogen

Holdings

I

LLC,

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

10/01/27

...................................

United

States

1,975,590

1,973,535

3,407,908

a

a

a

a

a

a

Electronic

Equipment,

Instruments

&

Components

0.2%

i

Verifone

Systems,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.224

%

,

(

3-month

USD

LIBOR

+

4

%

),

8/20/25

.....................

United

States

1,795,408

1,754,886

Entertainment

2.8%

Banijay

Entertainment

SAS,

Facility

USD

Term

Loan

,

B

,

3.881

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/01/25

..................

France

4,248,353

4,223,138

Diamond

Sports

Group

LLC,

Term

Loan

,

3.38

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

8/24/26

..............................

United

States

12,922,999

11,103,053

Lions

Gate

Capital

Holdings

LLC,

Term

Loan

,

A

,

1.871

%

,

(

1-month

USD

LIBOR

+

1.75

%

),

3/22/23

..........................

United

States

14,825,075

14,750,949

William

Morris

Endeavor

Entertainment

LLC

(IMG

Worldwide

Holdings

LLC),

First

Lien,

Term

Loan

,

B-1

,

2.88

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

5/18/25

..............................

United

States

2,443,464

2,288,072

32,365,212

a

a

a

a

a

a

Food

&

Staples

Retailing

1.4%

GNC

Holdings,

Inc.,

Second

Lien,

Term

Loan

,

6.234

%

,

(

3-month

USD

LIBOR

+

6

%

),

10/30/26

...........................

United

States

19,918,600

14,938,950

Shearer's

Foods

LLC,

First

Lien,

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

9/23/27

................................

United

States

839,335

843,531

15,782,481

a

a

a

a

a

a

Food

Products

2.9%

B&G

Foods,

Inc.,

Term

Loan

,

B4

,

2.621

%

,

(

1-month

USD

LIBOR

+

2.5

%

),

10/10/26

.....................................

United

States

1,136,912

1,141,272

CSM

Bakery

Solutions

Ltd.,

First

Lien,

Term

Loan

,

7.25

%

,

(

3-month

USD

LIBOR

+

6.25

%

),

1/04/22

..........................

United

States

21,832,931

21,718,309

g

CSM

Bakery

Solutions

Ltd.,

Second

Lien,

Term

Loan

,

8.75

%

,

PIK,

(

3-month

USD

LIBOR

+

7.75

%

),

7/05/21

..................

United

States

7,826,457

7,686,198

JBS

USA

Lux

SA,

New

Term

Loan

,

2.121

%

,

(

1-month

USD

LIBOR

+

2

%

),

5/01/26

.......................................

Luxembourg

3,144,014

3,145,822

33,691,601

a

a

a

a

a

a

Health

Care

Providers

&

Services

6.2%

ADMI

Corp.,

Amendment

No.

3

Incremental

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/23/27

....................

United

States

2,383,882

2,407,721

ADMI

Corp.,

Amendment

No.

4

Refinancing

Term

Loan

,

3.75

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

12/23/27

.................

United

States

2,200,000

2,200,000

BrightSpring

Health

Services,

Term

Loan

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/05/26

..............................

United

States

3,000,000

3,020,625

CNT

Holdings

I

Corp.,

First

Lien,

Term

Loan

Facility

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

11/08/27

.........................

United

States

858,610

864,591

i

eResearchTechnology

,

Inc.,

First

Lien,

Initial

Term

Loan

,

5.5

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

2/04/27

...................

United

States

6,673,459

6,712,399

Gentiva

Health

Services,

Inc.,

First

Lien,

Term

Loan

,

B

,

3.375

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

7/02/25

..................

United

States

5,764,019

5,776,642

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Daily

Access

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

18

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

h

Senior

Floating

Rate

Interests

(continued)

Health

Care

Providers

&

Services

(continued)

Global

Medical

Response,

Inc.,

2018

New

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

3/14/25

..................

United

States

2,872,387

$

2,872,028

National

Mentor

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.418%,

(1-month

USD

LIBOR

+

4.25%;

3-month

USD

LIBOR

+

4.25%),

3/09/26

.....................................

United

States

11,063,138

11,090,795

C,

4.51%,

(1-month

USD

LIBOR

+

4.25%),

3/09/26

..........

United

States

506,281

507,547

i,j

National

Mentor

Holdings,

Inc.,

Incremental

Term

Loan

,

B,

TBD,

3/09/26

.....................................

United

States

2,262,298

2,267,953

C,

TBD,

3/09/26

.....................................

United

States

87,321

87,540

Navicure

,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.121

%

,

(

1-month

USD

LIBOR

+

4

%

),

10/22/26

...............................

United

States

12,267,764

12,283,099

Pathway

Vet

Alliance

LLC,

First

Lien,

Initial

Term

Loan

,

4.121

%

,

(

1-month

USD

LIBOR

+

4

%

),

3/31/27

.....................

United

States

8,992,670

9,009,576

Phoenix

Guarantor,

Inc.,

First

Lien,

Term

Loan

,

B1

,

3.38

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

3/05/26

..........................

United

States

6,903,329

6,896,149

Pluto

Acquisition

I,

Inc.,

Incremental

Term

Loan

,

5.5

%

,

(

1-month

USD

LIBOR

+

5

%

),

6/22/26

................................

United

States

1,502,568

1,510,081

Pluto

Acquisition

I,

Inc.,

Term

Loan

,

B

,

4.615

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

12/31/27

..............................

United

States

773,195

778,027

Radiology

Partners,

Inc.,

First

Lien,

Term

Loan

,

B

,

4.804

%

,

(

1-month

USD

LIBOR

+

4.25%;

3-month

USD

LIBOR

+

4.25%

),

7/09/25

..

United

States

3,000,000

2,989,125

U.S.

Anesthesia

Partners,

Inc.,

First

Lien,

Initial

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3

%

),

6/23/24

.....................

United

States

791,795

781,612

72,055,510

a

a

a

a

a

a

Health

Care

Technology

0.1%

Inovalon

Holdings,

Inc.,

Refinancing

Date

Term

Loan

,

3.188

%

,

(

1-month

USD

LIBOR

+

3

%

),

4/02/25

.....................

United

States

1,342,947

1,347,264

Hotels,

Restaurants

&

Leisure

3.9%

24

Hour

Fitness

Worldwide,

Inc.,

Exit

Term

Loan

,

5.24

%

,

(

1-month

USD

LIBOR

+

5

%

),

12/30/25

...........................

United

States

12,917,944

11,540,052

Boyd

Gaming

Corp.,

Refinancing

Term

Loan

,

B

,

2.342

%

,

(

1-week

USD

LIBOR

+

2.25

%

),

9/15/23

..........................

United

States

9,568,023

9,556,541

Boyd

Gaming

Corp.,

Term

Loan

,

A

,

3.25

%

,

(

1-week

USD

LIBOR

+

2.75

%

),

9/15/23

.....................................

United

States

3,907,202

3,920,213

Caesars

Resort

Collection

LLC,

Term

Loan

,

B,

2.871%,

(1-month

USD

LIBOR

+

2.75%),

12/23/24

.........

United

States

8,927,990

8,791,258

B1,

4.621%,

(1-month

USD

LIBOR

+

4.5%),

7/21/25

..........

United

States

1,722,883

1,724,942

IRB

Holding

Corp.,

Fourth

Amendment

Incremental

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

12/15/27

............

United

States

1,534,538

1,542,072

Station

Casinos

LLC,

Facility

Term

Loan

,

B1

,

2.5

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

2/08/27

..............................

United

States

7,710,455

7,609,255

44,684,333

a

a

a

a

a

a

Household

Durables

0.8%

Playtika

Holding

Corp.,

Term

Loan

,

B

,

7

%

,

(

3-month

USD

LIBOR

+

6

%

),

12/10/24

......................................

United

States

8,888,200

8,955,350

Household

Products

2.5%

a,g,k

FGI

Operating

Co.

LLC,

Term

Loan

,

12

%

,

PIK,

(

3-month

USD

LIBOR

+

11

%

),

5/16/22

.....................................

United

States

49,607,243

26,093,774

Knowlton

Development

Corp.,

Inc.,

2020

Initial

Term

Loan

,

3.871

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

12/22/25

.................

Canada

2,972,975

2,959,344

29,053,118

a

a

a

a

a

a

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Daily

Access

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

19

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

h

Senior

Floating

Rate

Interests

(continued)

Insurance

2.9%

Alliant

Holdings

Intermediate

LLC,

2018

Initial

Term

Loan

,

3.371

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

5/09/25

..................

United

States

8,278,905

$

8,252,495

Alliant

Holdings

Intermediate

LLC,

Term

Loan

,

B3

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

11/05/27

.........................

United

States

411,121

412,363

AssuredPartners

,

Inc.,

2020

February

Refinancing

Term

Loan

,

3.647

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

2/12/27

.............

United

States

7,240,672

7,212,795

AssuredPartners

,

Inc.,

2020

June

Incremental

Term

Loan

,

5.5

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

2/12/27

...................

United

States

494,692

499,330

i

Asurion

LLC,

New

Term

Loan

,

B-8

,

3.371

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

12/23/26

....................................

United

States

12,504,799

12,457,906

Asurion

LLC,

Replacement

Term

Loan

,

B6

,

3.147

%

,

(

1-month

USD

LIBOR

+

3

%

),

11/03/23

...............................

United

States

1,147,311

1,146,956

Asurion

LLC,

Second

Lien,

Replacement

Term

Loan

,

B2

,

6.621

%

,

(

1-month

USD

LIBOR

+

6.5

%

),

8/04/25

...................

United

States

158,760

159,355

Asurion

LLC,

Term

Loan

,

5.365%,

(1-month

USD

LIBOR

+

5.25%),

12/31/27

...........

United

States

195,987

197,947

B9,

3.365%,

(1-month

USD

LIBOR

+

3.25%),

12/31/27

........

United

States

3,575,507

3,559,864

33,899,011

a

a

a

a

a

a

Internet

&

Direct

Marketing

Retail

0.5%

MH

Sub

I

LLC

(Micro

Holding

Corp.),

First

Lien,

2020

June

New

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

9/13/24

....

United

States

1,893,224

1,901,507

MH

Sub

I

LLC

(Micro

Holding

Corp.),

First

Lien,

Amendment

No.

2

Initial

Term

Loan

,

Internet

Brands

Inc

Note

,

3.621

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

9/13/24

...............................

United

States

4,351,316

4,333,301

6,234,808

a

a

a

a

a

a

IT

Services

5.1%

Aventiv

Technologies

LLC,

First

Lien,

Initial

Term

Loan

,

5.5

%

,

(

3-month

USD

LIBOR

+

4.5

%

),

11/01/24

..................

United

States

8,818,182

8,087,507

Barracuda

Networks,

Inc.,

First

Lien,

2020

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

2/12/25

..................

United

States

2,951,506

2,958,265

Conduent

,

Inc.,

Term

Loan

,

B

,

2.621

%

,

(

1-month

USD

LIBOR

+

2.5

%

),

12/07/23

.....................................

United

States

1,751,026

1,737,902

Informatica

LLC,

Dollar

2020

Term

Loan

,

3.371

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

2/25/27

..............................

United

States

5,329,725

5,327,353

Milano

Acquisition

Corp.,

Term

Loan

,

B

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

10/01/27

...............................

United

States

5,269,452

5,292,532

Neustar

,

Inc.,

First

Lien,

Term

Loan

,

B5

,

5.5

%

,

(

3-month

USD

LIBOR

+

4.5

%

),

8/08/24

....................................

United

States

6,035,470

5,947,111

Pitney

Bowes,

Inc.,

Incremental

Term

Loan

,

B

,

5.63

%

,

(

1-month

USD

LIBOR

+

5.5

%

),

1/07/25

...............................

United

States

6,738,576

6,736,488

Tempo

Acquisition

LLC,

Extended

Term

Loan

,

3.75

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

11/02/26

.............................

United

States

2,393,985

2,395,852

TIBCO

Software,

Inc.,

Term

Loan

,

B3

,

3.88

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

6/30/26

...................................

United

States

19,646,422

19,646,422

WEX,

Inc.,

Term

Loan

,

B3

,

2.371

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

5/15/26

...........................................

United

States

1,159,427

1,160,876

59,290,308

a

a

a

a

a

a

Leisure

Products

0.7%

i

Hercules

Achievement,

Inc.

(Varsity

Brands

Holding

Co.,

Inc.),

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

12/16/24

..........................................

United

States

1,996,576

1,920,177

NASCAR

Holdings

LLC,

Initial

Term

Loan

,

2.897

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

10/19/26

.............................

United

States

6,404,974

6,413,973

8,334,150

a

a

a

a

a

a

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Daily

Access

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

20

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

h

Senior

Floating

Rate

Interests

(continued)

Machinery

2.6%

Altra

Industrial

Motion

Corp.,

Term

Loan

,

2.121

%

,

(

1-month

USD

LIBOR

+

2

%

),

10/01/25

...............................

United

States

3,392,846

$

3,397,630

Navistar,

Inc.,

Term

Loan

,

B

,

3.63

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

11/06/24

..........................................

United

States

27,049,080

27,086,273

30,483,903

a

a

a

a

a

a

Media

7.0%

i

Cengage

Learning,

Inc.,

2016

Refinancing

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

6/07/23

..................

United

States

5,993,473

5,779,985

Clear

Channel

Outdoor

Holdings,

Inc.,

Term

Loan

,

B

,

3.711

%

,

(

2-month

USD

LIBOR

+

3.5%;

3-month

USD

LIBOR

+

3.5%

),

8/21/26

...........................................

United

States

5,721,033

5,594,083

CSC

Holdings

LLC,

March

2017

Refinancing

Term

Loan

,

2.377

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

7/17/25

..................

United

States

18,476,262

18,402,727

Gray

Television,

Inc.,

Term

Loan

,

B2

,

2.394

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

2/07/24

...................................

United

States

12,107,244

12,068,198

Nexstar

Broadcasting,

Inc.,

Term

Loan

,

B3,

2.371%,

(1-month

USD

LIBOR

+

2.25%),

1/17/24

.........

United

States

6,691,063

6,693,472

B4,

2.894%,

(1-month

USD

LIBOR

+

2.75%),

9/18/26

.........

United

States

1,436,501

1,439,891

Nielsen

Finance

LLC,

Dollar

Term

Loan

,

B5

,

4.75

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

6/04/25

..............................

United

States

1,508,794

1,525,301

Radiate

HoldCo

LLC,

Term

Loan

,

B

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

9/25/26

......................................

United

States

1,639,165

1,642,583

Sinclair

Television

Group,

Inc.,

Term

Loan

,

B

,

2.38

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

1/03/24

..............................

United

States

17,064,355

16,979,033

Univision

Communications,

Inc.,

First

Lien,

2020

Replacement

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/15/26

........

United

States

2,344,141

2,352,276

i

Virgin

Media

Bristol

LLC,

Term

Loan

,

Q

,

2.627

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

1/31/29

..............................

United

States

3,155,393

3,165,254

WideOpenWest

Finance

LLC,

Eighth

Amendment

Term

Loan

,

B

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

8/18/23

.............

United

States

5,377,023

5,382,077

81,024,880

a

a

a

a

a

a

Metals

&

Mining

0.1%

i

U.S.

Silica

Co.,

Term

Loan

,

5

%

,

(

1-month

USD

LIBOR

+

4

%

),

5/01/25

...........................................

United

States

1,408,451

1,303,261

Multiline

Retail

0.4%

Harbor

Freight

Tools

USA,

Inc.,

Initial

Term

Loan

(2020)

,

4

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

10/19/27

.................

United

States

1,214,177

1,217,364

Michaels

Stores,

Inc.,

2020

Refinancing

Term

Loan

,

B

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

10/01/27

..................

United

States

3,115,429

3,119,323

4,336,687

a

a

a

a

a

a

Oil,

Gas

&

Consumable

Fuels

2.4%

Centurion

Pipeline

Co.

LLC,

Initial

Term

Loan

,

3.371

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

9/29/25

..........................

United

States

3,394,896

3,390,652

i,l

Fieldwood

Energy

LLC,

Debtor-in-possession

Facility

Term

Loan

,

9.75

%

,

(

1-month

USD

LIBOR

+

8.75

%

),

8/04/21

.............

United

States

724,518

740,819

k

Fieldwood

Energy

LLC,

First

Lien,

Closing

Date

Term

Loan

,

6.25

%

,

(

3-month

USD

LIBOR

+

5.25

%

),

4/11/22

..................

United

States

74,275,433

19,280,788

UTEX

Industries,

Inc.,

First

Out

Term

Loan

,

8.5

%

,

(

1-month

USD

LIBOR

+

7

%

),

12/03/24

...............................

United

States

2,716,008

2,739,773

UTEX

Industries,

Inc.,

Second

Out

Term

Loan

,

11

%

,

(

1-month

USD

LIBOR

+

9.5

%

),

12/03/25

..............................

United

States

1,660,627

1,649,559

27,801,591

a

a

a

a

a

a

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Daily

Access

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

21

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

h

Senior

Floating

Rate

Interests

(continued)

Paper

&

Forest

Products

1.9%

d

Appvion

Operations,

Inc.,

Term

Loan

,

7

%

,

(

3-month

USD

LIBOR

+

6

%

),

6/12/26

.......................................

United

States

21,569,457

$

21,371,773

Personal

Products

0.8%

Coty,

Inc.,

USD

Term

Loan

,

B

,

2.382

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

4/07/25

.....................................

United

States

1,242,989

1,175,054

Sunshine

Luxembourg

VII

SARL,

Facility

Term

Loan

,

B1

,

5

%

,

(

3-month

USD

LIBOR

+

4

%

),

10/01/26

....................

Luxembourg

7,761,600

7,796,100

8,971,154

a

a

a

a

a

a

Pharmaceuticals

1.0%

Bausch

Health

Cos.,

Inc.,

Initial

Term

Loan

,

3.121

%

,

(

1-month

USD

LIBOR

+

3

%

),

6/02/25

................................

United

States

11,235,740

11,259,448

Professional

Services

0.5%

i

Dun

&

Bradstreet

Corp.

(The),

Initial

Term

Loan

Borrowing

,

B

,

3.378

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

2/06/26

............

United

States

3,022,773

3,034,652

i

UKG,

Inc.,

First

Lien,

2021

Incremental

Term

Loan

,

4

%

,

(

2-month

USD

LIBOR

+

3.25

%

),

5/04/26

..........................

United

States

2,242,442

2,255,258

5,289,910

a

a

a

a

a

a

Real

Estate

Management

&

Development

0.2%

Cushman

&

Wakefield

U.S.

Borrower

LLC,

Replacement

Term

Loan

,

2.873

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

8/21/25

............

United

States

1,985,000

1,981,070

Road

&

Rail

4.4%

Avis

Budget

Car

Rental

LLC,

New

Term

Loan

,

B

,

2.38

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

8/06/27

..........................

United

States

10,663,746

10,452,391

Kenan

Advantage

Group

Holdings

Corp.

(The),

Initial

Canadian

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3

%

),

7/29/22

.............

United

States

1,077,019

1,067,703

Kenan

Advantage

Group

Holdings

Corp.

(The),

Initial

U.S.

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3

%

),

7/29/22

.............

United

States

4,529,095

4,489,918

a

Onsite

Rental

Group

Operations

Pty.

Ltd.,

Term

Loan

,

B

,

5.5

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

10/26/22

..................

Australia

15,430,072

14,372,099

Ventia

Midco

Pty.

Ltd.,

2017

Refinancing

USD

Term

Loan

,

B

,

5

%

,

(

3-month

USD

LIBOR

+

4

%

),

5/21/26

.....................

Australia

20,630,311

20,630,311

51,012,422

a

a

a

a

a

a

Software

8.7%

i

athenahealth

,

Inc.,

First

Lien,

Term

Loan

,

B

,

4.633

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

2/11/26

...............................

United

States

11,779,187

11,836,257

Blackboard,

Inc.,

First

Lien,

Term

Loan

,

B5

,

7

%

,

(

3-month

USD

LIBOR

+

6

%

),

6/30/24

................................

United

States

11,329,831

11,317,991

Ceridian

HCM

Holding,

Inc.,

Initial

Term

Loan

,

2.592

%

,

(

1-week

USD

LIBOR

+

2.5

%

),

4/30/25

...............................

United

States

3,865,531

3,864,565

DCert

Buyer,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.121

%

,

(

1-month

USD

LIBOR

+

4

%

),

10/16/26

...........................

United

States

7,803,202

7,832,464

Epicor

Software

Corp.,

Term

Loan

,

B

,

5.25

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

7/30/27

...................................

United

States

2,017,092

2,030,083

Greeneden

U.S.

Holdings

I

LLC,

Term

Loan

,

B

,

4.75

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/01/27

...........................

United

States

5,556,677

5,584,461

Hyland

Software,

Inc.,

First

Lien,

2018

Refinancing

Term

Loan

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

7/01/24

..............

United

States

6,463,942

6,499,526

Idera

,

Inc.,

First

Lien,

Initial

Term

Loan

,

5

%

,

(

3-month

USD

LIBOR

+

4

%

),

6/28/24

.......................................

United

States

4,090,943

4,102,889

Ivanti

Software,

Inc.,

First

Lien,

Initial

Term

Loan

,

5.75

%

,

(

3-month

USD

LIBOR

+

4.75

%

),

12/01/27

.........................

United

States

2,000,000

2,020,000

LogMeIn,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.881

%

,

(

1-month

USD

LIBOR

+

4.75

%

),

8/31/27

..............................

United

States

3,987,009

3,976,205

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Daily

Access

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

22

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

h

Senior

Floating

Rate

Interests

(continued)

Software

(continued)

Mitchell

International,

Inc.,

First

Lien,

Amendment

No.

2

New

Term

Loan

Facility

,

4.75

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

11/29/24

.

United

States

4,688,250

$

4,701,916

i

Mitchell

International,

Inc.,

First

Lien,

Initial

Term

Loan

,

3.371

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

11/29/24

..................

United

States

1,200,000

1,187,850

Perforce

Software,

Inc.,

First

Lien,

New

Term

Loan

,

3.871

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

7/01/26

..................

United

States

5,642,505

5,638,978

Project

Alpha

Intermediate

Holding,

Inc.,

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

4/26/24

...........................

United

States

4,880,526

4,897,291

Quest

Software

US

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.462

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

5/16/25

............

United

States

4,125,387

4,131,286

Solera

LLC

(Solera

Finance,

Inc.),

Dollar

Term

Loan

,

2.871

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

3/03/23

..................

United

States

2,976,563

2,968,392

Sophia

LP,

Term

Loan

,

B

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

10/07/27

..........................................

United

States

3,885,859

3,906,259

Surf

Holdings

SARL,

First

Lien,

Dollar

Term

Loan

,

3.726

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

3/05/27

...........................

Luxembourg

7,749,438

7,754,281

Ultimate

Software

Group,

Inc.

(The),

First

Lien,

Initial

Term

Loan

,

3.871

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

5/04/26

............

United

States

4,317,211

4,336,120

Veritas

US,

Inc.,

Term

Loan

,

B

,

6.5

%

,

(

3-month

USD

LIBOR

+

5.5

%

),

9/01/25

...........................................

United

States

2,203,564

2,220,091

100,806,905

a

a

a

a

a

a

Specialty

Retail

1.2%

i

Party

City

Holdings,

Inc.,

2018

Replacement

Term

Loan

,

3.25

%

,

(

2-month

USD

LIBOR

+

2.5%;

3-month

USD

LIBOR

+

2.5%

),

8/19/22

...........................................

United

States

5,083,159

4,914,779

Petco

Animal

Supplies,

Inc.,

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

1/26/23

..............................

United

States

2,085,645

2,086,239

PetSmart,

Inc.,

Term

Loan

,

B

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

12/31/27

..........................................

United

States

1,727,090

1,718,454

Wand

NewCo

3,

Inc.,

First

Lien,

Term

Loan

,

B1

,

3.121

%

,

(

1-month

USD

LIBOR

+

3

%

),

2/05/26

............................

United

States

3,447,675

3,421,818

Woof

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

1-year

USD

LIBOR

+

3.75

%

),

12/21/27

.............................

United

States

1,247,896

1,255,177

13,396,467

a

a

a

a

a

a

Technology

Hardware,

Storage

&

Peripherals

0.5%

Amentum

Government

Services

Holdings

LLC,

First

Lien,

Initial

Term

Loan

,

3.621

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

1/29/27

........

United

States

2,686,500

2,678,105

Amentum

Government

Services

Holdings

LLC,

Incremental

Term

Loan

,

5.5

%

,

(

3-month

USD

LIBOR

+

4.75

%

),

1/29/27

.........

United

States

3,100,650

3,123,905

5,802,010

a

a

a

a

a

a

Textiles,

Apparel

&

Luxury

Goods

0.3%

Champ

Acquisition

Corp.,

First

Lien,

Initial

Term

Loan

,

5.76

%

,

(

3-month

USD

LIBOR

+

5.5%;

6-month

USD

LIBOR

+

5.5%

),

12/19/25

..........................................

United

States

2,981,679

2,976,894

Wireless

Telecommunication

Services

0.4%

Altice

France

SA,

USD

Incremental

Term

Loan

,

B-13

,

4.127

%

,

(

1-month

USD

LIBOR

+

4

%

),

8/14/26

.....................

France

4,425,927

4,434,536

Total

Senior

Floating

Rate

Interests

(Cost

$1,075,947,348)

........................

997,532,519

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Daily

Access

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

23

See

Abbreviations

on

page

117

.

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Asset-Backed

Securities

1.6%

Diversified

Financial

Services

1.6%

f,m

Alinea

CLO

Ltd.

,

2018-1A

,

C

,

144A,

FRN

,

2.124

%

,

(

3-month

USD

LIBOR

+

1.9

%

),

7/20/31

...............................

United

States

7,000,000

$

6,965,705

f,m

Dryden

40

Senior

Loan

Fund

,

2015-40A

,

CR

,

144A,

FRN

,

2.321

%

,

(

3-month

USD

LIBOR

+

2.1

%

),

8/15/31

...................

United

States

2,000,000

2,001,600

f,m

Galaxy

XXV

CLO

Ltd.

,

2018-25A

,

C

,

144A,

FRN

,

2.218

%

,

(

3-month

USD

LIBOR

+

2

%

),

10/25/31

...........................

United

States

500,000

501,306

f,m

Madison

Park

Funding

XI

Ltd.

,

2013-11A

,

CR

,

144A,

FRN

,

2.418

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

7/23/29

...................

United

States

2,040,000

2,045,843

f,m

Voya

CLO

Ltd.

,

2018-4A,

B,

144A,

FRN,

2.091%,

(3-month

USD

LIBOR

+

1.85%),

1/15/32

...........................................

United

States

3,565,714

3,567,879

2018-4A,

C1,

144A,

FRN,

2.791%,

(3-month

USD

LIBOR

+

2.55%),

1/15/32

.....................................

United

States

3,000,000

3,004,504

18,086,837

a

a

a

a

a

a

Total

Asset-Backed

Securities

(Cost

$18,106,983)

...............................

18,086,837

Shares/Units

Escrows

and

Litigation

Trusts

0.2%

b,f

99

Escrow

Issuer,

Inc.,

Escrow

Account,

144A

................

United

States

2,500,000

2,430,638

a,b

Millennium

Corporate

Claim

Trust,

Escrow

Account

............

United

States

13,585,837

—

a,b

Millennium

Lender

Claim

Trust,

Escrow

Account

..............

United

States

13,585,837

—

a,b,d

Remington

Outdoor

Co.,

Inc.,

Litigation

Units

.................

United

States

170,300

—

Total

Escrows

and

Litigation

Trusts

(Cost

$2,497,789)

...........................

2,430,638

Total

Long

Term

Investments

(Cost

$1,308,090,235)

.............................

1,135,640,188

a

Short

Term

Investments

3.9%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

3.9%

e,n

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

........

United

States

44,778,536

44,778,536

Total

Money

Market

Funds

(Cost

$44,778,536)

..................................

44,778,536

Total

Short

Term

Investments

(Cost

$44,778,536

)

................................

44,778,536

a

Total

Investments

(Cost

$1,352,868,771)

102.3%

................................

$1,180,418,724

Other

Assets,

less

Liabilities

(2.3)%

...........................................

(26,476,249)

Net

Assets

100.0%

...........................................................

$1,153,942,475

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Fair

valued

using

significant

unobservable

inputs.

See

Note

11

regarding

fair

value

measurements.

b

Non-income

producing.

c

See

Note

6

regarding

restricted

securities.

d

See

Note

8

regarding

holdings

of

5%

voting

securities.

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Daily

Access

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

24

e

See

Note

9

regarding

investments

in

affiliated

management

investment

companies.

f

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

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.

Regulation

S

securities

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.

At

January

31,

2021,

the

aggregate

value

of

these

securities

was

$42,935,309,

representing

3.7%

of

net

assets.

g

Income

may

be

received

in

additional

securities

and/or

cash.

h

The

coupon

rate

shown

represents

the

rate

at

period

end.

i

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

j

A

portion

or

all

of

the

security

represents

an

unsettled

loan

commitment.

The

coupon

rate

is

to-be

determined

(TBD)

at

the

time

of

the

settlement

and

will

be

based

upon

a

reference

index/floor

plus

a

spread.

k

Defaulted

security

or

security

for

which

income

has

been

deemed

uncollectible.

l

See

Note

7

regarding

unfunded

loan

commitments.

m

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

n

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited),

January

31,

2021

Franklin

Low

Duration

Total

Return

Fund

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

25

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

0.1%

Aerospace

&

Defense

0.0%

a,b,c

Remington

Outdoor

Co.,

Inc.

.............................

United

States

170,787

$

—

Machinery

0.0%

†

b

UTEX

Industries,

Inc.

..................................

United

States

5,880

199,920

Multiline

Retail

0.0%

a,b,c

K2016470219

South

Africa

Ltd.,

A

.........................

South

Africa

12,326,925

—

a,b,c

K2016470219

South

Africa

Ltd.,

B

.........................

South

Africa

1,226,701

—

—

Oil,

Gas

&

Consumable

Fuels

0.0%

†

a,b

Riviera

Resources,

Inc.

.................................

United

States

2,835

732

Paper

&

Forest

Products

0.1%

a,b,c

Appvion

Operations,

Inc.

................................

United

States

24,739

414,892

Verso

Corp.,

A

........................................

United

States

1,387

15,950

430,842

Road

&

Rail

0.0%

†

a,b

Onsite

Rental

Group

Operations

Pty.

Ltd.

...................

Australia

190,692

3,798

Specialty

Retail

0.0%

†

b

Party

City

Holdings,

Inc.

................................

United

States

57,585

414,037

Total

Common

Stocks

(Cost

$4,677,728)

.......................................

1,049,329

Management

Investment

Companies

0.9%

Capital

Markets

0.9%

d

Franklin

Floating

Rate

Income

Fund

.......................

United

States

2,389,308

18,206,524

d

Franklin

Liberty

High

Yield

Corporate

ETF

...................

United

States

259,500

6,822,255

25,028,779

Total

Management

Investment

Companies

(Cost

$30,222,727)

....................

25,028,779

Warrants

Warrants

0.0%

†

Machinery

0.0%

†

a,b

UTEX

Industries,

Inc.,

2/20/49

............................

United

States

178

318

Oil,

Gas

&

Consumable

Fuels

0.0%

†

a,b

Battalion

Oil

Corp.,

A,

10/08/22

...........................

United

States

1,093

14

a,b

Battalion

Oil

Corp.,

B,

10/08/22

...........................

United

States

1,366

7

a,b

Battalion

Oil

Corp.,

C,

10/08/22

...........................

United

States

1,757

3

24

Paper

&

Forest

Products

0.0%

†

b

Verso

Corp.,

7/25/23

...................................

United

States

146

175

Total

Warrants

(Cost

$—)

.....................................................

517

Principal

Amount

*

Corporate

Bonds

22.4%

Aerospace

&

Defense

0.1%

e

Bombardier,

Inc.

,

Senior

Bond

,

144A,

7.5

%

,

3/15/25

...........

Canada

1,600,000

1,500,000

e

TransDigm,

Inc.

,

Senior

Secured

Note

,

144A,

6.25

%

,

3/15/26

....

United

States

1,500,000

1,588,432

3,088,432

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

26

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Air

Freight

&

Logistics

1.1%

FedEx

Corp.

,

Senior

Bond,

3.2%,

2/01/25

............................

United

States

850,000

$

929,801

Senior

Note,

3.8%,

5/15/25

............................

United

States

13,400,000

15,051,514

United

Parcel

Service,

Inc.

,

Senior

Note

,

3.9

%

,

4/01/25

.........

United

States

12,000,000

13,504,719

29,486,034

Airlines

0.1%

Delta

Air

Lines,

Inc.

,

Senior

Note

,

2.9

%

,

10/28/24

.............

United

States

1,600,000

1,573,104

United

Airlines

Holdings,

Inc.

,

Senior

Note

,

5

%

,

2/01/24

.........

United

States

800,000

790,740

2,363,844

Auto

Components

0.2%

Aptiv

Corp.

,

Senior

Bond

,

4.15

%

,

3/15/24

...................

United

States

900,000

991,423

Goodyear

Tire

&

Rubber

Co.

(The)

,

Senior

Note

,

5.125

%

,

11/15/23

United

States

3,500,000

3,506,860

4,498,283

Banks

5.3%

e

Akbank

T.A.S.

,

Senior

Bond

,

144A,

5.125

%

,

3/31/25

...........

Turkey

2,000,000

2,044,568

Bank

of

America

Corp.

,

Senior

Note

,

3.55%

to

3/05/23,

FRN

thereafter

,

3/05/24

...................................

United

States

10,350,000

11,011,978

e

Bank

of

China

Ltd.

,

Senior

Note

,

Reg

S,

2.875

%

,

4/20/22

.......

China

1,000,000

1,024,215

Bank

of

Montreal

,

Senior

Note

,

1.85

%

,

5/01/25

...............

Canada

5,900,000

6,167,504

Barclays

plc

,

Senior

Note

,

4.61%

to

2/15/22,

FRN

thereafter

,

2/15/23

United

Kingdom

6,300,000

6,562,105

Citigroup,

Inc.

,

Senior

Note,

2.35%,

8/02/21

...........................

United

States

5,400,000

5,458,397

Senior

Note,

2.9%,

12/08/21

...........................

United

States

6,000,000

6,121,334

Senior

Note,

2.75%,

4/25/22

...........................

United

States

5,800,000

5,961,479

e

Dexia

Credit

Local

SA

,

Senior

Note

,

144A,

2.375

%

,

9/20/22

.....

France

4,800,000

4,962,386

Fifth

Third

Bancorp

,

Senior

Note,

1.625%,

5/05/23

..........................

United

States

4,100,000

4,208,821

Senior

Note,

2.55%,

5/05/27

...........................

United

States

3,500,000

3,794,730

HSBC

Holdings

plc

,

Senior

Bond,

4.3%,

3/08/26

............................

United

Kingdom

800,000

921,391

Senior

Bond,

2.848%

to

6/04/30,

FRN

thereafter,

6/04/31

.....

United

Kingdom

3,700,000

3,913,850

Senior

Note,

3.262%

to

3/13/22,

FRN

thereafter,

3/13/23

......

United

Kingdom

1,400,000

1,444,880

Senior

Note,

2.013%

to

9/22/27,

FRN

thereafter,

9/22/28

......

United

Kingdom

7,600,000

7,757,776

Industrial

&

Commercial

Bank

of

China

Ltd.

,

Senior

Note,

2.452%,

10/20/21

.........................

China

1,900,000

1,921,204

Senior

Note,

2.957%,

11/08/22

.........................

China

9,400,000

9,725,765

JPMorgan

Chase

&

Co.

,

Senior

Note,

2.083%

to

4/22/25,

FRN

thereafter,

4/22/26

......

United

States

18,200,000

19,044,975

Sub.

Bond,

3.875%,

9/10/24

...........................

United

States

8,400,000

9,353,410

Lloyds

Banking

Group

plc

,

Senior

Note

,

3.87%

to

7/09/24,

FRN

thereafter

,

7/09/25

...................................

United

Kingdom

2,300,000

2,529,323

Regions

Financial

Corp.

,

Senior

Note

,

2.25

%

,

5/18/25

..........

United

States

5,000,000

5,273,202

e

Standard

Chartered

plc

,

Senior

Note

,

144A,

3.885%

to

3/15/23,

FRN

thereafter

,

3/15/24

...................................

United

Kingdom

10,000,000

10,642,023

Wells

Fargo

&

Co.

,

Senior

Note,

2.188%

to

4/30/25,

FRN

thereafter,

4/30/26

......

United

States

8,400,000

8,794,756

Senior

Note,

2.393%

to

6/02/27,

FRN

thereafter,

6/02/28

......

United

States

5,900,000

6,231,805

144,871,877

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

27

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Beverages

0.3%

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond

,

3.5

%

,

6/01/30

Belgium

4,600,000

$

5,252,595

Coca-Cola

Co.

(The)

,

Senior

Note

,

1.45

%

,

6/01/27

............

United

States

2,000,000

2,048,892

7,301,487

Biotechnology

0.3%

AbbVie,

Inc.

,

Senior

Note,

2.3%,

11/21/22

...........................

United

States

7,500,000

7,753,018

Senior

Note,

3.8%,

3/15/25

............................

United

States

600,000

667,077

Senior

Note,

2.95%,

11/21/26

..........................

United

States

500,000

550,511

8,970,606

Capital

Markets

0.4%

Bank

of

New

York

Mellon

Corp.

(The)

,

Senior

Note

,

1.6

%

,

4/24/25

.

United

States

6,500,000

6,763,855

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Bond

,

3.75

%

,

5/22/25

..

United

States

1,000,000

1,113,878

Morgan

Stanley

,

Senior

Bond,

3.7%,

10/23/24

...........................

United

States

1,400,000

1,552,832

Senior

Note,

2.188%

to

4/28/25,

FRN

thereafter,

4/28/26

......

United

States

1,300,000

1,366,328

10,796,893

Chemicals

0.6%

Air

Products

and

Chemicals,

Inc.

,

Senior

Note

,

1.5

%

,

10/15/25

...

United

States

2,000,000

2,071,958

e,f

Anagram

International,

Inc.

/

Anagram

Holdings

LLC

,

Secured

Note

,

144A,

PIK,

10

%

,

8/15/26

..............................

United

States

305,890

294,504

e

Braskem

Netherlands

Finance

BV

,

Senior

Bond

,

144A,

4.5

%

,

1/31/30

...........................................

Brazil

7,100,000

7,225,954

EI

du

Pont

de

Nemours

and

Co.

,

Senior

Note

,

1.7

%

,

7/15/25

.....

United

States

4,100,000

4,253,419

Methanex

Corp.

,

Senior

Bond

,

4.25

%

,

12/01/24

...............

Canada

1,500,000

1,576,875

e

SABIC

Capital

II

BV

,

Senior

Bond

,

144A,

4.5

%

,

10/10/28

........

Saudi

Arabia

400,000

473,742

e

Yara

International

ASA

,

Senior

Bond

,

144A,

3.148

%

,

6/04/30

.....

Brazil

700,000

752,074

16,648,526

Commercial

Services

&

Supplies

0.1%

RELX

Capital,

Inc.

,

Senior

Bond

,

3

%

,

5/22/30

................

United

Kingdom

1,300,000

1,416,861

Communications

Equipment

0.1%

e

CommScope

Technologies

LLC

,

Senior

Bond

,

144A,

6

%

,

6/15/25

.

United

States

1,500,000

1,533,750

Consumer

Finance

1.1%

American

Express

Co.

,

Senior

Note

,

3.7

%

,

8/03/23

............

United

States

6,800,000

7,343,247

Capital

One

Financial

Corp.

,

Senior

Note

,

3.05

%

,

3/09/22

.......

United

States

13,800,000

14,184,142

Caterpillar

Financial

Services

Corp.

,

Senior

Note

,

1.45

%

,

5/15/25

.

United

States

1,900,000

1,960,235

e

ICBCIL

Finance

Co.

Ltd.

,

Senior

Note

,

144A,

2.5

%

,

9/29/21

......

China

500,000

504,347

OneMain

Finance

Corp.

,

Senior

Note

,

6.125

%

,

3/15/24

.........

United

States

4,200,000

4,595,094

28,587,065

Containers

&

Packaging

0.1%

e

Owens-Brockway

Glass

Container,

Inc.

,

Senior

Bond,

144A,

5.375%,

1/15/25

.....................

United

States

1,500,000

1,617,968

Senior

Note,

144A,

5.875%,

8/15/23

.....................

United

States

1,000,000

1,071,875

e

Sealed

Air

Corp.

,

Senior

Bond

,

144A,

5.25

%

,

4/01/23

..........

United

States

950,000

1,006,900

3,696,743

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

28

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Diversified

Financial

Services

0.3%

Cia

Securitizadora

de

Creditos

Financeiros

Vert-Fintech

,

12

,

Senior

Secured

Note

,

Zero

Cpn.,

(

BZDIOVRA

+

5.75

%

),

2/14/24

......

Brazil

7,676,000

BRL

$

1,611,304

e

EDP

Finance

BV

,

Senior

Note

,

144A,

1.71

%

,

1/24/28

..........

Portugal

6,500,000

6,472,236

8,083,540

Diversified

Telecommunication

Services

0.1%

e

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Note

,

144A,

4

%

,

3/01/23

...................................

United

States

1,700,000

1,720,748

Electric

Utilities

1.6%

e

CGNPC

International

Ltd.

,

Senior

Bond

,

Reg

S,

3.75

%

,

12/11/27

..

China

2,100,000

2,288,475

Duke

Energy

Corp.

,

Senior

Bond

,

2.45

%

,

6/01/30

.............

United

States

4,100,000

4,279,866

Exelon

Corp.

,

Senior

Bond

,

4.05

%

,

4/15/30

..................

United

States

7,500,000

8,780,203

e

Korea

East-West

Power

Co.

Ltd.

,

Senior

Note,

144A,

3.875%,

7/19/23

.....................

South

Korea

4,800,000

5,206,524

Senior

Note,

144A,

1.75%,

5/06/25

......................

South

Korea

8,500,000

8,847,563

Southern

Co.

(The)

,

Senior

Bond,

3.25%,

7/01/26

...........................

United

States

850,000

945,906

A,

Senior

Bond,

3.7%,

4/30/30

.........................

United

States

12,200,000

13,893,494

44,242,031

Electrical

Equipment

0.1%

Emerson

Electric

Co.

,

Senior

Note

,

1.8

%

,

10/15/27

............

United

States

3,800,000

3,978,255

Electronic

Equipment,

Instruments

&

Components

0.0%

†

FLIR

Systems,

Inc.

,

Senior

Note

,

2.5

%

,

8/01/30

...............

United

States

600,000

629,663

Energy

Equipment

&

Services

0.4%

Baker

Hughes

a

GE

Co.

LLC

/

Baker

Hughes

Co-Obligor,

Inc.

,

Senior

Bond,

4.486%,

5/01/30

..........................

United

States

500,000

594,664

Senior

Note,

2.773%,

12/15/22

.........................

United

States

8,800,000

9,170,601

9,765,265

Entertainment

0.7%

e

Banijay

Entertainment

SASU

,

Senior

Secured

Note

,

144A,

5.375

%

,

3/01/25

...........................................

France

3,500,000

3,585,313

e

Live

Nation

Entertainment,

Inc.

,

Senior

Secured

Note

,

144A,

3.75

%

,

1/15/28

...........................................

United

States

100,000

101,083

Netflix,

Inc.

,

Senior

Bond,

5.75%,

3/01/24

...........................

United

States

1,800,000

2,048,265

Senior

Bond,

4.375%,

11/15/26

.........................

United

States

3,100,000

3,550,507

e

Senior

Note,

144A,

3.625%,

6/15/25

.....................

United

States

3,100,000

3,373,188

Walt

Disney

Co.

(The)

,

Senior

Note

,

1.75

%

,

1/13/26

...........

United

States

6,600,000

6,889,503

19,547,859

Equity

Real

Estate

Investment

Trusts

(REITs)

0.5%

AvalonBay

Communities,

Inc.

,

Senior

Bond

,

2.45

%

,

1/15/31

.....

United

States

3,500,000

3,719,888

Simon

Property

Group

LP

,

Senior

Bond

,

3.375

%

,

10/01/24

......

United

States

5,600,000

6,084,459

e

VICI

Properties

LP

/

VICI

Note

Co.,

Inc.

,

Senior

Note

,

144A,

3.5

%

,

2/15/25

...........................................

United

States

3,000,000

3,054,375

12,858,722

Food

&

Staples

Retailing

0.1%

e

Cencosud

SA

,

Senior

Bond

,

144A,

4.375

%

,

7/17/27

...........

Chile

2,900,000

3,261,975

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

29

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Health

Care

Equipment

&

Supplies

0.0%

†

Edwards

Lifesciences

Corp.

,

Senior

Bond

,

4.3

%

,

6/15/28

.......

United

States

300,000

$

351,095

Health

Care

Providers

&

Services

0.8%

Anthem,

Inc.

,

Senior

Note,

2.95%,

12/01/22

..........................

United

States

100,000

104,400

Senior

Note,

2.375%,

1/15/25

..........................

United

States

2,400,000

2,548,289

Centene

Corp.

,

Senior

Note

,

3.375

%

,

2/15/30

................

United

States

2,700,000

2,832,476

Cigna

Corp.

,

Senior

Note,

3.75%,

7/15/23

...........................

United

States

2,592,000

2,796,839

Senior

Note,

4.125%,

11/15/25

.........................

United

States

5,600,000

6,425,846

CVS

Health

Corp.

,

Senior

Note

,

3.7

%

,

3/09/23

...............

United

States

952,000

1,015,621

e

ModivCare,

Inc.

,

Senior

Note

,

144A,

5.875

%

,

11/15/25

.........

United

States

2,400,000

2,548,500

Orlando

Health

Obligated

Group

,

3.777

%

,

10/01/28

............

United

States

105,000

119,757

Providence

St

Joseph

Health

Obligated

Group

,

H

,

2.746

%

,

10/01/26

United

States

15,000

16,329

Quest

Diagnostics,

Inc.

,

Senior

Bond

,

2.8

%

,

6/30/31

...........

United

States

1,770,000

1,921,831

20,329,888

Hotels,

Restaurants

&

Leisure

0.1%

e

Caesars

Resort

Collection

LLC

/

CRC

Finco,

Inc.

,

Senior

Note

,

144A,

5.25

%

,

10/15/25

.....................................

United

States

500,000

498,210

e

Genting

New

York

LLC

/

GENNY

Capital,

Inc.

,

Senior

Note

,

144A,

3.3

%

,

2/15/26

......................................

United

States

400,000

402,853

e

NCL

Corp.

Ltd.

,

Senior

Note

,

144A,

5.875

%

,

3/15/26

...........

United

States

900,000

892,129

e

Wynn

Macau

Ltd.

,

Senior

Note

,

144A,

5.625

%

,

8/26/28

.........

Macau

400,000

412,130

2,205,322

Independent

Power

and

Renewable

Electricity

Producers

0.1%

e

InterGen

NV

,

Senior

Secured

Bond

,

144A,

7

%

,

6/30/23

.........

Netherlands

1,400,000

1,356,250

e

Talen

Energy

Supply

LLC

,

Senior

Note

,

144A,

10.5

%

,

1/15/26

....

United

States

1,500,000

1,383,750

2,740,000

Industrial

Conglomerates

0.2%

Honeywell

International,

Inc.

,

Senior

Note

,

1.35

%

,

6/01/25

.......

United

States

5,600,000

5,769,321

Insurance

0.7%

Aflac,

Inc.

,

Senior

Bond

,

3.625

%

,

11/15/24

..................

United

States

8,000,000

8,915,822

e

Athene

Global

Funding

,

Secured

Note

,

144A,

2.75

%

,

6/25/24

....

United

States

1,100,000

1,169,159

e

Jackson

National

Life

Global

Funding

,

Senior

Secured

Note

,

144A,

2.1

%

,

10/25/21

.....................................

United

States

25,000

25,335

Manulife

Financial

Corp.

,

Senior

Note

,

2.484

%

,

5/19/27

.........

Canada

9,200,000

9,908,121

20,018,437

Interactive

Media

&

Services

0.7%

Baidu,

Inc.

,

Senior

Note

,

4.375

%

,

5/14/24

...................

China

6,500,000

7,167,017

e

Tencent

Holdings

Ltd.

,

Senior

Note,

144A,

2.985%,

1/19/23

.....................

China

9,200,000

9,570,725

Senior

Note,

144A,

1.81%,

1/26/26

......................

China

3,000,000

3,046,954

19,784,696

Internet

&

Direct

Marketing

Retail

0.6%

Alibaba

Group

Holding

Ltd.

,

Senior

Note,

2.8%,

6/06/23

............................

China

1,100,000

1,151,747

Senior

Note,

3.6%,

11/28/24

...........................

China

11,000,000

12,025,932

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

30

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Internet

&

Direct

Marketing

Retail

(continued)

Amazon.com,

Inc.

,

Senior

Note

,

2.4

%

,

2/22/23

...............

United

States

2,550,000

$

2,657,454

15,835,133

IT

Services

0.2%

Fiserv,

Inc.

,

Senior

Note

,

2.25

%

,

6/01/27

....................

United

States

5,200,000

5,501,718

Machinery

0.2%

CNH

Industrial

Capital

LLC

,

Senior

Note

,

3.875

%

,

10/15/21

......

United

States

5,100,000

5,219,744

e

Manitowoc

Co.,

Inc.

(The)

,

Secured

Note

,

144A,

9

%

,

4/01/26

....

United

States

1,200,000

1,293,750

6,513,494

Media

0.5%

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

,

Senior

Secured

Bond

,

2.8

%

,

4/01/31

.......

United

States

3,800,000

3,924,605

e

Clear

Channel

International

BV

,

Senior

Secured

Note

,

144A,

6.625

%

,

8/01/25

.....................................

United

States

3,000,000

3,168,750

CSC

Holdings

LLC

,

Senior

Bond

,

5.25

%

,

6/01/24

.............

United

States

2,000,000

2,156,250

e

Univision

Communications,

Inc.

,

Senior

Secured

Note

,

144A,

5.125

%

,

2/15/25

.....................................

United

States

3,700,000

3,727,010

12,976,615

Metals

&

Mining

0.2%

e

Glencore

Finance

Canada

Ltd.

,

Senior

Bond

,

144A,

4.95

%

,

11/15/21

Switzerland

3,500,000

3,622,054

e

Glencore

Funding

LLC

,

Senior

Note

,

144A,

3

%

,

10/27/22

.......

Australia

2,200,000

2,286,110

5,908,164

Multiline

Retail

0.0%

†

a,e,f

K2016470219

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

3

%

,

12/31/22

.......................................

South

Africa

1,021,612

—

a,e,f

K2016470260

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

25

%

,

12/31/22

......................................

South

Africa

330,503

1,652

1,652

Multi-Utilities

0.1%

Dominion

Energy,

Inc.

,

D

,

Senior

Bond

,

2.85

%

,

8/15/26

.........

United

States

1,300,000

1,424,256

Oil,

Gas

&

Consumable

Fuels

2.3%

e

Aker

BP

ASA

,

Senior

Note

,

144A,

4.75

%

,

6/15/24

.............

Norway

1,800,000

1,855,277

Apache

Corp.

,

Senior

Note

,

4.625

%

,

11/15/25

................

United

States

1,500,000

1,539,375

Chevron

Corp.

,

Senior

Note

,

1.554

%

,

5/11/25

................

United

States

4,500,000

4,647,877

CNOOC

Finance

2015

USA

LLC

,

Senior

Bond

,

3.5

%

,

5/05/25

....

China

1,700,000

1,825,307

EnLink

Midstream

Partners

LP

,

Senior

Bond

,

4.4

%

,

4/01/24

......

United

States

3,800,000

3,771,500

Enterprise

Products

Operating

LLC

,

Senior

Note

,

3.35

%

,

3/15/23

.

United

States

850,000

896,683

Exxon

Mobil

Corp.

,

Senior

Note

,

1.571

%

,

4/15/23

.............

United

States

19,000,000

19,521,836

e

Harvest

Operations

Corp.

,

Senior

Note

,

144A,

4.2

%

,

6/01/23

.....

South

Korea

2,900,000

3,140,097

Kinder

Morgan,

Inc.

,

Senior

Note

,

3.15

%

,

1/15/23

.............

United

States

9,300,000

9,761,108

MPLX

LP

,

Senior

Note

,

4.875

%

,

12/01/24

...................

United

States

6,800,000

7,729,097

Occidental

Petroleum

Corp.

,

Senior

Note,

3.45%,

7/15/24

...........................

United

States

3,000,000

2,887,500

Senior

Note,

5.5%,

12/01/25

...........................

United

States

500,000

525,750

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

31

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Oil,

Gas

&

Consumable

Fuels

(continued)

Sabine

Pass

Liquefaction

LLC

,

Senior

Secured

Note

,

5.75

%

,

5/15/24

United

States

2,000,000

$

2,289,814

e

Sinopec

Group

Overseas

Development

2015

Ltd.

,

Senior

Bond

,

144A,

3.25

%

,

4/28/25

.................................

China

1,000,000

1,078,765

Williams

Cos.,

Inc.

(The)

,

Senior

Bond

,

3.5

%

,

11/15/30

.........

United

States

2,000,000

2,209,595

63,679,581

Personal

Products

0.2%

Avon

Products,

Inc.

,

Senior

Bond

,

6.75

%

,

3/15/23

.............

United

Kingdom

5,835,000

6,254,391

Pharmaceuticals

0.4%

e

Bayer

US

Finance

II

LLC

,

Senior

Note

,

144A,

3.875

%

,

12/15/23

..

Germany

5,800,000

6,325,582

Bristol-Myers

Squibb

Co.

,

Senior

Note

,

2.9

%

,

7/26/24

..........

United

States

4,000,000

4,334,866

e

Royalty

Pharma

plc

,

Senior

Note

,

144A,

1.75

%

,

9/02/27

........

United

States

700,000

715,127

11,375,575

Road

&

Rail

0.0%

†

a,f

Onsite

Rental

Group

Operations

Pty.

Ltd.

,

PIK,

6.1

%

,

10/26/23

...

Australia

347,593

319,141

Semiconductors

&

Semiconductor

Equipment

0.6%

Maxim

Integrated

Products,

Inc.

,

Senior

Bond

,

3.45

%

,

6/15/27

...

United

States

800,000

902,348

Micron

Technology,

Inc.

,

Senior

Note

,

2.497

%

,

4/24/23

.........

United

States

4,500,000

4,699,042

e

SK

Hynix,

Inc.

,

Senior

Note

,

144A,

1.5

%

,

1/19/26

.............

South

Korea

9,900,000

9,993,728

15,595,118

Specialty

Retail

0.0%

†

e,g

Party

City

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

FRN

,

5.75

%

,

(

6-month

USD

LIBOR

+

5

%

),

7/15/25

.....................

United

States

565,890

537,595

Thrifts

&

Mortgage

Finance

0.4%

e

BPCE

SA

,

Senior

Note

,

144A,

2.375

%

,

1/14/25

...............

France

7,000,000

7,372,926

Radian

Group,

Inc.

,

Senior

Note

,

6.625

%

,

3/15/25

.............

United

States

3,000,000

3,388,650

10,761,576

Tobacco

0.3%

Altria

Group,

Inc.

,

Senior

Note

,

2.35

%

,

5/06/25

...............

United

States

4,200,000

4,437,180

e

Imperial

Brands

Finance

plc

,

Senior

Bond,

144A,

4.25%,

7/21/25

......................

United

Kingdom

1,695,000

1,898,584

Senior

Note,

144A,

3.125%,

7/26/24

.....................

United

Kingdom

700,000

747,664

Reynolds

American,

Inc.

,

Senior

Bond

,

4.45

%

,

6/12/25

.........

United

Kingdom

100,000

113,232

7,196,660

Trading

Companies

&

Distributors

0.1%

e

Beacon

Roofing

Supply,

Inc.

,

Senior

Note

,

144A,

4.875

%

,

11/01/25

United

States

1,000,000

1,014,015

e

WESCO

Distribution,

Inc.

,

Senior

Note

,

144A,

7.125

%

,

6/15/25

...

United

States

1,400,000

1,525,188

2,539,203

Wireless

Telecommunication

Services

0.1%

e

Sprint

Spectrum

Co.

LLC

/

Sprint

Spectrum

Co.

II

LLC

/

Sprint

Spectrum

Co.

III

LLC

,

Senior

Secured

Note

,

144A,

3.423

%

,

9/20/21

...........................................

United

States

468,750

473,632

T-Mobile

USA,

Inc.

,

Senior

Note

,

2.25

%

,

2/15/26

..............

United

States

3,000,000

3,035,370

3,509,002

Total

Corporate

Bonds

(Cost

$581,281,715)

.....................................

608,476,092

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

32

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

g

Senior

Floating

Rate

Interests

3.6%

Aerospace

&

Defense

0.1%

f

Alloy

FinCo

Ltd.,

Facility

Term

Loan

,

B

,

14

%

,

PIK,

(

3-month

USD

LIBOR

+

0.5

%

),

3/06/25

...............................

United

Kingdom

213,570

$

107,204

Dynasty

Acquisition

Co.,

Inc.,

2020

Term

Loan

,

B1,

3.754%,

(3-month

USD

LIBOR

+

3.5%),

4/06/26

..........

United

States

1,171,304

1,128,551

B2,

3.754%,

(3-month

USD

LIBOR

+

3.5%),

4/06/26

..........

United

States

629,733

606,748

1,842,503

a

a

a

a

a

a

Airlines

0.1%

Allegiant

Travel

Co.,

Replacement

Term

Loan

,

3.214

%

,

(

3-month

USD

LIBOR

+

3

%

),

2/05/24

............................

United

States

1,684,378

1,650,270

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.,

Initial

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

10/20/27

.................

United

States

344,890

362,200

JetBlue

Airways

Corp.,

Term

Loan

,

6.25

%

,

(

3-month

USD

LIBOR

+

5.25

%

),

6/17/24

.....................................

United

States

143,590

149,005

Kestrel

Bidco,

Inc.,

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3

%

),

12/11/26

..........................................

Canada

1,842,398

1,778,605

3,940,080

a

a

a

a

a

a

Auto

Components

0.2%

Adient

US

LLC,

Initial

Term

Loan

,

4.394

%

,

(

3-month

USD

LIBOR

+

4.25%;

1-month

USD

LIBOR

+

4.25%

),

5/06/24

.............

United

States

4,018,849

4,031,408

Highline

Aftermarket

Acquisition

LLC,

First

Lien,

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.5

%

),

11/09/27

..................

United

States

138,443

138,617

Panther

BF

Aggregator

2

LP,

First

Lien,

Initial

Dollar

Term

Loan

,

3.621

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

4/30/26

.............

Canada

573,523

574,598

TRICO

Group

LLC,

First

Lien,

Term

Loan

,

B3

,

8.5

%

,

(

3-month

USD

LIBOR

+

7.5

%

),

2/02/24

...............................

United

States

764,047

779,806

h

Truck

Hero,

Inc.,

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

1/31/28

.....................................

United

States

174,487

175,120

5,699,549

a

a

a

a

a

a

Automobiles

0.1%

Thor

Industries,

Inc.,

Initial

USD

Term

Loan

,

3.938

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

2/01/26

..............................

United

States

1,692,645

1,696,877

Biotechnology

0.1%

Grifols

Worldwide

Operations

Ltd.,

Dollar

Term

Loan

,

B

,

2.092

%

,

(

1-

week

USD

LIBOR

+

2

%

),

11/15/27

.......................

Ireland

1,206,890

1,206,220

Horizon

Therapeutics

USA,

Inc.,

Seventh

Amendment

Refinancing

Term

Loan

,

2.188

%

,

(

1-month

USD

LIBOR

+

2

%

),

5/22/26

.....

United

States

352,527

352,793

1,559,013

a

a

a

a

a

a

Capital

Markets

0.1%

h

Citadel

Securities

LP,

Term

Loan

,

B

,

2.615

%

,

(

1-month

USD

LIBOR

+

2.5

%

),

2/29/28

....................................

United

States

860,000

857,132

h

Jane

Street

Group

LLC,

Term

Loan

,

2.875

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

1/31/28

.....................................

United

States

417,592

416,921

Vertical

Midco

GmbH,

USD

Term

Loan

,

4.567

%

,

(

6-month

USD

LIBOR

+

4.25

%

),

6/30/27

..............................

Germany

685,042

692,369

1,966,422

a

a

a

a

a

a

Chemicals

0.1%

Axalta

Coating

Systems

Dutch

Holding

B

BV

(Axalta

Coating

Systems

U.S.

Holdings,

Inc.),

Dollar

Term

Loan

,

B3

,

2.004

%

,

(

3-month

USD

LIBOR

+

1.75

%

),

6/01/24

..................

Netherlands

636,647

635,498

Cyanco

Intermediate

2

Corp.,

First

Lien,

Initial

Term

Loan

,

3.621

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

3/16/25

...................

United

States

563,319

564,141

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

33

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

g

Senior

Floating

Rate

Interests

(continued)

Chemicals

(continued)

Illuminate

Buyer

LLC,

Term

Loan

,

4.121

%

,

(

1-month

USD

LIBOR

+

4

%

),

6/30/27

.......................................

United

States

235,674

$

236,780

h

INEOS

226

Ltd.,

USD

Term

Loan

,

B

,

3.25

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

1/21/26

.....................................

United

Kingdom

271,085

272,497

h

NIC

Acquisition

Corp.,

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

12/29/27

....................................

United

States

161,821

162,631

1,871,547

a

a

a

a

a

a

Commercial

Services

&

Supplies

0.1%

CCI

Buyer,

Inc.,

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

12/17/27

..........................................

United

States

78,311

78,957

Legalzoom.com,

Inc.,

First

Lien,

2018

Term

Loan

,

4.621

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

11/21/24

..........................

United

States

890,679

892,354

Prime

Security

Services

Borrower

LLC,

First

Lien,

2019

Refinancing

Term

Loan

,

B1

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

9/23/26

United

States

805,979

807,132

Staples,

Inc.,

2019

Refinancing

New

Term

Loan

,

B1

,

5.214

%

,

(

3-month

USD

LIBOR

+

5

%

),

4/16/26

.....................

United

States

572,902

562,519

2,340,962

a

a

a

a

a

a

Communications

Equipment

0.0%

†

CommScope,

Inc.,

Initial

Term

Loan

,

3.371

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

4/06/26

...................................

United

States

1,188,564

1,189,027

Containers

&

Packaging

0.1%

Berry

Global,

Inc.,

Term

Loan

,

Y

,

2.133

%

,

(

1-month

USD

LIBOR

+

2

%

),

7/01/26

.......................................

United

States

988,454

988,266

BWay

Holding

Co.,

Initial

Term

Loan

,

3.381

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

4/03/24

...................................

United

States

1,331,048

1,309,419

2,297,685

a

a

a

a

a

a

Diversified

Consumer

Services

0.1%

h

KUEHG

Corp.,

Term

Loan

,

B-3

,

4.75

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

2/21/25

.....................................

United

States

1,110,000

1,078,087

h

Sedgwick

Claims

Management

Services,

Inc.

(Lightning

Cayman

Merger

Sub

Ltd.),

Initial

Term

Loan

,

3.371

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

12/31/25

..................................

United

States

500,000

497,778

1,575,865

a

a

a

a

a

a

Diversified

Financial

Services

0.1%

First

Eagle

Holdings,

Inc.,

2020

Refinancing

Term

Loan

,

2.754

%

,

(

3-month

USD

LIBOR

+

2.5

%

),

2/01/27

...................

United

States

1,502,412

1,500,181

Jefferies

Finance

LLC,

2020

Term

Loan

,

3.938

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

9/30/27

..............................

United

States

239,841

240,740

Verscend

Holding

Corp.,

Term

Loan

,

B

,

4.621

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

8/27/25

...............................

United

States

548,597

549,969

2,290,890

a

a

a

a

a

a

Diversified

Telecommunication

Services

0.1%

Global

Tel

Link,

First

Lien,

Term

Loan

,

4.371

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

11/29/25

.............................

United

States

941,129

868,192

Zayo

Group

Holdings,

Inc.,

Initial

Dollar

Term

Loan

,

3.121

%

,

(

1-month

USD

LIBOR

+

3

%

),

3/09/27

.....................

United

States

1,366,324

1,360,346

2,228,538

a

a

a

a

a

a

Electric

Utilities

0.0%

†

Astoria

Energy

LLC,

Advance

(2020)

Term

Loan

,

B

,

4.5

%

,

(

6-month

USD

LIBOR

+

3.5

%

),

12/10/27

..........................

United

States

106,782

107,033

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

34

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

g

Senior

Floating

Rate

Interests

(continued)

Entertainment

0.1%

Banijay

Entertainment

SAS,

Facility

USD

Term

Loan

,

B

,

3.881

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/01/25

..................

France

1,197,696

$

1,190,588

Diamond

Sports

Group

LLC,

Term

Loan

,

3.38

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

8/24/26

..............................

United

States

1,732,456

1,488,474

William

Morris

Endeavor

Entertainment

LLC

(IMG

Worldwide

Holdings

LLC),

First

Lien,

Term

Loan

,

B-1

,

2.88

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

5/18/25

..............................

United

States

1,408,639

1,319,057

3,998,119

a

a

a

a

a

a

Food

&

Staples

Retailing

0.0%

†

GNC

Holdings,

Inc.,

Second

Lien,

Term

Loan

,

6.234

%

,

(

3-month

USD

LIBOR

+

6

%

),

10/30/26

...........................

United

States

448,466

336,349

Food

Products

0.1%

B&G

Foods,

Inc.,

Term

Loan

,

B4

,

2.621

%

,

(

1-month

USD

LIBOR

+

2.5

%

),

10/10/26

.....................................

United

States

641,749

644,210

f

CSM

Bakery

Solutions

Ltd.,

Second

Lien,

Term

Loan

,

8.75

%

,

PIK,

(

3-month

USD

LIBOR

+

7.75

%

),

7/05/21

..................

United

States

433,944

426,167

JBS

USA

Lux

SA,

New

Term

Loan

,

2.121

%

,

(

1-month

USD

LIBOR

+

2

%

),

5/01/26

.......................................

Luxembourg

999,746

1,000,321

2,070,698

a

a

a

a

a

a

Health

Care

Providers

&

Services

0.2%

ADMI

Corp.,

Amendment

No.

3

Incremental

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/23/27

....................

United

States

184,314

186,157

BrightSpring

Health

Services,

Term

Loan

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/05/26

..............................

United

States

540,000

543,713

CNT

Holdings

I

Corp.,

First

Lien,

Term

Loan

Facility

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

11/08/27

.........................

United

States

71,895

72,396

h

eResearchTechnology,

Inc.,

First

Lien,

Initial

Term

Loan

,

5.5

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

2/04/27

...................

United

States

132,609

133,383

Gentiva

Health

Services,

Inc.,

First

Lien,

Term

Loan

,

B

,

3.375

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

7/02/25

..................

United

States

1,773,544

1,777,428

National

Mentor

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.418%,

(1-month

USD

LIBOR

+

4.25%;

3-month

USD

LIBOR

+

4.25%),

3/09/26

.....................................

United

States

367,281

368,199

C,

4.51%,

(1-month

USD

LIBOR

+

4.25%),

3/09/26

..........

United

States

16,808

16,850

h,i

National

Mentor

Holdings,

Inc.,

Incremental

Term

Loan

,

B,

TBD,

3/09/26

.....................................

United

States

15,154

15,192

C,

TBD,

3/09/26

.....................................

United

States

585

587

Pathway

Vet

Alliance

LLC,

First

Lien,

Initial

Term

Loan

,

4.121

%

,

(

1-month

USD

LIBOR

+

4

%

),

3/31/27

.....................

United

States

983,912

985,762

Phoenix

Guarantor,

Inc.,

First

Lien,

Term

Loan

,

B1

,

3.38

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

3/05/26

..........................

United

States

728,957

728,199

Pluto

Acquisition

I,

Inc.,

Incremental

Term

Loan

,

5.5

%

,

(

1-month

USD

LIBOR

+

5

%

),

6/22/26

................................

United

States

117,952

118,542

4,946,408

a

a

a

a

a

a

Hotels,

Restaurants

&

Leisure

0.1%

Boyd

Gaming

Corp.,

Refinancing

Term

Loan

,

B

,

2.342

%

,

(

1-week

USD

LIBOR

+

2.25

%

),

9/15/23

..........................

United

States

1,967,236

1,964,875

Caesars

Resort

Collection

LLC,

Term

Loan

,

B,

2.871%,

(1-month

USD

LIBOR

+

2.75%),

12/23/24

.........

United

States

1,076,796

1,060,305

B1,

4.621%,

(1-month

USD

LIBOR

+

4.5%),

7/21/25

..........

United

States

88,551

88,657

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

35

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

g

Senior

Floating

Rate

Interests

(continued)

Hotels,

Restaurants

&

Leisure

(continued)

Caesars

Resort

Collection

LLC,

Term

Loan,

(continued)

IRB

Holding

Corp.,

Fourth

Amendment

Incremental

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

12/15/27

............

United

States

132,438

$

133,088

3,246,925

a

a

a

a

a

a

Household

Durables

0.0%

†

Playtika

Holding

Corp.,

Term

Loan

,

B

,

7

%

,

(

3-month

USD

LIBOR

+

6

%

),

12/10/24

......................................

United

States

275,500

277,581

Household

Products

0.0%

†

a,f,j

FGI

Operating

Co.

LLC,

Term

Loan

,

12

%

,

PIK,

(

3-month

USD

LIBOR

+

11

%

),

5/16/22

.....................................

United

States

1,133,719

596,345

Insurance

0.1%

Alliant

Holdings

Intermediate

LLC,

2018

Initial

Term

Loan

,

3.371

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

5/09/25

..................

United

States

995,586

992,410

Alliant

Holdings

Intermediate

LLC,

Term

Loan

,

B3

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

11/05/27

.........................

United

States

55,913

56,082

AssuredPartners,

Inc.,

2020

February

Refinancing

Term

Loan

,

3.647

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

2/12/27

.............

United

States

1,149,196

1,144,772

Asurion

LLC,

New

Term

Loan

,

B-8

,

3.371

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

12/23/26

....................................

United

States

67,323

67,070

Asurion

LLC,

Term

Loan

,

5.365%,

(1-month

USD

LIBOR

+

5.25%),

12/31/27

...........

United

States

21,265

21,477

B9,

3.365%,

(1-month

USD

LIBOR

+

3.25%),

12/31/27

........

United

States

423,165

421,313

2,703,124

a

a

a

a

a

a

Internet

&

Direct

Marketing

Retail

0.0%

†

MH

Sub

I

LLC

(Micro

Holding

Corp.),

First

Lien,

2020

June

New

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

9/13/24

....

United

States

110,088

110,570

IT

Services

0.2%

Arches

Buyer,

Inc.,

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/06/27

......................................

United

States

227,029

228,407

Aventiv

Technologies

LLC,

First

Lien,

Initial

Term

Loan

,

5.5

%

,

(

3-month

USD

LIBOR

+

4.5

%

),

11/01/24

..................

United

States

343,797

315,310

Aventiv

Technologies

LLC,

Second

Lien,

Initial

Term

Loan

,

9.25

%

,

(

6-month

USD

LIBOR

+

8.25

%

),

11/01/25

..................

United

States

790,636

647,970

Barracuda

Networks,

Inc.,

First

Lien,

2020

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

2/12/25

..................

United

States

227,446

227,967

Milano

Acquisition

Corp.,

Term

Loan

,

B

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

10/01/27

...............................

United

States

673,527

676,477

Pitney

Bowes,

Inc.,

Incremental

Term

Loan

,

B

,

5.63

%

,

(

1-month

USD

LIBOR

+

5.5

%

),

1/07/25

...............................

United

States

1,716,109

1,715,577

TIBCO

Software,

Inc.,

Term

Loan

,

B3

,

3.88

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

6/30/26

...................................

United

States

1,101,017

1,101,017

WEX,

Inc.,

Term

Loan

,

B3

,

2.371

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

5/15/26

...........................................

United

States

1,682,872

1,684,975

6,597,700

a

a

a

a

a

a

Leisure

Products

0.1%

Bass

Pro

Group

LLC,

Initial

Term

Loan

,

5.75

%

,

(

1-month

USD

LIBOR

+

5

%

),

9/25/24

................................

United

States

1,066,246

1,069,860

h

Hercules

Achievement,

Inc.

(Varsity

Brands

Holding

Co.,

Inc.),

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

12/16/24

..........................................

United

States

1,479,345

1,422,738

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

36

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

g

Senior

Floating

Rate

Interests

(continued)

Leisure

Products

(continued)

NASCAR

Holdings

LLC,

Initial

Term

Loan

,

2.897

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

10/19/26

.............................

United

States

1,339,730

$

1,341,612

3,834,210

a

a

a

a

a

a

Machinery

0.0%

†

Navistar,

Inc.,

Term

Loan

,

B

,

3.63

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

11/06/24

..........................................

United

States

1,329,154

1,330,982

Media

0.2%

h

Cengage

Learning,

Inc.,

2016

Refinancing

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

6/07/23

..................

United

States

2,616,879

2,523,666

Clear

Channel

Outdoor

Holdings,

Inc.,

Term

Loan

,

B

,

3.711

%

,

(

2-month

USD

LIBOR

+

3.5%;

3-month

USD

LIBOR

+

3.5%

),

8/21/26

...........................................

United

States

646,725

632,375

CSC

Holdings

LLC,

March

2017

Refinancing

Term

Loan

,

2.377

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

7/17/25

..................

United

States

1,169,932

1,165,276

Gray

Television,

Inc.,

Term

Loan

,

C

,

2.644

%

,

(

1-month

USD

LIBOR

+

2.5

%

),

1/02/26

......................................

United

States

321,812

321,812

Radiate

HoldCo

LLC,

Term

Loan

,

B

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

9/25/26

......................................

United

States

337,761

338,465

Univision

Communications,

Inc.,

First

Lien,

2020

Replacement

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/15/26

........

United

States

878,607

881,656

h

Virgin

Media

Bristol

LLC,

Term

Loan

,

Q

,

2.627

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

1/31/29

..............................

United

States

152,109

152,584

6,015,834

a

a

a

a

a

a

Multiline

Retail

0.0%

†

Harbor

Freight

Tools

USA,

Inc.,

Initial

Term

Loan

(2020)

,

4

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

10/19/27

.................

United

States

808,478

810,600

Oil,

Gas

&

Consumable

Fuels

0.1%

Buckeye

Partners

LP,

Initial

Term

Loan

,

2.897

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

11/01/26

.............................

United

States

284,959

285,414

h,k

Fieldwood

Energy

LLC,

Debtor-in-possession

Facility

Term

Loan

,

9.75

%

,

(

1-month

USD

LIBOR

+

8.75

%

),

8/04/21

.............

United

States

50,796

51,939

j

Fieldwood

Energy

LLC,

First

Lien,

Closing

Date

Term

Loan

,

6.25

%

,

(

3-month

USD

LIBOR

+

5.25

%

),

4/11/22

..................

United

States

4,260,617

1,105,992

UTEX

Industries,

Inc.,

First

Out

Term

Loan

,

8.5

%

,

(

1-month

USD

LIBOR

+

7

%

),

12/03/24

...............................

United

States

60,425

60,954

UTEX

Industries,

Inc.,

Second

Out

Term

Loan

,

11

%

,

(

1-month

USD

LIBOR

+

9.5

%

),

12/03/25

..............................

United

States

36,945

36,699

1,540,998

a

a

a

a

a

a

Paper

&

Forest

Products

0.0%

†

Appvion

Operations,

Inc.,

Term

Loan

,

7

%

,

(

3-month

USD

LIBOR

+

6

%

),

6/12/26

.......................................

United

States

266,865

264,419

Personal

Products

0.2%

h

Coty,

Inc.,

USD

Term

Loan

,

B

,

2.382

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

4/07/25

.....................................

United

States

2,528,195

2,390,016

Sunshine

Luxembourg

VII

SARL,

Facility

Term

Loan

,

B1

,

5

%

,

(

3-month

USD

LIBOR

+

4

%

),

10/01/26

....................

Luxembourg

1,980,000

1,988,801

4,378,817

a

a

a

a

a

a

Pharmaceuticals

0.1%

Bausch

Health

Cos.,

Inc.,

First

Incremental

Term

Loan

,

2.877

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

11/27/25

..................

United

States

1,500,000

1,500,120

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

37

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

g

Senior

Floating

Rate

Interests

(continued)

Pharmaceuticals

(continued)

Bausch

Health

Cos.,

Inc.,

Initial

Term

Loan

,

3.121

%

,

(

1-month

USD

LIBOR

+

3

%

),

6/02/25

................................

United

States

397,444

$

398,282

Catalent

Pharma

Solutions,

Inc.,

Dollar

Term

Loan

,

B2

,

3.25

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

5/18/26

..................

United

States

1,483,809

1,491,228

3,389,630

a

a

a

a

a

a

Professional

Services

0.0%

†

h

Dun

&

Bradstreet

Corp.

(The),

Initial

Term

Loan

Borrowing

,

B

,

3.378

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

2/06/26

............

United

States

24,195

24,291

Real

Estate

Management

&

Development

0.1%

h

Cushman

&

Wakefield

U.S.

Borrower

LLC,

Replacement

Term

Loan

,

2.873

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

8/21/25

............

United

States

2,468,014

2,463,127

Road

&

Rail

0.1%

Avis

Budget

Car

Rental

LLC,

New

Term

Loan

,

B

,

2.38

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

8/06/27

..........................

United

States

958,908

939,902

Kenan

Advantage

Group

Holdings

Corp.

(The),

Initial

Canadian

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3

%

),

7/29/22

.............

United

States

133,275

132,122

Kenan

Advantage

Group

Holdings

Corp.

(The),

Initial

U.S.

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3

%

),

7/29/22

.............

United

States

560,451

555,603

a

Onsite

Rental

Group

Operations

Pty.

Ltd.,

Term

Loan

,

B

,

5.5

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

10/26/22

..................

Australia

254,234

236,802

Ventia

Midco

Pty.

Ltd.,

2017

Refinancing

USD

Term

Loan

,

B

,

5

%

,

(

3-month

USD

LIBOR

+

4

%

),

5/21/26

.....................

Australia

645,350

645,350

2,509,779

a

a

a

a

a

a

Semiconductors

&

Semiconductor

Equipment

0.1%

ON

Semiconductor

Corp.,

2019

New

Replacement

Term

Loan

,

B4

,

2.121

%

,

(

1-month

USD

LIBOR

+

2

%

),

9/19/26

..............

United

States

1,492,564

1,498,161

Software

0.4%

h

athenahealth,

Inc.,

First

Lien,

Term

Loan

,

B

,

4.633

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

2/11/26

...............................

United

States

1,491,832

1,499,060

Blackboard,

Inc.,

First

Lien,

Term

Loan

,

B5

,

7

%

,

(

3-month

USD

LIBOR

+

6

%

),

6/30/24

................................

United

States

1,284,456

1,283,114

Ceridian

HCM

Holding,

Inc.,

Initial

Term

Loan

,

2.592

%

,

(

1-week

USD

LIBOR

+

2.5

%

),

4/30/25

...............................

United

States

616,591

616,437

DCert

Buyer,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.121

%

,

(

1-month

USD

LIBOR

+

4

%

),

10/16/26

...........................

United

States

915,693

919,127

Epicor

Software

Corp.,

Term

Loan

,

B

,

5.25

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

7/30/27

...................................

United

States

286,179

288,022

Greeneden

U.S.

Holdings

I

LLC,

Term

Loan

,

B

,

4.75

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/01/27

...........................

United

States

290,345

291,796

Ivanti

Software,

Inc.,

First

Lien,

Initial

Term

Loan

,

5.75

%

,

(

3-month

USD

LIBOR

+

4.75

%

),

12/01/27

.........................

United

States

350,000

353,500

LogMeIn,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.881

%

,

(

1-month

USD

LIBOR

+

4.75

%

),

8/31/27

..............................

United

States

669,745

667,930

Mitchell

International,

Inc.,

First

Lien,

Amendment

No.

2

New

Term

Loan

Facility

,

4.75

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

11/29/24

.

United

States

418,950

420,171

Perforce

Software,

Inc.,

First

Lien,

New

Term

Loan

,

3.871

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

7/01/26

..................

United

States

684,035

683,608

Quest

Software

US

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.462

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

5/16/25

............

United

States

1,562,772

1,565,006

Solera

LLC

(Solera

Finance,

Inc.),

Dollar

Term

Loan

,

2.871

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

3/03/23

..................

United

States

317,500

316,628

Surf

Holdings

SARL,

First

Lien,

Dollar

Term

Loan

,

3.726

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

3/05/27

...........................

Luxembourg

995,000

995,622

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

38

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

g

Senior

Floating

Rate

Interests

(continued)

Software

(continued)

Veritas

US,

Inc.,

Term

Loan

,

B

,

6.5

%

,

(

3-month

USD

LIBOR

+

5.5

%

),

9/01/25

...........................................

United

States

867,825

$

874,334

10,774,355

a

a

a

a

a

a

Specialty

Retail

0.1%

h

Party

City

Holdings,

Inc.,

2018

Replacement

Term

Loan

,

3.25

%

,

(

2-month

USD

LIBOR

+

2.5%;

3-month

USD

LIBOR

+

2.5%

),

8/19/22

...........................................

United

States

703,803

680,489

h

Petco

Animal

Supplies,

Inc.,

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

1/26/23

..............................

United

States

669,831

670,022

PetSmart,

Inc.,

Term

Loan

,

B

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

12/31/27

..........................................

United

States

212,647

211,584

Woof

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

1-year

USD

LIBOR

+

3.75

%

),

12/21/27

.............................

United

States

118,375

119,066

1,681,161

a

a

a

a

a

a

Technology

Hardware,

Storage

&

Peripherals

0.0%

†

Amentum

Government

Services

Holdings

LLC,

Incremental

Term

Loan

,

5.5

%

,

(

3-month

USD

LIBOR

+

4.75

%

),

1/29/27

.........

United

States

200,000

201,500

Cardtronics

USA,

Inc.,

Initial

Term

Loan

,

5

%

,

(

1-month

USD

LIBOR

+

4

%

),

6/29/27

.......................................

United

States

315,122

316,796

518,296

a

a

a

a

a

a

Wireless

Telecommunication

Services

0.0%

†

Altice

France

SA,

USD

Incremental

Term

Loan

,

B-13

,

4.127

%

,

(

1-month

USD

LIBOR

+

4

%

),

8/14/26

.....................

France

177,633

177,978

Total

Senior

Floating

Rate

Interests

(Cost

$103,377,100)

.........................

96,702,448

Marketplace

Loans

1.1%

Diversified

Financial

Services

1.1%

a

Lending

Club

-

LCX,

6.46%

-

28.8%,

4/24/22

-

4/14/25

.........

United

States

4,606,157

4,048,183

a

Lending

Club,

5%

-

28.8%,

9/20/21

-

3/16/25

.................

United

States

15,283,266

13,784,324

a

Square

Capital,

Zero

Cpn.,

3/18/22

-

7/26/22

.................

United

States

12,191,781

11,514,672

a

Upgrade,

13.64%

-

30.51%,

9/05/22

-

1/25/25

................

United

States

2,026,461

1,902,697

31,249,876

a

a

a

a

a

a

Total

Marketplace

Loans

(Cost

$33,333,204)

....................................

31,249,876

Foreign

Government

and

Agency

Securities

5.7%

e

Banque

Centrale

de

Tunisie

,

Senior

Bond

,

144A,

5.75

%

,

1/30/25

..

Tunisia

1,400,000

1,283,086

e

Banque

Ouest

Africaine

de

Developpement

,

Senior

Bond

,

144A,

5

%

,

7/27/27

...........................................

Supranational

l

3,900,000

4,415,853

e

Belarus

Government

Bond

,

Senior

Bond

,

144A,

7.625

%

,

6/29/27

..

Belarus

3,900,000

4,280,550

Brazil

Government

Bond

,

Senior

Bond

,

8.75

%

,

2/04/25

.........

Brazil

2,720,000

3,430,627

Colombia

Government

Bond

,

Senior

Bond

,

8.125

%

,

5/21/24

.....

Colombia

5,300,000

6,438,997

e

Dominican

Republic

Government

Bond

,

Senior

Note

,

144A,

8.9

%

,

2/15/23

...........................................

Dominican

Republic

218,500,000

DOP

3,882,517

e

Egypt

Government

Bond

,

Senior

Note

,

144A,

5.75

%

,

5/29/24

....

Egypt

3,800,000

4,099,383

e,m

Electricite

de

France

SA

,

Junior

Sub.

Bond

,

144A,

5.625%

to

1/22/24,

FRN

thereafter

,

Perpetual

.......................

France

2,200,000

2,348,500

Equinor

ASA

,

Senior

Note,

2.875%,

4/06/25

...........................

Norway

15,300,000

16,588,815

Senior

Note,

1.75%,

1/22/26

...........................

Norway

5,400,000

5,630,845

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

39

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

e

Export-Import

Bank

of

China

(The)

,

Senior

Bond

,

144A,

3.625

%

,

7/31/24

...........................................

China

2,100,000

$

2,313,872

e

Export-Import

Bank

of

India

,

Senior

Bond

,

144A,

3.875

%

,

2/01/28

.

India

3,400,000

3,727,726

Export-Import

Bank

of

Korea

,

Senior

Bond

,

2.875

%

,

1/21/25

.....

South

Korea

2,000,000

2,172,165

e

Gabon

Government

Bond

,

Senior

Bond

,

144A,

6.625

%

,

2/06/31

..

Gabon

4,800,000

4,752,662

Hungary

Government

Bond

,

Senior

Bond

,

5.375

%

,

2/21/23

......

Hungary

3,400,000

3,739,561

e

Indonesia

Government

Bond

,

Senior

Note

,

144A,

3.7

%

,

1/08/22

..

Indonesia

6,330,000

6,515,342

e

Iraq

Government

Bond

,

Senior

Bond

,

144A,

5.8

%

,

1/15/28

......

Iraq

6,562,500

6,197,888

e

Israel

Electric

Corp.

Ltd.

,

Senior

Secured

Bond

,

144A,

Reg

S,

4.25

%

,

8/14/28

...........................................

Israel

1,400,000

1,599,850

e

Kazakhstan

Government

Bond

,

Senior

Bond

,

144A,

3.875

%

,

10/14/24

..........................................

Kazakhstan

5,830,000

6,480,290

Korea

Development

Bank

(The)

,

Senior

Note

,

3.375

%

,

3/12/23

...

South

Korea

7,100,000

7,551,027

Mexico

Government

Bond

,

Senior

Bond

,

4.15

%

,

3/28/27

........

Mexico

6,100,000

6,988,374

e

Mongolia

Government

Bond

,

Senior

Note

,

144A,

8.75

%

,

3/09/24

..

Mongolia

1,360,000

1,579,640

e

Pakistan

Government

Bond

,

Senior

Bond

,

144A,

8.25

%

,

9/30/25

..

Pakistan

1,440,000

1,614,542

Peru

Government

Bond

,

Senior

Bond,

7.35%,

7/21/25

...........................

Peru

3,300,000

4,203,029

Senior

Bond,

2.783%,

1/23/31

..........................

Peru

800,000

862,600

e

Petroleos

Mexicanos

,

Senior

Note

,

144A,

6.875

%

,

10/16/25

.....

Mexico

990,000

1,080,090

Philippines

Government

Bond

,

Senior

Bond

,

4.2

%

,

1/21/24

......

Philippines

1,600,000

1,775,020

Poland

Government

Bond

,

Senior

Bond

,

5

%

,

3/23/22

..........

Poland

4,310,000

4,547,912

e

Russia

Government

Bond

,

Senior

Bond

,

144A,

4.875

%

,

9/16/23

..

Russia

4,400,000

4,846,010

South

Africa

Government

Bond

,

Senior

Bond

,

5.875

%

,

9/16/25

...

South

Africa

5,640,000

6,377,227

Turkey

Government

Bond

,

Senior

Note

,

6.375

%

,

10/14/25

.......

Turkey

5,980,000

6,490,752

e

Turkiye

Vakiflar

Bankasi

TAO

,

Covered

Note

,

Reg

S,

2.375

%

,

5/04/21

...........................................

Turkey

5,600,000

EUR

6,809,973

e

Ukraine

Government

Bond

,

Senior

Bond

,

144A,

7.375

%

,

9/25/32

.

Ukraine

4,500,000

4,840,740

n

Uruguay

Government

Bond

,

Index

Linked,

Senior

Bond

,

3.7

%

,

6/26/37

...........................................

Uruguay

162,823,021

UYU

4,372,082

Total

Foreign

Government

and

Agency

Securities

(Cost

$149,991,703)

............

153,837,547

U.S.

Government

and

Agency

Securities

21.4%

U.S.

Treasury

Notes

,

2.125%,

9/30/21

.....................................

United

States

10,000,000

10,136,605

1.75%,

5/15/22

.....................................

United

States

117,000,000

119,490,820

1.875%,

8/31/22

.....................................

United

States

75,000,000

77,097,656

1.625%,

4/30/23

.....................................

United

States

90,000,000

93,016,406

2.75%,

5/31/23

.....................................

United

States

98,000,000

103,966,133

2.875%,

10/31/23

....................................

United

States

52,000,000

55,874,609

2.875%,

11/30/23

....................................

United

States

70,000,000

75,356,641

n

0.25%,

1/15/25

.....................................

United

States

1,340,000

1,603,103

n

0.375%,

7/15/25

.....................................

United

States

1,200,000

1,458,807

2.875%,

7/31/25

.....................................

United

States

12,000,000

13,349,062

n

0.625%,

1/15/26

.....................................

United

States

11,000,000

13,554,330

n

0.125%,

7/15/26

.....................................

United

States

10,000,000

12,043,499

n

0.375%,

7/15/27

.....................................

United

States

3,840,000

4,636,986

Total

U.S.

Government

and

Agency

Securities

(Cost

$578,204,465)

................

581,584,657

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

40

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Asset-Backed

Securities

19.2%

Airlines

0.0%

†

American

Airlines

Pass-Through

Trust

,

2016-2

,

AA

,

3.2

%

,

6/15/28

.

United

States

40,475

$

40,194

United

Airlines

Pass-Through

Trust

,

2020-1

,

B

,

4.875

%

,

7/15/27

..

United

States

450,000

463,525

503,719

a

a

a

a

a

a

Commercial

Services

&

Supplies

0.9%

e,o

Armada

Euro

CLO

IV

DAC

,

4A

,

B

,

144A,

FRN

,

1.7

%

,

(

3-month

EURIBOR

+

1.7

%

),

7/15/33

............................

Ireland

12,400,000

EUR

15,090,554

e,o

LCM

XXII

Ltd.

,

22A

,

A2R

,

144A,

FRN

,

1.674

%

,

(

3-month

USD

LIBOR

+

1.45

%

),

10/20/28

.............................

United

States

8,500,000

8,437,393

23,527,947

a

a

a

a

a

a

Consumer

Finance

0.8%

Discover

Card

Execution

Note

Trust

,

o

2019-A2,

A,

FRN,

0.397%,

(1-month

USD

LIBOR

+

0.27%),

12/15/23

..........................................

United

States

9,250,000

9,269,181

2019-A3,

A,

1.89%,

10/15/24

...........................

United

States

13,340,000

13,723,444

22,992,625

a

a

a

a

a

a

Diversified

Financial

Services

17.5%

e,o

Adagio

CLO

VIII

DAC

,

VIII-A

,

B1

,

144A,

FRN

,

1.65

%

,

(

3-month

EURIBOR

+

1.65

%

),

4/15/32

...........................

Ireland

500,000

EUR

608,327

e,o

Alinea

CLO

Ltd.

,

2018-1A

,

B

,

144A,

FRN

,

1.874

%

,

(

3-month

USD

LIBOR

+

1.65

%

),

7/20/31

..............................

United

States

5,300,000

5,286,009

e

American

Homes

4

Rent

Trust

,

2014-SFR3,

A,

144A,

3.678%,

12/17/36

...................

United

States

720,526

779,174

2015-SFR1,

A,

144A,

3.467%,

4/17/52

....................

United

States

5,495,640

5,933,601

o

Ameriquest

Mortgage

Securities,

Inc.

,

2004-R4

,

M1

,

FRN

,

0.955

%

,

(

1-month

USD

LIBOR

+

0.825

%

),

6/25/34

.................

United

States

59,613

61,667

e,o

AMMC

CLO

15

Ltd.

,

2014-15A

,

BRR

,

144A,

FRN

,

2.041

%

,

(

3-month

USD

LIBOR

+

1.8

%

),

1/15/32

...........................

United

States

1,494,355

1,471,639

e,o

AMMC

CLO

21

Ltd.

,

2017-21A

,

C

,

144A,

FRN

,

2.314

%

,

(

3-month

USD

LIBOR

+

2.1

%

),

11/02/30

..........................

United

States

400,000

396,302

e,o

AMMC

CLO

XI

Ltd.

,

2012-11A,

BR2,

144A,

FRN,

1.814%,

(3-month

USD

LIBOR

+

1.6%),

4/30/31

......................................

United

States

1,700,000

1,700,519

2012-11A,

CR2,

144A,

FRN,

2.114%,

(3-month

USD

LIBOR

+

1.9%),

4/30/31

......................................

United

States

1,850,000

1,795,846

e,o

Antares

CLO

Ltd.

,

2018-1A

,

B

,

144A,

FRN

,

1.874

%

,

(

3-month

USD

LIBOR

+

1.65

%

),

4/20/31

..............................

United

States

6,000,000

5,918,364

e,o

Ares

European

CLO

VIII

BV

,

8A

,

BR

,

144A,

FRN

,

1.6

%

,

(

3-month

EURIBOR

+

1.6

%

),

4/17/32

............................

Ireland

700,000

EUR

850,639

e,o

Ares

L

CLO

Ltd.

,

2018-50A

,

B

,

144A,

FRN

,

1.941

%

,

(

3-month

USD

LIBOR

+

1.7

%

),

1/15/32

...............................

United

States

4,000,000

4,010,750

e,o

Ares

XLVIII

CLO

Ltd.

,

2018-48A,

B,

144A,

FRN,

1.804%,

(3-month

USD

LIBOR

+

1.58%),

7/20/30

.....................................

United

States

1,000,000

999,000

2018-48A,

C,

144A,

FRN,

2.024%,

(3-month

USD

LIBOR

+

1.8%),

7/20/30

...........................................

United

States

3,135,000

3,111,581

e,o

Atrium

XIV

LLC

,

14A,

B,

144A,

FRN,

1.923%,

(3-month

USD

LIBOR

+

1.7%),

8/23/30

...........................................

United

States

2,400,000

2,404,979

14A,

C,

144A,

FRN,

2.173%,

(3-month

USD

LIBOR

+

1.95%),

8/23/30

...........................................

United

States

4,000,000

4,002,485

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

41

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Asset-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

e,o

Atrium

XV

,

15A

,

B

,

144A,

FRN

,

1.968

%

,

(

3-month

USD

LIBOR

+

1.75

%

),

1/23/31

.....................................

United

States

2,000,000

$

1,998,549

e,o

Bain

Capital

Credit

CLO

Ltd.

,

2018-1A

,

A1

,

144A,

FRN

,

1.178

%

,

(

3-month

USD

LIBOR

+

0.96

%

),

4/23/31

..................

United

States

2,000,000

1,999,719

e,o

BCC

Middle

Market

CLO

LLC

,

2018-1A

,

A2

,

144A,

FRN

,

2.374

%

,

(

3-month

USD

LIBOR

+

2.15

%

),

10/20/30

.................

United

States

2,100,000

2,052,237

e,o

Betony

CLO

2

Ltd.

,

2018-1A

,

A2

,

144A,

FRN

,

1.814

%

,

(

3-month

USD

LIBOR

+

1.6

%

),

4/30/31

...........................

United

States

3,500,000

3,498,976

e,o

Blackrock

European

CLO

IX

DAC

,

9A,

A,

144A,

FRN,

0.9%,

(3-month

EURIBOR

+

0.9%),

12/15/32

Ireland

3,300,000

EUR

4,001,107

9A,

B,

144A,

FRN,

1.55%,

(3-month

EURIBOR

+

1.55%),

12/15/32

Ireland

1,100,000

EUR

1,330,817

e,o

BlueMountain

CLO

Ltd.

,

2012-2A,

BR2,

144A,

FRN,

1.674%,

(3-month

USD

LIBOR

+

1.45%),

11/20/28

....................................

United

States

2,970,000

2,950,015

2012-2A,

DR2,

144A,

FRN,

3.124%,

(3-month

USD

LIBOR

+

2.9%),

11/20/28

.....................................

United

States

2,295,000

2,240,502

2014-2A,

CR2,

144A,

FRN,

2.424%,

(3-month

USD

LIBOR

+

2.2%),

10/20/30

.....................................

United

States

1,300,000

1,299,145

2018-3A,

C,

144A,

FRN,

2.418%,

(3-month

USD

LIBOR

+

2.2%),

10/25/30

..........................................

United

States

1,785,715

1,784,721

e,o

BlueMountain

CLO

XXIV

Ltd.

,

2019-24A

,

D

,

144A,

FRN

,

4.124

%

,

(

3-month

USD

LIBOR

+

3.9

%

),

4/20/31

...................

United

States

1,000,000

1,000,556

e,o

BlueMountain

Fuji

EUR

CLO

V

DAC

,

5A

,

B

,

144A,

FRN

,

1.55

%

,

(

3-month

EURIBOR

+

1.55

%

),

1/15/33

....................

Ireland

4,550,000

EUR

5,534,400

e,o

BlueMountain

Fuji

US

CLO

III

Ltd.

,

2017-3A,

A2,

144A,

FRN,

1.391%,

(3-month

USD

LIBOR

+

1.15%),

1/15/30

.....................................

United

States

1,000,000

985,783

2017-3A,

C,

144A,

FRN,

1.941%,

(3-month

USD

LIBOR

+

1.7%),

1/15/30

...........................................

United

States

500,000

492,219

e,o

Carlyle

Global

Market

Strategies

CLO

Ltd.

,

2014-1A,

A2R2,

144A,

FRN,

1.353%,

(3-month

USD

LIBOR

+

1.13%),

4/17/31

.....................................

United

States

1,200,000

1,177,596

2014-1A,

DR,

144A,

FRN,

2.823%,

(3-month

USD

LIBOR

+

2.6%),

4/17/31

...........................................

United

States

533,000

504,396

2014-4RA,

A2,

144A,

FRN,

1.841%,

(3-month

USD

LIBOR

+

1.6%),

7/15/30

......................................

United

States

12,000,000

11,912,083

e,o

Carlyle

GMS

Finance

MM

CLO

LLC

,

2015-1A

,

A2R

,

144A,

FRN

,

2.441

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

10/15/31

............

United

States

7,300,000

7,163,367

e,o

Carlyle

US

CLO

Ltd.

,

2017-4A,

B,

144A,

FRN,

2.091%,

(3-month

USD

LIBOR

+

1.85%),

1/15/30

...........................................

United

States

1,107,000

1,082,983

2017-4A,

C,

144A,

FRN,

3.041%,

(3-month

USD

LIBOR

+

2.8%),

1/15/30

...........................................

United

States

400,000

386,786

2017-5A,

A2,

144A,

FRN,

1.624%,

(3-month

USD

LIBOR

+

1.4%),

1/20/30

...........................................

United

States

13,440,000

13,242,710

2017-5A,

B,

144A,

FRN,

2.024%,

(3-month

USD

LIBOR

+

1.8%),

1/20/30

...........................................

United

States

2,200,000

2,137,669

e,o

Cent

CLO

21

Ltd.

,

2014-21A

,

CR2

,

144A,

FRN

,

3.413

%

,

(

3-month

USD

LIBOR

+

3.2

%

),

7/27/30

...........................

United

States

502,000

487,519

e

CF

Hippolyta

LLC

,

2020-1

,

A1

,

144A,

1.69

%

,

7/15/60

..........

United

States

3,493,027

3,569,063

e,p

Consumer

Loan

Underlying

Bond

Certificate

Issuer

Trust

I

,

2018-14,

PT,

144A,

FRN,

9.46%,

9/16/41

..................

United

States

567,165

553,251

2018-29,

PT,

144A,

FRN,

27.093%,

12/15/43

...............

United

States

342,322

333,771

2018-8,

PT,

144A,

FRN,

6.162%,

6/17/41

..................

United

States

231,504

217,182

2019-26,

PT,

144A,

FRN,

19.577%,

8/15/44

................

United

States

1,387,364

1,347,044

2019-31,

PT,

144A,

FRN,

19.55%,

9/15/44

.................

United

States

1,254,161

1,204,486

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

42

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Asset-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

e,p

Consumer

Loan

Underlying

Bond

Certificate

Issuer

Trust

I,

(continued)

2019-37,

PT,

144A,

FRN,

18.312%,

10/17/44

...............

United

States

1,223,591

$

1,172,890

2019-42,

PT,

144A,

FRN,

18.677%,

11/15/44

...............

United

States

1,230,236

1,190,231

2019-51,

PT,

144A,

FRN,

16.134%,

1/15/45

................

United

States

3,252,112

3,145,438

2019-52,

PT,

144A,

FRN,

16.405%,

1/15/45

................

United

States

4,016,469

3,911,975

2019-S1,

PT,

144A,

FRN,

15.064%,

4/15/44

................

United

States

841,660

805,047

2019-S2,

PT,

144A,

FRN,

14.235%,

5/16/44

................

United

States

652,375

633,287

2019-S3,

PT,

144A,

FRN,

14.033%,

6/15/44

................

United

States

465,627

450,132

2019-S4,

PT,

144A,

FRN,

11.862%,

8/15/44

................

United

States

1,000,105

966,949

2019-S5,

PT,

144A,

FRN,

13.112%,

9/15/44

................

United

States

1,001,769

968,298

2019-S6,

PT,

144A,

FRN,

11.165%,

10/17/44

...............

United

States

971,428

923,057

2019-S7,

PT,

144A,

FRN,

11.301%,

12/15/44

...............

United

States

1,928,277

1,842,123

2019-S8,

PT,

144A,

FRN,

10.21%,

1/15/45

.................

United

States

2,381,790

2,263,692

2020-2,

PT,

144A,

FRN,

16.489%,

3/15/45

.................

United

States

3,900,574

3,781,255

2020-7,

PT,

144A,

FRN,

16.191%,

4/17/45

.................

United

States

2,335,654

2,241,990

e,o

Cook

Park

CLO

Ltd.

,

2018-1A

,

A2

,

144A,

FRN

,

1.343

%

,

(

3-month

USD

LIBOR

+

1.12

%

),

4/17/30

..........................

United

States

1,000,000

992,212

o

CWABS,

Inc.

,

2004-1

,

M1

,

FRN

,

0.88

%

,

(

1-month

USD

LIBOR

+

0.75

%

),

3/25/34

.....................................

United

States

68,960

68,812

e,o

Dryden

55

CLO

Ltd.

,

2018-55A,

C,

144A,

FRN,

2.141%,

(3-month

USD

LIBOR

+

1.9%),

4/15/31

...........................................

United

States

600,000

594,709

2018-55A,

D,

144A,

FRN,

3.091%,

(3-month

USD

LIBOR

+

2.85%),

4/15/31

.....................................

United

States

300,000

290,438

e,o

Dryden

58

CLO

Ltd.

,

2018-58A,

A2,

144A,

FRN,

1.473%,

(3-month

USD

LIBOR

+

1.25%),

7/17/31

.....................................

United

States

1,600,000

1,581,110

2018-58A,

B,

144A,

FRN,

1.723%,

(3-month

USD

LIBOR

+

1.5%),

7/17/31

...........................................

United

States

11,000,000

10,950,852

e,o

Dryden

64

CLO

Ltd.

,

2018-64A

,

C

,

144A,

FRN

,

1.973

%

,

(

3-month

USD

LIBOR

+

1.75

%

),

4/18/31

..........................

United

States

750,000

743,000

e,o

Dryden

70

CLO

Ltd.

,

2018-70A

,

B

,

144A,

FRN

,

1.923

%

,

(

3-month

USD

LIBOR

+

1.7

%

),

1/16/32

...........................

United

States

560,580

559,709

e,o

Eaton

Vance

CLO

Ltd.

,

2014-1RA

,

C

,

144A,

FRN

,

2.341

%

,

(

3-month

USD

LIBOR

+

2.1

%

),

7/15/30

...........................

United

States

789,030

786,633

e,o

Ellington

CLO

III

Ltd.

,

2018-3A

,

A1

,

144A,

FRN

,

1.874

%

,

(

3-month

USD

LIBOR

+

1.65

%

),

7/20/30

..........................

United

States

3,750,139

3,749,321

e

FirstKey

Homes

Trust

,

2020-SFR2

,

A

,

144A,

1.266

%

,

10/19/37

...

United

States

4,230,000

4,260,775

e,o

Galaxy

XXVII

CLO

Ltd.

,

2018-27A

,

A

,

144A,

FRN

,

1.241

%

,

(

3-month

USD

LIBOR

+

1.02

%

),

5/16/31

..........................

United

States

1,500,000

1,501,802

e,o

GoldentTree

Loan

Management

US

CLO

1

Ltd.

,

2021-9A

,

A

,

144A,

FRN

,

Zero

Cpn.,

(

3-month

USD

LIBOR

+

1.07

%

),

1/20/33

.....

United

States

15,731,000

15,731,000

e,o

Halcyon

Loan

Advisors

Funding

Ltd.

,

2018-1A

,

A2

,

144A,

FRN

,

2.024

%

,

(

3-month

USD

LIBOR

+

1.8

%

),

7/21/31

.............

United

States

5,000,000

4,914,575

e,o

Harbor

Park

CLO

18-1

Ltd.

,

2018-1A,

A2,

144A,

FRN,

1.624%,

(3-month

USD

LIBOR

+

1.4%),

1/20/31

...........................................

United

States

1,710,526

1,712,136

2018-1A,

B1,

144A,

FRN,

1.924%,

(3-month

USD

LIBOR

+

1.7%),

1/20/31

...........................................

United

States

466,667

468,058

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

43

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Asset-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

e,o

Hayfin

US

XII

Ltd.

,

2018-9A

,

BR

,

144A,

FRN

,

2.018

%

,

(

3-month

USD

LIBOR

+

1.8

%

),

4/28/31

...........................

United

States

5,200,000

$

5,208,487

e,o

Holland

Park

CLO

DAC

,

1A

,

A1RR

,

144A,

FRN

,

0.92

%

,

(

3-month

EURIBOR

+

0.92

%

),

11/14/32

..........................

Ireland

15,000,000

EUR

18,094,745

e,o

HPS

Loan

Management

Ltd.

,

13A-18

,

A2

,

144A,

FRN

,

1.691

%

,

(

3-month

USD

LIBOR

+

1.45

%

),

10/15/30

.................

United

States

1,400,000

1,398,646

e,o

LCM

26

Ltd.

,

26A,

B,

144A,

FRN,

1.624%,

(3-month

USD

LIBOR

+

1.4%),

1/20/31

...........................................

United

States

4,500,000

4,443,326

26A,

C,

144A,

FRN,

2.024%,

(3-month

USD

LIBOR

+

1.8%),

1/20/31

...........................................

United

States

2,000,000

1,944,186

e,o

LCM

XVI

LP

,

16A

,

BR2

,

144A,

FRN

,

1.991

%

,

(

3-month

USD

LIBOR

+

1.75

%

),

10/15/31

..................................

United

States

1,756,602

1,758,940

o

Lehman

XS

Trust

,

2005-4

,

1A4

,

FRN

,

0.69

%

,

(

1-month

USD

LIBOR

+

0.56

%

),

10/25/35

..................................

United

States

185,347

185,389

e,o

Long

Point

Park

CLO

Ltd.

,

2017-1A,

A2,

144A,

FRN,

1.598%,

(3-month

USD

LIBOR

+

1.375%),

1/17/30

....................................

United

States

3,400,000

3,373,198

2017-1A,

B,

144A,

FRN,

1.923%,

(3-month

USD

LIBOR

+

1.7%),

1/17/30

...........................................

United

States

2,000,000

1,968,448

e,o

Madison

Park

Euro

Funding

VIII

DAC

,

8A,

ARN,

144A,

FRN,

0.95%,

(3-month

EURIBOR

+

0.95%),

4/15/32

...........................................

Ireland

24,700,000

EUR

29,940,639

8A,

BRN,

144A,

FRN,

1.7%,

(3-month

EURIBOR

+

1.7%),

4/15/32

Ireland

2,800,000

EUR

3,407,280

e,o

Madison

Park

Funding

XIII

Ltd.

,

2014-13A

,

DR2

,

144A,

FRN

,

3.073

%

,

(

3-month

USD

LIBOR

+

2.85

%

),

4/19/30

............

United

States

332,000

326,397

e,o

Madison

Park

Funding

XIV

Ltd.

,

2014-14A

,

BRR

,

144A,

FRN

,

1.922

%

,

(

3-month

USD

LIBOR

+

1.7

%

),

10/22/30

............

United

States

2,500,000

2,503,228

e,o

Madison

Park

Funding

XLII

Ltd.

,

13A,

B,

144A,

FRN,

1.718%,

(3-month

USD

LIBOR

+

1.5%),

11/21/30

..........................................

United

States

3,000,000

2,993,091

13A,

C,

144A,

FRN,

2.018%,

(3-month

USD

LIBOR

+

1.8%),

11/21/30

..........................................

United

States

1,600,000

1,580,485

e,o

Madison

Park

Funding

XXII

Ltd.

,

2016-22A

,

CR

,

144A,

FRN

,

2.241

%

,

(

3-month

USD

LIBOR

+

2

%

),

1/15/33

..............

United

States

2,800,000

2,754,931

e,o

Madison

Park

Funding

XXIX

Ltd.

,

2018-29A

,

B

,

144A,

FRN

,

1.973

%

,

(

3-month

USD

LIBOR

+

1.75

%

),

10/18/30

.................

United

States

4,000,000

4,005,408

e,o

Madison

Park

Funding

XXVIII

Ltd.

,

2018-28A

,

C

,

144A,

FRN

,

2.091

%

,

(

3-month

USD

LIBOR

+

1.85

%

),

7/15/30

............

United

States

4,200,000

4,195,758

e,o

Madison

Park

Funding

XXXI

Ltd.

,

2018-31A,

A2A,

144A,

FRN,

1.718%,

(3-month

USD

LIBOR

+

1.5%),

1/23/31

......................................

United

States

3,000,000

3,001,078

2018-31A,

B,

144A,

FRN,

1.918%,

(3-month

USD

LIBOR

+

1.7%),

1/23/31

...........................................

United

States

6,000,000

6,001,563

e,p

Mill

City

Mortgage

Loan

Trust

,

2016-1,

A1,

144A,

FRN,

2.5%,

4/25/57

....................

United

States

2,712,433

2,731,014

2017-1,

A1,

144A,

FRN,

2.75%,

11/25/58

..................

United

States

538,866

546,126

2017-3,

A1,

144A,

FRN,

2.75%,

1/25/61

...................

United

States

4,456,951

4,577,597

2018-1,

A1,

144A,

FRN,

3.25%,

5/25/62

...................

United

States

10,628,845

11,010,737

2018-4,

A1B,

144A,

FRN,

3.5%,

4/25/66

...................

United

States

9,683,384

10,289,560

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

44

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Asset-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

e,o

Neuberger

Berman

CLO

XVIII

Ltd.

,

2014-18A

,

A1BR

,

144A,

FRN

,

1.624

%

,

(

3-month

USD

LIBOR

+

1.4

%

),

10/21/30

............

United

States

2,295,000

$

2,270,513

e,o

Neuberger

Berman

Loan

Advisers

CLO

27

Ltd.

,

2018-27A

,

C

,

144A,

FRN

,

1.941

%

,

(

3-month

USD

LIBOR

+

1.7

%

),

1/15/30

........

United

States

500,000

495,308

e,o

NZCG

Funding

Ltd.

,

2015-1A

,

A2R

,

144A,

FRN

,

1.783

%

,

(

3-month

USD

LIBOR

+

1.55

%

),

2/26/31

..........................

United

States

7,920,000

7,905,831

e,o

Octagon

Investment

Partners

18-R

Ltd.

,

2018-18A,

A1A,

144A,

FRN,

1.183%,

(3-month

USD

LIBOR

+

0.96%),

4/16/31

.....................................

United

States

1,000,000

996,331

2018-18A,

C,

144A,

FRN,

2.923%,

(3-month

USD

LIBOR

+

2.7%),

4/16/31

...........................................

United

States

1,000,000

972,552

e,o

Octagon

Investment

Partners

26

Ltd.

,

2016-1A

,

A2R

,

144A,

FRN

,

1.591

%

,

(

3-month

USD

LIBOR

+

1.35

%

),

7/15/30

............

United

States

1,600,000

1,573,880

e,o

Octagon

Investment

Partners

28

Ltd.

,

2016-1A

,

A2R

,

144A,

FRN

,

1.668

%

,

(

3-month

USD

LIBOR

+

1.45

%

),

10/24/30

...........

United

States

4,000,000

3,985,866

e,o

Octagon

Investment

Partners

31

LLC

,

2017-1A

,

C

,

144A,

FRN

,

2.624

%

,

(

3-month

USD

LIBOR

+

2.4

%

),

7/20/30

.............

United

States

280,761

281,209

e,o

Octagon

Investment

Partners

33

Ltd.

,

2017-1A,

A2,

144A,

FRN,

1.724%,

(3-month

USD

LIBOR

+

1.5%),

1/20/31

...........................................

United

States

2,000,000

1,995,000

2017-1A,

C,

144A,

FRN,

2.974%,

(3-month

USD

LIBOR

+

2.75%),

1/20/31

...........................................

United

States

250,000

241,961

e,o

Octagon

Investment

Partners

35

Ltd.

,

2018-1A

,

A1B

,

144A,

FRN

,

1.324

%

,

(

3-month

USD

LIBOR

+

1.1

%

),

1/20/31

.............

United

States

2,000,000

1,973,342

e,o

Octagon

Investment

Partners

37

Ltd.

,

2018-2A

,

A2

,

144A,

FRN

,

1.798

%

,

(

3-month

USD

LIBOR

+

1.58

%

),

7/25/30

............

United

States

1,000,000

1,001,020

e,o

Octagon

Investment

Partners

XVI

Ltd.

,

2013-1A,

BR,

144A,

FRN,

1.823%,

(3-month

USD

LIBOR

+

1.6%),

7/17/30

...........................................

United

States

4,000,000

3,998,536

2013-1A,

CR,

144A,

FRN,

2.073%,

(3-month

USD

LIBOR

+

1.85%),

7/17/30

.....................................

United

States

3,000,000

2,931,976

e,o

Octagon

Investment

Partners

XVII

Ltd.

,

2013-1A

,

BR2

,

144A,

FRN

,

1.618

%

,

(

3-month

USD

LIBOR

+

1.4

%

),

1/25/31

.............

United

States

9,640,000

9,596,620

e,o

Octagon

Investment

Partners

XXII

Ltd.

,

2014-1A

,

CRR

,

144A,

FRN

,

2.122

%

,

(

3-month

USD

LIBOR

+

1.9

%

),

1/22/30

.............

United

States

2,100,000

2,070,467

e,o

Octagon

Investment

Partners

XXIII

Ltd.

,

2015-1A,

BR,

144A,

FRN,

1.441%,

(3-month

USD

LIBOR

+

1.2%),

7/15/27

...........................................

United

States

1,200,000

1,192,210

2015-1A,

DR,

144A,

FRN,

2.791%,

(3-month

USD

LIBOR

+

2.55%),

7/15/27

.....................................

United

States

600,000

591,596

e,p

Prosper

Pass-Thru

Trust

III

,

2020-PT1,

A,

144A,

FRN,

8.796%,

3/15/26

.................

United

States

2,399,875

2,364,773

2020-PT2,

A,

144A,

FRN,

9.444%,

4/15/26

.................

United

States

2,658,240

2,614,289

2020-PT3,

A,

144A,

FRN,

7.183%,

5/15/26

.................

United

States

815,642

823,360

o

RAAC

Trust

,

2004-SP1

,

AII

,

FRN

,

0.83

%

,

(

1-month

USD

LIBOR

+

0.7

%

),

3/25/34

......................................

United

States

174,798

175,830

e,o

Race

Point

X

CLO

Ltd.

,

2016-10A

,

B1R

,

144A,

FRN

,

1.868

%

,

(

3-month

USD

LIBOR

+

1.65

%

),

7/25/31

..................

United

States

700,000

699,125

e,o

Sculptor

CLO

XXV

Ltd.

,

25A

,

A1

,

144A,

FRN

,

0

%

,

(

3-month

USD

LIBOR

+

1.27

%

),

1/15/31

..............................

United

States

10,726,000

10,726,000

e

Towd

Point

Mortgage

Trust

,

2015-1,

AE,

144A,

3%,

10/25/53

.........................

United

States

602

609

p

2015-2,

1A12,

144A,

FRN,

2.75%,

11/25/60

................

United

States

113,738

114,053

p

2015-2,

2A1,

144A,

FRN,

3.75%,

11/25/57

.................

United

States

34,954

34,965

p

2016-4,

A1,

144A,

FRN,

2.25%,

7/25/56

...................

United

States

7,274,656

7,362,987

p

2016-5,

A1,

144A,

FRN,

2.5%,

10/25/56

...................

United

States

2,761,387

2,818,747

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

45

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Asset-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

e

Towd

Point

Mortgage

Trust,

(continued)

p

2017-1,

A1,

144A,

FRN,

2.75%,

10/25/56

..................

United

States

7,867,645

$

8,018,003

p

2017-2,

A1,

144A,

FRN,

2.75%,

4/25/57

...................

United

States

8,025,887

8,189,076

o

2017-5,

A1,

144A,

FRN,

0.73%,

(1-month

USD

LIBOR

+

0.6%),

2/25/57

...........................................

United

States

1,718,690

1,719,549

p

2018-3,

A1,

144A,

FRN,

3.75%,

5/25/58

...................

United

States

11,250,059

12,028,496

p

2018-4,

A1,

144A,

FRN,

3%,

6/25/58

.....................

United

States

15,069,806

16,031,675

p

2019-1,

A1,

144A,

FRN,

3.75%,

3/25/58

...................

United

States

12,211,453

13,143,313

e

Upgrade

Master

Pass-Thru

Trust

,

p

2019-PT1,

A,

144A,

FRN,

11.523%,

6/15/25

................

United

States

519,913

468,966

2019-PT2,

A,

144A,

1.1%,

2/15/26

.......................

United

States

2,179,091

2,149,952

e,o

Voya

CLO

Ltd.

,

2013-2A,

A1R,

144A,

FRN,

1.188%,

(3-month

USD

LIBOR

+

0.97%),

4/25/31

.....................................

United

States

11,800,000

11,729,108

2013-2A,

CR,

144A,

FRN,

2.968%,

(3-month

USD

LIBOR

+

2.75%),

4/25/31

.....................................

United

States

375,000

359,534

2014-1A,

BR2,

144A,

FRN,

2.123%,

(3-month

USD

LIBOR

+

1.9%),

4/18/31

......................................

United

States

2,750,000

2,726,019

2014-1A,

CR2,

144A,

FRN,

3.023%,

(3-month

USD

LIBOR

+

2.8%),

4/18/31

......................................

United

States

600,000

579,107

2016-3A,

A2R,

144A,

FRN,

1.623%,

(3-month

USD

LIBOR

+

1.4%),

10/18/31

.....................................

United

States

818,182

809,566

2016-3A,

CR,

144A,

FRN,

3.473%,

(3-month

USD

LIBOR

+

3.25%),

10/18/31

....................................

United

States

1,698,113

1,673,544

2017-3A,

B,

144A,

FRN,

2.574%,

(3-month

USD

LIBOR

+

2.35%),

7/20/30

...........................................

United

States

507,690

508,445

2018-2A,

A2,

144A,

FRN,

1.491%,

(3-month

USD

LIBOR

+

1.25%),

7/15/31

.....................................

United

States

2,500,000

2,457,141

e,o

West

CLO

Ltd.

,

2014-1A

,

BR

,

144A,

FRN

,

2.073

%

,

(

3-month

USD

LIBOR

+

1.85

%

),

7/18/26

..............................

United

States

2,410,000

2,408,696

474,070,443

a

a

a

a

a

a

Thrifts

&

Mortgage

Finance

0.0%

†

p

Conseco

Finance

Corp.

,

1998-6

,

A8

,

FRN

,

6.66

%

,

6/01/30

......

United

States

692,534

699,585

p

Conseco

Finance

Securitizations

Corp.

,

2002-2

,

M1

,

FRN

,

7.424

%

,

3/01/33

...........................................

United

States

458,342

484,353

o

Countrywide

Asset-Backed

Certificates

Trust

,

2002-3

,

1A1

,

FRN

,

0.87

%

,

(

1-month

USD

LIBOR

+

0.74

%

),

5/25/32

.............

United

States

1,078

1,060

1,184,998

a

a

a

a

a

a

Total

Asset-Backed

Securities

(Cost

$509,548,630)

..............................

522,279,732

Commercial

Mortgage-Backed

Securities

2.3%

Diversified

Financial

Services

1.8%

e

BAMLL

Commercial

Mortgage

Securities

Trust

,

2012-PARK,

A,

144A,

2.959%,

12/10/30

...................

United

States

3,300,000

3,443,175

2015-200P,

A,

144A,

3.218%,

4/14/33

....................

United

States

600,000

652,454

e,o

BX

Commercial

Mortgage

Trust

,

2018-IND,

A,

144A,

FRN,

0.876%,

(1-month

USD

LIBOR

+

0.75%),

11/15/35

..........................................

United

States

3,123,429

3,133,106

2019-XL,

A,

144A,

FRN,

1.046%,

(1-month

USD

LIBOR

+

0.92%),

10/15/36

..........................................

United

States

3,654,797

3,667,737

2020-BXLP,

A,

144A,

FRN,

0.926%,

(1-month

USD

LIBOR

+

0.8%),

12/15/36

.....................................

United

States

11,539,438

11,586,734

2020-FOX,

A,

144A,

FRN,

1.126%,

(1-month

USD

LIBOR

+

1%),

11/15/32

..........................................

United

States

13,470,000

13,541,283

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

46

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Commercial

Mortgage-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

e

BXP

Trust

,

2017-GM

,

A

,

144A,

3.379

%

,

6/13/39

..............

United

States

2,000,000

$

2,241,732

Commercial

Mortgage

Trust

,

p

2006-GG7,

AJ,

FRN,

6.214%,

7/10/38

....................

United

States

842,609

758,559

e,p

2014-277P,

A,

144A,

FRN,

3.611%,

8/10/49

................

United

States

3,880,000

4,213,921

e

2015-3BP,

A,

144A,

3.178%,

2/10/35

.....................

United

States

600,000

649,213

e,o

DBCG

Mortgage

Trust

,

2017-BBG

,

A

,

144A,

FRN

,

0.826

%

,

(

1-month

USD

LIBOR

+

0.7

%

),

6/15/34

...........................

United

States

1,500,000

1,502,521

e,p

Eleven

Madison

Mortgage

Trust

,

2015-11MD

,

A

,

144A,

FRN

,

3.555

%

,

9/10/35

.....................................

United

States

2,005,000

2,219,737

e,p

J.P.

Morgan

Chase

Commercial

Mortgage

Securities

Trust

,

2016-

NINE

,

A

,

144A,

FRN

,

2.854

%

,

9/06/38

....................

United

States

600,000

652,442

e

Morgan

Stanley

Capital

I

Trust

,

2014-150E

,

A

,

144A,

3.912

%

,

9/09/32

...........................................

United

States

450,000

491,541

48,754,155

a

a

a

a

a

a

Thrifts

&

Mortgage

Finance

0.5%

Banc

of

America

Commercial

Mortgage

Trust

,

2015-UBS7

,

A4

,

3.705

%

,

9/15/48

.....................................

United

States

100,000

111,903

FHLMC

,

4402

,

PE

,

3.5

%

,

3/15/43

.........................

United

States

664,068

680,347

GS

Mortgage

Securities

Trust

,

2016-GS3,

A4,

2.85%,

10/10/49

.........................

United

States

600,000

653,915

2017-GS6,

A3,

3.433%,

5/10/50

.........................

United

States

2,000,000

2,255,485

JPMBB

Commercial

Mortgage

Securities

Trust

,

2015-C30,

A5,

3.822%,

7/15/48

.........................

United

States

1,500,000

1,691,060

2016-C1,

A5,

3.576%,

3/15/49

..........................

United

States

1,500,000

1,692,980

Wells

Fargo

Commercial

Mortgage

Trust

,

2016-NXS6

,

A2

,

2.399

%

,

11/15/49

..........................................

United

States

6,534,000

6,583,149

13,668,839

a

a

a

a

a

a

Total

Commercial

Mortgage-Backed

Securities

(Cost

$60,265,784)

................

62,422,994

Mortgage-Backed

Securities

2.8%

q

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Adjustable

Rate

0.1%

FHLMC,

2.61%

-

3.539%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

10/01/36

-

6/01/37

...................................

United

States

1,037,386

1,086,915

1,086,915

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Fixed

Rate

0.0%

†

FHLMC

Gold

Pools,

15

Year,

5%,

10/01/23

..................

United

States

35,543

37,285

FHLMC

Gold

Pools,

15

Year,

6%,

6/01/23

...................

United

States

5,233

5,429

FHLMC

Gold

Pools,

30

Year,

5%,

1/01/39

...................

United

States

78,384

91,101

133,815

q

Federal

National

Mortgage

Association

(FNMA)

Adjustable

Rate

0.3%

FNMA,

1.225%

-

5.624%,

(1-month

USD

LIBOR

+/-

MBS

Margin),

5/01/21

-

10/01/44

...................................

United

States

9,219,384

9,512,317

9,512,317

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

2.4%

FNMA,

15

Year,

3.5%,

10/01/25

...........................

United

States

405,219

431,991

FNMA,

15

Year,

4%,

12/01/25

............................

United

States

609,180

648,548

FNMA,

15

Year,

4.5%,

5/01/23

-

6/01/25

....................

United

States

376,422

398,059

FNMA,

30

Year,

5%,

3/01/38

.............................

United

States

10,968

12,506

r

FNMA,

Single-family,

15

Year,

1.5%,

2/25/36

.................

United

States

6,090,000

6,245,105

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

47

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Mortgage-Backed

Securities

(continued)

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

(continued)

r

FNMA,

Single-family,

15

Year,

2%,

2/25/36

..................

United

States

53,862,000

$

56,279,477

64,015,686

q

Government

National

Mortgage

Association

(GNMA)

Adjustable

Rate

0.0%

†

GNMA

II,

2.25%

-

2.875%,

(1-year

CMT

T-Note

+/-

MBS

Margin),

4/20/26

-

9/20/26

....................................

United

States

10,973

11,178

11,178

Total

Mortgage-Backed

Securities

(Cost

$74,608,422)

............................

74,759,911

Municipal

Bonds

3.3%

California

1.0%

San

Jose

Redevelopment

Agency

Successor

Agency

,

Tax

Allocation,

Senior

Lien,

2017A-T,

Refunding,

2.48%,

8/01/21

United

States

1,595,000

1,613,263

Tax

Allocation,

Senior

Lien,

2017A-T,

Refunding,

2.63%,

8/01/22

United

States

5,320,000

5,507,423

Tax

Allocation,

Senior

Lien,

2017A-T,

Refunding,

3.226%,

8/01/27

United

States

190,000

215,682

State

of

California,

GO,

2.375%,

10/01/26

...................

United

States

18,195,000

19,910,061

27,246,429

Colorado

0.0%

†

Board

of

Governors

of

Colorado

State

University

System,

Revenue,

2015E-2,

5%,

3/01/25

................................

United

States

100,000

118,614

Florida

0.0%

†

Citizens

Property

Insurance,

Inc.,

Revenue,

2015A-1,

5%,

6/01/22

United

States

125,000

130,009

Hawaii

0.1%

City

&

County

Honolulu,

Wastewater

System,

Revenue,

2019

B,

Refunding,

2.233%,

7/01/24

............................

United

States

2,470,000

2,608,839

Illinois

0.1%

State

of

Illinois,

GO,

2003,

5.1%,

6/01/33

...................

United

States

2,415,000

2,704,583

Massachusetts

0.1%

Massachusetts

State

College

Building

Authority,

Revenue,

2019

C,

Refunding,

2.256%,

5/01/26

............................

United

States

2,635,000

2,786,486

New

Jersey

0.1%

State

of

New

Jersey,

GO,

2020

A,

3%,

6/01/32

...............

United

States

1,430,000

1,650,106

New

York

1.5%

Metropolitan

Transportation

Authority

,

Revenue,

2019

D-1,

5%,

9/01/22

........................

United

States

9,690,000

10,303,086

Revenue,

2020

E,

Refunding,

4%,

11/15/45

................

United

States

1,865,000

2,144,899

New

York

State

Urban

Development

Corp.,

State

of

New

York

Sales

Tax,

Revenue,

2019

B,

Refunding,

2.25%,

3/15/26

...........

United

States

8,750,000

9,261,438

State

of

New

York,

GO,

2019B,

Refunding,

2.12%,

2/15/25

......

United

States

18,195,000

19,384,407

41,093,830

Ohio

0.0%

†

City

of

Cincinnati,

GO,

2015A,

Refunding,

5%,

12/01/25

........

United

States

100,000

120,330

Teays

Valley

Local

School

District,

GO,

2015,

Refunding,

4%,

12/01/26

..........................................

United

States

100,000

109,697

230,027

Oregon

0.1%

State

of

Oregon,

Department

of

Transportation,

Revenue,

Senior

Lien,

2019

B,

Refunding,

2.18%,

11/15/25

.................

United

States

3,640,000

3,923,374

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

48

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Municipal

Bonds

(continued)

Texas

0.3%

State

of

Texas,

GO,

2016

A,

5%,

4/01/21

....................

United

States

2,690,000

$

2,711,735

Texas

State

University

System,

Revenue,

2019

B,

Refunding,

2.351%,

3/15/26

.....................................

United

States

4,825,000

5,143,643

7,855,378

Total

Municipal

Bonds

(Cost

$84,599,991)

......................................

90,347,675

Residential

Mortgage-Backed

Securities

10.1%

Capital

Markets

0.0%

†

o

Merrill

Lynch

Mortgage

Investors

Trust

,

2003-A,

1A,

FRN,

0.87%,

(1-month

USD

LIBOR

+

0.74%),

3/25/28

United

States

138,578

136,544

2003-E,

A1,

FRN,

0.75%,

(1-month

USD

LIBOR

+

0.62%),

10/25/28

..........................................

United

States

325,613

328,021

464,565

a

a

a

a

a

a

Diversified

Financial

Services

0.7%

o

American

Home

Mortgage

Investment

Trust

,

2005-1

,

6A

,

FRN

,

2.264

%

,

(

6-month

USD

LIBOR

+

2

%

),

6/25/45

..............

United

States

494,661

507,212

e,p

BRAVO

Residential

Funding

Trust

,

2019-2

,

A3

,

144A,

FRN

,

3.5

%

,

10/25/44

..........................................

United

States

7,138,132

7,495,772

p

CHL

Mortgage

Pass-Through

Trust

,

2004-11

,

2A1

,

FRN

,

2.63

%

,

7/25/34

...........................................

United

States

980,515

1,001,883

e,p

CIM

Trust

,

2019-INV1

,

A1

,

144A,

FRN

,

4

%

,

2/25/49

...........

United

States

628,191

648,336

Credit

Suisse

First

Boston

Mortgage

Securities

Corp.

,

2004-6

,

3A1

,

5

%

,

9/25/19

........................................

United

States

158,075

133,906

e,p

CSMC

Trust

,

2014-IVR3

,

A1

,

144A,

FRN

,

3.5

%

,

7/25/44

........

United

States

873,007

897,851

e,p

Flagstar

Mortgage

Trust

,

2018-6RR

,

1A3

,

144A,

FRN

,

4

%

,

10/25/48

United

States

1,597,963

1,605,900

p

GSR

Mortgage

Loan

Trust

,

2005-AR1

,

1A1

,

FRN

,

2.636

%

,

1/25/35

United

States

154,583

151,346

p

J.P.

Morgan

Mortgage

Trust

,

2004-A1

,

5A1

,

FRN

,

2.414

%

,

2/25/34

United

States

29,250

30,844

MASTR

Alternative

Loan

Trust

,

2003-1

,

3A1

,

5

%

,

2/25/18

.......

United

States

12,926

13,249

e,o

OBX

Trust

,

2018-1

,

A2

,

144A,

FRN

,

0.78

%

,

(

1-month

USD

LIBOR

+

0.65

%

),

6/25/57

.....................................

United

States

1,677,546

1,680,123

e,p

Sequoia

Mortgage

Trust

,

2016-2

,

A4

,

144A,

FRN

,

3.5

%

,

8/25/46

..

United

States

3,715,032

3,733,741

o

Thornburg

Mortgage

Securities

Trust

,

2004-3

,

A

,

FRN

,

0.87

%

,

(

1-month

USD

LIBOR

+

0.74

%

),

9/25/34

..................

United

States

443,836

445,428

e,p

Wells

Fargo

Mortgage

Backed

Securities

Trust

,

2018-1

,

A3

,

144A,

FRN

,

3.5

%

,

7/25/47

..................................

United

States

1,618,195

1,628,905

19,974,496

a

a

a

a

a

a

Thrifts

&

Mortgage

Finance

9.4%

o

FHLMC

Structured

Agency

Credit

Risk

Debt

Notes

,

2013-DN2,

M2,

FRN,

4.38%,

(1-month

USD

LIBOR

+

4.25%),

11/25/23

..........................................

United

States

6,338,371

6,400,000

2014-DN2,

M3,

FRN,

3.73%,

(1-month

USD

LIBOR

+

3.6%),

4/25/24

...........................................

United

States

8,664,712

8,675,993

2014-DN3,

M3,

FRN,

4.13%,

(1-month

USD

LIBOR

+

4%),

8/25/24

United

States

2,126,023

2,182,683

2014-DN4,

M3,

FRN,

4.68%,

(1-month

USD

LIBOR

+

4.55%),

10/25/24

..........................................

United

States

4,445,073

4,575,337

2014-HQ1,

M3,

FRN,

4.23%,

(1-month

USD

LIBOR

+

4.1%),

8/25/24

...........................................

United

States

4,208,377

4,269,127

2014-HQ2,

M3,

FRN,

3.88%,

(1-month

USD

LIBOR

+

3.75%),

9/25/24

...........................................

United

States

13,608,551

14,075,885

2014-HQ3,

M3,

FRN,

4.88%,

(1-month

USD

LIBOR

+

4.75%),

10/25/24

..........................................

United

States

1,209,194

1,230,074

2015-DN1,

M3,

FRN,

4.28%,

(1-month

USD

LIBOR

+

4.15%),

1/25/25

...........................................

United

States

2,322,988

2,343,996

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

49

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Residential

Mortgage-Backed

Securities

(continued)

Thrifts

&

Mortgage

Finance

(continued)

o

FHLMC

Structured

Agency

Credit

Risk

Debt

Notes,

(continued)

2015-DNA1,

M3,

FRN,

3.43%,

(1-month

USD

LIBOR

+

3.3%),

10/25/27

..........................................

United

States

5,355,398

$

5,498,551

2015-DNA2,

M3,

FRN,

4.03%,

(1-month

USD

LIBOR

+

3.9%),

12/25/27

..........................................

United

States

10,525,005

10,690,844

2015-DNA3,

M3,

FRN,

4.83%,

(1-month

USD

LIBOR

+

4.7%),

4/25/28

...........................................

United

States

8,801,519

9,203,004

2015-HQ2,

M3,

FRN,

3.38%,

(1-month

USD

LIBOR

+

3.25%),

5/25/25

...........................................

United

States

7,403,883

7,568,562

2015-HQA1,

M3,

FRN,

4.83%,

(1-month

USD

LIBOR

+

4.7%),

3/25/28

...........................................

United

States

13,479,446

13,999,321

2015-HQA2,

M3,

FRN,

4.93%,

(1-month

USD

LIBOR

+

4.8%),

5/25/28

...........................................

United

States

1,565,451

1,636,675

2016-DNA1,

M3,

FRN,

5.68%,

(1-month

USD

LIBOR

+

5.55%),

7/25/28

...........................................

United

States

11,219,533

11,813,713

2016-DNA2,

M3,

FRN,

4.78%,

(1-month

USD

LIBOR

+

4.65%),

10/25/28

..........................................

United

States

12,536,958

13,146,663

2016-HQA2,

M3,

FRN,

5.28%,

(1-month

USD

LIBOR

+

5.15%),

11/25/28

..........................................

United

States

9,972,358

10,398,713

2016-HQA3,

M2,

FRN,

1.48%,

(1-month

USD

LIBOR

+

1.35%),

3/25/29

...........................................

United

States

166,672

167,005

2017-HQA3,

M2,

FRN,

2.48%,

(1-month

USD

LIBOR

+

2.35%),

4/25/30

...........................................

United

States

181,861

185,210

o

FNMA

Connecticut

Avenue

Securities

,

2013-C01,

M2,

FRN,

5.38%,

(1-month

USD

LIBOR

+

5.25%),

10/25/23

..........................................

United

States

8,809,957

9,136,453

2014-C01,

M2,

FRN,

4.53%,

(1-month

USD

LIBOR

+

4.4%),

1/25/24

...........................................

United

States

2,176,053

2,234,948

2014-C02,

1M2,

FRN,

2.73%,

(1-month

USD

LIBOR

+

2.6%),

5/25/24

...........................................

United

States

8,869,305

8,764,587

2014-C02,

2M2,

FRN,

2.73%,

(1-month

USD

LIBOR

+

2.6%),

5/25/24

...........................................

United

States

2,211,293

2,242,702

2014-C03,

1M2,

FRN,

3.13%,

(1-month

USD

LIBOR

+

3%),

7/25/24

...........................................

United

States

9,050,559

8,960,878

2014-C03,

2M2,

FRN,

3.03%,

(1-month

USD

LIBOR

+

2.9%),

7/25/24

...........................................

United

States

11,839,389

12,013,324

2014-C04,

1M2,

FRN,

5.03%,

(1-month

USD

LIBOR

+

4.9%),

11/25/24

..........................................

United

States

8,987,022

9,293,538

2014-C04,

2M2,

FRN,

5.13%,

(1-month

USD

LIBOR

+

5%),

11/25/24

..........................................

United

States

2,761,308

2,827,259

2015-C01,

1M2,

FRN,

4.43%,

(1-month

USD

LIBOR

+

4.3%),

2/25/25

...........................................

United

States

6,628,359

6,803,598

2015-C01,

2M2,

FRN,

4.68%,

(1-month

USD

LIBOR

+

4.55%),

2/25/25

...........................................

United

States

1,712,830

1,733,220

2015-C02,

1M2,

FRN,

4.13%,

(1-month

USD

LIBOR

+

4%),

5/25/25

...........................................

United

States

7,464,539

7,657,497

2015-C02,

2M2,

FRN,

4.13%,

(1-month

USD

LIBOR

+

4%),

5/25/25

...........................................

United

States

2,813,974

2,869,668

2015-C03,

1M2,

FRN,

5.13%,

(1-month

USD

LIBOR

+

5%),

7/25/25

...........................................

United

States

7,459,880

7,680,389

2015-C03,

2M2,

FRN,

5.13%,

(1-month

USD

LIBOR

+

5%),

7/25/25

...........................................

United

States

2,885,817

2,953,258

2016-C01,

1M2,

FRN,

6.88%,

(1-month

USD

LIBOR

+

6.75%),

8/25/28

...........................................

United

States

1,330,548

1,417,444

2016-C01,

2M2,

FRN,

7.08%,

(1-month

USD

LIBOR

+

6.95%),

8/25/28

...........................................

United

States

4,119,222

4,389,010

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

50

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Residential

Mortgage-Backed

Securities

(continued)

Thrifts

&

Mortgage

Finance

(continued)

o

FNMA

Connecticut

Avenue

Securities,

(continued)

2016-C02,

1M2,

FRN,

6.13%,

(1-month

USD

LIBOR

+

6%),

9/25/28

...........................................

United

States

116,070

$

122,526

2016-C04,

1M2,

FRN,

4.38%,

(1-month

USD

LIBOR

+

4.25%),

1/25/29

...........................................

United

States

11,341,323

11,849,731

2016-C05,

2M2,

FRN,

4.58%,

(1-month

USD

LIBOR

+

4.45%),

1/25/29

...........................................

United

States

8,751,888

9,118,127

2016-C06,

1M2,

FRN,

4.38%,

(1-month

USD

LIBOR

+

4.25%),

4/25/29

...........................................

United

States

3,501,399

3,652,201

2016-C07,

2M2,

FRN,

4.48%,

(1-month

USD

LIBOR

+

4.35%),

5/25/29

...........................................

United

States

7,513,460

7,857,762

2017-C03,

1M2,

FRN,

3.13%,

(1-month

USD

LIBOR

+

3%),

10/25/29

..........................................

United

States

2,520,571

2,580,835

o

New

York

Mortgage

Trust

,

2005-3

,

M1

,

FRN

,

0.805

%

,

(

1-month

USD

LIBOR

+

0.675

%

),

2/25/36

.............................

United

States

134,347

128,675

254,348,986

a

a

a

a

a

a

Total

Residential

Mortgage-Backed

Securities

(Cost

$295,142,611)

................

274,788,047

Shares/Units

Escrows

and

Litigation

Trusts

0.0%

†

a,b

Millennium

Corporate

Claim

Trust,

Escrow

Account

............

United

States

477,205

—

a,b

Millennium

Lender

Claim

Trust,

Escrow

Account

..............

United

States

477,205

—

a,b

Remington

Outdoor

Co.,

Inc.,

Litigation

Units

.................

United

States

16,078

—

b

Sanchez

Energy

Corp.,

Escrow

Account

....................

United

States

1,900,000

19,000

Total

Escrows

and

Litigation

Trusts

(Cost

$1,838,967)

...........................

19,000

Total

Long

Term

Investments

(Cost

$2,507,093,047)

.............................

2,522,546,604

a

Short

Term

Investments

9.7%

a

a

Principal

Amount

*

a

Value

a

a

a

a

a

a

Repurchase

Agreements

1.7%

s

Joint

Repurchase

Agreement,

0.04%,

2/01/21

(Maturity

Value

$46,998,246)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$27,787,713)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$8,095,448)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$11,115,085)

Collateralized

by

U.S.

Government

Agency

Securities,

3.5%

-

5%,

11/20/41

-

2/20/50;

U.S.

Treasury

Bonds,

6.25%

-

7.63%,

11/15/22

-

8/15/23;

and

U.S.

Treasury

Note,

1.63%,

11/15/22

(valued

at

$47,951,165)

.......................................

46,998,089

46,998,089

Total

Repurchase

Agreements

(Cost

$46,998,089)

...............................

46,998,089

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

51

Short

Term

Investments

(continued)

a

a

Country

Shares

a

Value

a

Money

Market

Funds

8.0%

d,t

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

........

United

States

216,907,284

$

216,907,284

Total

Money

Market

Funds

(Cost

$216,907,284)

.................................

216,907,284

Total

Short

Term

Investments

(Cost

$263,905,373

)

...............................

263,905,373

a

Total

Investments

(Cost

$2,770,998,420)

102.6%

................................

$2,786,451,977

Other

Assets,

less

Liabilities

(2.6)%

...........................................

(70,873,527)

Net

Assets

100.0%

...........................................................

$2,715,578,450

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Fair

valued

using

significant

unobservable

inputs.

See

Note

11

regarding

fair

value

measurements.

b

Non-income

producing.

c

See

Note

6

regarding

restricted

securities.

d

See

Note

9

regarding

investments

in

affiliated

management

investment

companies.

e

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

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.

Regulation

S

securities

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.

At

January

31,

2021,

the

aggregate

value

of

these

securities

was

$781,699,149,

representing

28.8%

of

net

assets.

f

Income

may

be

received

in

additional

securities

and/or

cash.

g

The

coupon

rate

shown

represents

the

rate

at

period

end.

h

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

i

A

portion

or

all

of

the

security

represents

an

unsettled

loan

commitment.

The

coupon

rate

is

to-be

determined

(TBD)

at

the

time

of

the

settlement

and

will

be

based

upon

a

reference

index/floor

plus

a

spread.

j

Defaulted

security

or

security

for

which

income

has

been

deemed

uncollectible.

k

See

Note

7

regarding

unfunded

loan

commitments.

l

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

m

Perpetual

security

with

no

stated

maturity

date.

n

Principal

amount

of

security

is

adjusted

for

inflation.

o

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

p

Adjustable

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.

q

Adjustable

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).

r

Security

purchased

on

a

to-be-announced

(TBA)

basis.

s

Investment

is

through

participation

in

a

joint

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager.

At

January

31,

2021,

all

repurchase

agreements

had

been

entered

into

on

January

29,

2021.

t

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

52

At

January

31,

2021,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

3. 

At

January

31,

2021,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

3

. 

At

January

31,

2021,

the

Fund

had

the

following credit

default

swap

contracts outstanding.

See

Note

3

. 

Futures

Contracts

Description

Type

Number

of

Contracts

Notional

Amount

*

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Interest

rate

contracts

Australia

3

Year

Bonds

........................

Long

433

$

38,854,679

3/15/21

$

25,636

Canada

10

Year

Bonds

........................

Long

331

38,209,830

3/22/21

(283,832)

U.S.

Treasury

10

Year

Notes

....................

Short

2,111

289,272,969

3/22/21

1,947,558

U.S.

Treasury

2

Year

Notes

.....................

Long

4,148

916,610,779

3/31/21

750,748

U.S.

Treasury

5

Year

Notes

.....................

Short

113

14,223,875

3/31/21

4,009

Total

Futures

Contracts

......................................................................

$2,444,119

*

As

of

period

end.

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

Japanese

Yen

......

JPHQ

Sell

1,417,954,000

18,100,000

SGD

2/04/21

$

85,920

$

—

Singapore

Dollar

....

JPHQ

Sell

18,100,000

1,392,252,000

JPY

2/04/21

—

(331,301)

Brazilian

Real

......

JPHQ

Sell

2,520,623

446,958

2/08/21

—

(13,693)

Brazilian

Real

......

JPHQ

Sell

4,945,000

920,440

3/01/21

17,164

—

Japanese

Yen

......

JPHQ

Buy

1,428,685,650

13,514,327

3/08/21

129,381

—

Japanese

Yen

......

JPHQ

Sell

1,428,685,650

13,784,481

3/08/21

140,773

—

South

Korean

Won

..

JPHQ

Buy

3,920,000,000

3,584,164

3/10/21

—

(78,723)

South

Korean

Won

..

JPHQ

Sell

3,920,000,000

3,309,637

3/10/21

—

(195,804)

Turkish

Lira

........

JPHQ

Buy

12,510,000

1,518,757

4/06/21

147,242

—

Indonesian

Rupiah

..

JPHQ

Buy

47,801,500,000

3,321,394

6/02/21

43,927

—

Australian

Dollar

....

JPHQ

Buy

14,620,000

11,366,173

6/17/21

—

(185,711)

Australian

Dollar

....

JPHQ

Sell

14,620,000

11,035,103

6/17/21

—

(145,359)

Euro

.............

JPHQ

Buy

13,415,000

16,496,009

6/22/21

—

(166,296)

Japanese

Yen

......

JPHQ

Buy

1,400,000,000

13,513,970

7/07/21

—

(124,969)

Canadian

Dollar

....

JPHQ

Sell

11,330,000

8,870,204

7/08/21

5,980

—

Australian

Dollar

....

JPHQ

Buy

3,490,000

2,687,911

7/28/21

—

(18,444)

Singapore

Dollar

....

JPHQ

Buy

3,600,000

2,710,843

7/28/21

—

(1,187)

South

Korean

Won

..

JPHQ

Buy

3,000,000,000

2,713,213

7/28/21

—

(29,392)

Total

Forward

Exchange

Contracts

...................................................

$570,387

$(1,290,879)

Net

unrealized

appreciation

(depreciation)

............................................

$(720,492)

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

53

Credit

Default

Swap

Contracts

Description

Periodic

Payment

Rate

Received

(Paid)

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

(a)

Value

Unamortized

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Rating

(b)

Centrally

Cleared

Swap

Contracts

Contracts

to

Sell

Protection

(c)(d)

Traded

Index

ITRAXX.EUROPE.

CROSSOVER.34-V2

5.00%

Quarterly

12/20/25

$

11,100,000

$

1,452,109

$

1,432,701

$

19,408

Investment

Grade

ITRAXX.EUROPE.

MAIN.34-V1

.....

1.00%

Quarterly

12/20/25

11,100,000

331,830

322,793

9,037

Investment

Grade

Total

Centrally

Cleared

Swap

Contracts

.....................................

$1,783,939

$1,755,494

$28,445

OTC

Swap

Contracts

Contracts

to

Buy

Protection

(c)

Single

Name

Ally

Financial,

Inc.

...

(5.00)%

Quarterly

JPHQ

12/20/24

13,600,000

(2,336,654)

(1,973,742)

(362,912)

Avon

Products,

Inc.

..

(5.00)%

Quarterly

CITI

3/20/23

5,835,000

(434,967)

(361,634)

(73,333)

HCA,

Inc.

.........

(5.00)%

Quarterly

FBCO

3/20/22

2,050,000

(117,828)

(84,728)

(33,100)

Lumen

Technologies,

Inc.

...........

(5.00)%

Quarterly

BZWS

6/20/21

4,700,000

(109,491)

(42,469)

(67,022)

Nabors

Industries,

Inc.

(1.00)%

Quarterly

CITI

12/20/21

6,200,000

365,811

79,662

286,149

Contracts

to

Sell

Protection

(c)(d)

Single

Name

Air

France-KLM

.....

5.00%

Quarterly

MSCO

12/20/25

1,320,000

(100,360)

1,545

(101,905)

NR

American

Airlines

Group,

Inc.

......

5.00%

Quarterly

CITI

12/20/21

1,600,000

(51,110)

(94,656)

43,546

CCC

Carnival

Corp.

......

1.00%

Quarterly

CITI

12/20/25

1,600,000

(295,760)

(244,326)

(51,434)

B

Goldman

Sachs

Group,

Inc.

(The)

.......

1.00%

Quarterly

JPHQ

12/20/24

13,600,000

294,807

181,898

112,909

BBB+

Macy's

Retail

Holdings

LLC

...........

1.00%

Quarterly

JPHQ

12/20/25

1,600,000

(275,600)

(291,023)

15,423

B

Morgan

Stanley

.....

1.00%

Quarterly

JPHQ

12/20/24

13,600,000

317,865

199,643

118,222

BBB+

Nabors

Industries,

Inc.

1.00%

Quarterly

CITI

12/20/23

6,200,000

(1,878,023)

(534,910)

(1,343,113)

CCC-

Royal

Caribbean

Cruises

Ltd.

......

5.00%

Quarterly

BZWS

12/20/25

1,600,000

(102,462)

(46,538)

(55,924)

B+

United

Airlines

Holdings,

Inc.

...........

5.00%

Quarterly

FBCO

12/20/25

776,000

(31,297)

(1,709)

(29,588)

B

Traded

Index

(e)

Citibank

Bespoke

Palma

Index,

Mezzanine

Tranche

5-7%

..........

2.30%

Quarterly

CITI

6/20/21

4,910,000

35,719

—

35,719

Non-

Investment

Grade

(e)

Citibank

Bespoke

Phoenix

Index,

Mezzanine

Tranche

5-7%

..........

2.90%

Quarterly

CITI

12/20/21

3,500,000

23,935

—

23,935

Non-

Investment

Grade

MCDX.NA.30

......

1.00%

Quarterly

CITI

6/20/28

2,000,000

33,776

14,892

18,884

Investment

Grade

MCDX.NA.MAIN.31

..

1.00%

Quarterly

CITI

12/20/23

12,200,000

74,718

72,486

2,232

Investment

Grade

(e)

Morgan

Stanley

Bespoke

Pecan

Index,

Mezzanine

Tranche

5-10%

...

4.10%

Quarterly

MSCO

12/20/21

3,700,000

(159,230)

—

(159,230)

Non-

Investment

Grade

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

54

*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.

The

table below

summarizes

the

cash

and/or

securities

held

as

collateral

for

each

applicable

counterparty

at

period

end.

At

January

31,

2021,

the

Fund

had

the

following cross-currency

swap

contracts outstanding.

See

Note

3. 

Credit

Default

Swap

Contracts

(continued)

Description

Periodic

Payment

Rate

Received

(Paid)

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

(a)

Value

Unamortized

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Rating

(b)

OTC

Swap

Contracts

(continued)

Contracts

to

Sell

Protection

(c)(d)

(continued)

Traded

Index

(continued)

(e)

Morgan

Stanley

Bespoke

Pecan

Index,

Mezzanine

Tranche

5-10%

...

3.98%

Quarterly

MSCO

12/20/21

$

3,700,000

$

(163,589)

$

—

$

(163,589)

Non-

Investment

Grade

Total

OTC

Swap

Contracts

..............................................

$(4,909,740)

$(3,125,609)

$(1,784,131)

Total

Credit

Default

Swap

Contracts

....................................

$(3,125,801)

$

(1,370,115)

$(1,755,686)

Counterparty

Collateral

Pledged

(Received)

BZWS

$260,000

CITI

12,470,000

FBCO

130,000

JPHQ

2,720,000

MSCO

1,130,000

Total

collateral

$16,710,000

(a)

In

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.

(b)

Based

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.

(c)

Performance

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.

(d)

The

fund

enters

contracts

to

sell

protection

to

create

a

long

credit

position.

(e)

Represents

a

custom

index

comprised

of

a

basket

of

underlying

instruments.

Cross-Currency

Swap

Contracts

Description

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

Value/

Unrealized

Appreciation

(Depreciation)

aA

aaa

aaa

aaa

OTC

Swap

Contracts

Receive

Floating

3-month

USD

LIBOR

+

1.85%

.....

Quarterly

617,500

USD

Pay

Fixed

1.5%

.............................

Annual

CITI

5/04/21

500,000

EUR

$

6,726

Receive

Floating

3-month

USD

LIBOR

+

1.894%

.....

Quarterly

2,460,000

USD

Pay

Fixed

1.5%

.............................

Annual

CITI

5/04/21

2,000,000

EUR

17,345

Receive

Floating

3-month

USD

LIBOR

+

1.303%

.....

Quarterly

496,000

USD

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Low

Duration

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

55

At

January

31,

2021,

the

Fund

had

the

following inflation index

swap

contracts outstanding.

See

Note

3

. 

See

A

bbreviations

on

page

117

.

Cross-Currency

Swap

Contracts

(continued)

Description

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

Value/

Unrealized

Appreciation

(Depreciation)

aA

aaa

aaa

aaa

OTC

Swap

Contracts

(continued)

Pay

Fixed

1%

..............................

Annual

JPHQ

5/04/21

400,000

EUR

$

8,469

Receive

Floating

3-month

USD

LIBOR

+

1.175%

.....

Quarterly

25,083,500

USD

Pay

Floating

3-month

EURIBOR

+

1.05%

.........

Quarterly

CITI

11/22/21

22,700,000

EUR

(2,440,611)

Receive

Floating

3-month

USD

LIBOR

+

1.175%

.....

Quarterly

4,862,000

USD

Pay

Floating

3-month

EURIBOR

+

1.05%

.........

Quarterly

CITI

11/22/21

4,400,000

EUR

(473,069)

Receive

Floating

3-month

USD

LIBOR

+

1.174%

.....

Quarterly

30,525,000

USD

Pay

Floating

3-month

EURIBOR

+

1.05%

.........

Quarterly

CITI

12/10/21

27,500,000

EUR

(2,830,911)

Receive

Floating

3-month

USD

LIBOR

+

1.318%

.....

Quarterly

13,930,500

USD

Pay

Floating

3-month

EURIBOR

+

1.2%

..........

Quarterly

CITI

12/12/21

12,550,000

EUR

(1,296,790)

Receive

Floating

3-month

USD

LIBOR

+

0.849%

.....

Quarterly

3,472,000

USD

Pay

Fixed

0.75%

............................

Annual

DBAB

9/14/22

2,800,000

EUR

38,470

Total

Cross

Currency

Swap

Contracts

...........................................................

$(6,970,371)

Inflation

Index

Swap

Contracts

Description

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

Value

Unamortized

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Centrally

Cleared

Swap

Contracts

Receive

variable

change

  in

USA

CPI-U

........

At

Maturity

Pay

Fixed

2.079%

.....

At

Maturity

9/18/24

$

1,770,000

$

(1,462)

$

—

$

(1,462)

Receive

variable

change

  in

USA

CPI-U

........

At

Maturity

Pay

Fixed

1.893%

.....

At

Maturity

1/15/27

50,500,000

976,913

—

976,913

Receive

variable

change

  in

USA

CPI-U

........

At

Maturity

Pay

Fixed

2.313%

.....

At

Maturity

6/01/28

1,400,000

(28,961)

—

(28,961)

Total

Inflation

Index

Swap

Contracts

..................................

$946,490

$—

$946,490

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited),

January

31,

2021

Franklin

Managed

Income

Fund

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

56

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

38.4%

Aerospace

&

Defense

1.1%

General

Dynamics

Corp.

................................

United

States

200,000

$

29,336,000

Northrop

Grumman

Corp.

...............................

United

States

42,900

12,295,569

41,631,569

Air

Freight

&

Logistics

0.7%

United

Parcel

Service,

Inc.,

B

............................

United

States

175,000

27,125,000

Banks

7.7%

Bank

of

America

Corp.

.................................

United

States

2,998,888

88,917,029

Citigroup,

Inc.

........................................

United

States

350,000

20,296,500

JPMorgan

Chase

&

Co.

.................................

United

States

700,000

90,069,000

Truist

Financial

Corp.

..................................

United

States

1,200,000

57,576,000

US

Bancorp

.........................................

United

States

800,000

34,280,000

291,138,529

Beverages

1.8%

Coca-Cola

Co.

(The)

...................................

United

States

650,200

31,307,130

PepsiCo,

Inc.

........................................

United

States

270,000

36,873,900

68,181,030

Biotechnology

0.7%

AbbVie,

Inc.

.........................................

United

States

250,000

25,620,000

Capital

Markets

1.3%

Morgan

Stanley

.......................................

United

States

735,000

49,281,750

Chemicals

0.7%

Air

Products

and

Chemicals,

Inc.

..........................

United

States

100,000

26,676,000

Diversified

Telecommunication

Services

2.5%

BCE,

Inc.

...........................................

Canada

450,000

19,088,136

Deutsche

Telekom

AG

..................................

Germany

1,200,000

21,338,200

Verizon

Communications,

Inc.

............................

United

States

1,000,000

54,750,000

95,176,336

Electric

Utilities

1.2%

Duke

Energy

Corp.

....................................

United

States

175,000

16,450,000

FirstEnergy

Corp.

.....................................

United

States

1,000,000

30,760,000

47,210,000

Food

Products

0.7%

Nestle

SA

...........................................

Switzerland

250,000

28,227,500

Health

Care

Providers

&

Services

2.4%

CVS

Health

Corp.

.....................................

United

States

520,000

37,258,000

Quest

Diagnostics,

Inc.

.................................

United

States

400,000

51,660,000

88,918,000

Household

Products

1.5%

Procter

&

Gamble

Co.

(The)

.............................

United

States

450,000

57,694,500

Industrial

Conglomerates

1.6%

Honeywell

International,

Inc.

.............................

United

States

300,000

58,611,000

Insurance

0.4%

Travelers

Cos.,

Inc.

(The)

...............................

United

States

100,000

13,630,000

IT

Services

0.6%

International

Business

Machines

Corp.

.....................

United

States

200,000

23,822,000

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Managed

Income

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

57

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Multiline

Retail

0.5%

Target

Corp.

.........................................

United

States

100,000

$

18,117,000

Multi-Utilities

3.6%

Dominion

Energy,

Inc.

..................................

United

States

500,000

36,445,000

DTE

Energy

Co.

......................................

United

States

200,000

23,744,000

Sempra

Energy

.......................................

United

States

599,450

74,187,932

134,376,932

Oil,

Gas

&

Consumable

Fuels

4.3%

BP

plc,

ADR

.........................................

United

Kingdom

500,000

11,110,000

Chevron

Corp.

.......................................

United

States

750,000

63,900,000

Exxon

Mobil

Corp.

.....................................

United

States

1,250,000

56,050,000

Royal

Dutch

Shell

plc,

ADR,

A

............................

Netherlands

350,000

12,911,500

TOTAL

SE,

ADR

......................................

France

400,000

16,832,000

160,803,500

Pharmaceuticals

3.5%

AstraZeneca

plc,

ADR

..................................

United

Kingdom

550,000

27,830,000

Bristol-Myers

Squibb

Co.

................................

United

States

600,000

36,858,000

Eli

Lilly

and

Co.

.......................................

United

States

125,000

25,996,250

Johnson

&

Johnson

...................................

United

States

250,000

40,782,500

131,466,750

Road

&

Rail

1.1%

Union

Pacific

Corp.

....................................

United

States

205,000

40,481,350

Specialty

Retail

0.5%

Home

Depot,

Inc.

(The)

.................................

United

States

75,000

20,311,500

Total

Common

Stocks

(Cost

$1,245,552,691)

....................................

1,448,500,246

Management

Investment

Companies

2.6%

Capital

Markets

2.6%

a,b

Franklin

FTSE

United

Kingdom

ETF

.......................

United

States

1,500,000

33,390,000

b

Franklin

Liberty

Systematic

Style

Premia

ETF

................

United

States

1,175,000

23,276,985

b

Franklin

Liberty

U.S.

Low

Volatility

ETF

.....................

United

States

1,000,000

41,080,000

97,746,985

Total

Management

Investment

Companies

(Cost

$100,268,312)

...................

97,746,985

Equity-Linked

Securities

16.1%

Aerospace

&

Defense

1.5%

c

Societe

Generale

SA

into

Raytheon

Technologies

Corp.,

144A,

8%,

6/01/21

...........................................

United

States

832,000

54,795,006

Capital

Markets

1.7%

c

Credit

Suisse

AG

into

Charles

Schwab

Corp.

(The),

144A,

6.5%,

5/18/21

...........................................

United

States

1,007,000

47,629,649

c

UBS

AG

into

Morgan

Stanley,

144A,

8.5%,

2/11/22

............

United

States

220,000

14,998,427

62,628,076

Communications

Equipment

1.3%

c

Royal

Bank

of

Canada

into

Cisco

Systems,

Inc.,

144A,

7.5%,

8/04/21

United

States

1,077,000

48,270,474

Energy

Equipment

&

Services

0.4%

c

Societe

Generale

SA

into

Schlumberger

Ltd.,

144A,

9%,

2/01/21

..

United

States

715,000

16,208,469

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Managed

Income

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

58

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Equity-Linked

Securities

(continued)

IT

Services

0.7%

c

Barclays

Bank

plc

into

Fidelity

National

Information

Services,

Inc.,

144A,

7.5%,

6/02/21

.................................

United

States

222,000

$

27,763,221

Media

0.9%

c

Merrill

Lynch

International

&

Co.

CV

into

Comcast

Corp.,

144A,

7%,

8/09/21

...........................................

United

States

744,000

33,647,242

Multiline

Retail

0.8%

c

Societe

Generale

SA

into

Target

Corp.,

144A,

8%,

12/20/21

......

United

States

168,000

29,733,993

Pharmaceuticals

1.4%

c

Credit

Suisse

AG

into

Pfizer,

Inc.,

144A,

8%,

8/27/21

...........

United

States

1,493,000

53,776,984

Semiconductors

&

Semiconductor

Equipment

5.2%

c

Barclays

Bank

plc

into

Intel

Corp.,

144A,

8%,

8/16/21

..........

United

States

1,054,000

58,745,638

c

BNP

Paribas

Issuance

BV

into

Texas

Instruments,

Inc.,

144A,

8.5%,

6/01/21

...........................................

United

States

715,000

99,785,818

c

Royal

Bank

of

Canada

into

Analog

Devices,

Inc.,

144A,

8%,

2/01/22

United

States

246,000

37,098,790

195,630,246

Software

0.7%

c

Merrill

Lynch

International

&

Co.

CV

into

Oracle

Corp.,

144A,

8%,

11/08/21

..........................................

United

States

470,000

28,059,411

Technology

Hardware,

Storage

&

Peripherals

0.6%

c

BNP

Paribas

Issuance

BV

into

Apple,

Inc.,

144A,

10%,

12/22/21

..

United

States

164,000

20,712,572

Trading

Companies

&

Distributors

0.9%

c

JPMorgan

Chase

Bank

NA

into

Fastenal

Co.,

144A,

7.5%,

12/03/21

United

States

770,000

35,360,953

Total

Equity-Linked

Securities

(Cost

$598,127,704)

..............................

606,586,647

Convertible

Preferred

Stocks

10.6%

Capital

Markets

0.3%

KKR

&

Co.,

Inc.,

6%,

C

.................................

United

States

200,000

11,634,000

Chemicals

0.6%

International

Flavors

&

Fragrances,

Inc.,

6%

.................

United

States

500,000

21,005,000

Electric

Utilities

4.1%

American

Electric

Power

Co.,

Inc.,

6.125%

..................

United

States

700,000

33,404,000

NextEra

Energy,

Inc.,

5.279%

............................

United

States

1,200,000

64,128,000

Southern

Co.

(The),

6.75%,

2019

.........................

United

States

1,150,000

56,580,000

154,112,000

Health

Care

Equipment

&

Supplies

1.8%

Boston

Scientific

Corp.,

5.5%,

A

..........................

United

States

250,000

27,315,000

Danaher

Corp.,

5%,

B

..................................

United

States

30,000

41,148,000

68,463,000

Health

Care

Technology

0.5%

Change

Healthcare,

Inc.,

6%

.............................

United

States

250,000

20,205,000

Multi-Utilities

2.1%

Dominion

Energy,

Inc.,

7.25%,

A

..........................

United

States

450,000

44,415,000

DTE

Energy

Co.,

6.25%

................................

United

States

750,000

34,785,000

79,200,000

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Managed

Income

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

59

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Convertible

Preferred

Stocks

(continued)

Semiconductors

&

Semiconductor

Equipment

1.2%

Broadcom,

Inc.,

8%,

A

..................................

United

States

32,000

$

47,000,000

Total

Convertible

Preferred

Stocks

(Cost

$349,420,426)

..........................

401,619,000

Preferred

Stocks

0.2%

Banks

0.2%

JPMorgan

Chase

&

Co.,

6%,

EE

..........................

United

States

214,983

5,884,085

Total

Preferred

Stocks

(Cost

$5,374,575)

.......................................

5,884,085

Principal

Amount

*

Corporate

Bonds

24.2%

Automobiles

0.3%

General

Motors

Co.

,

Senior

Note

,

5.4

%

,

10/02/23

.............

United

States

10,000,000

11,191,521

Banks

1.8%

Bank

of

America

Corp.

,

Senior

Bond,

3.419%

to

12/20/27,

FRN

thereafter,

12/20/28

...

United

States

15,000,000

16,820,414

L,

Sub.

Bond,

4.183%,

11/25/27

........................

United

States

10,000,000

11,469,122

Barclays

plc

,

Senior

Bond

,

3.65

%

,

3/16/25

..................

United

Kingdom

15,000,000

16,469,281

Citigroup,

Inc.

,

Sub.

Bond

,

4.125

%

,

7/25/28

..................

United

States

20,000,000

22,963,738

67,722,555

Beverages

0.3%

Anheuser-Busch

Cos.

LLC

/

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond

,

4.9

%

,

2/01/46

............................

Belgium

10,000,000

12,567,990

Capital

Markets

0.9%

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Bond

,

3.5

%

,

11/16/26

..

United

States

15,000,000

16,702,982

Morgan

Stanley

,

Sub.

Bond

,

4.35

%

,

9/08/26

.................

United

States

15,000,000

17,473,370

34,176,352

Chemicals

0.6%

DuPont

de

Nemours,

Inc.

,

Senior

Note

,

4.493

%

,

11/15/25

.......

United

States

20,000,000

23,245,196

Communications

Equipment

0.4%

c

CommScope

Technologies

LLC

,

Senior

Bond

,

144A,

5

%

,

3/15/27

.

United

States

15,000,000

14,896,875

Consumer

Finance

1.3%

Capital

One

Financial

Corp.

,

Senior

Bond,

3.75%,

3/09/27

...........................

United

States

10,000,000

11,409,163

Sub.

Bond,

3.75%,

7/28/26

............................

United

States

10,000,000

11,205,312

Ford

Motor

Credit

Co.

LLC

,

Senior

Bond

,

5.113

%

,

5/03/29

.......

United

States

25,000,000

27,547,188

50,161,663

Diversified

Telecommunication

Services

0.4%

c

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond

,

144A,

5.125

%

,

5/01/27

................................

United

States

15,000,000

15,791,925

Electric

Utilities

0.9%

Duke

Energy

Corp.

,

Senior

Bond

,

3.15

%

,

8/15/27

.............

United

States

10,000,000

11,135,653

c

Vistra

Operations

Co.

LLC

,

Senior

Secured

Bond

,

144A,

4.3

%

,

7/15/29

...........................................

United

States

20,000,000

23,020,402

34,156,055

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Managed

Income

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

60

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Equity

Real

Estate

Investment

Trusts

(REITs)

0.9%

American

Tower

Corp.

,

Senior

Bond

,

3.375

%

,

10/15/26

.........

United

States

15,000,000

$

16,714,832

Realty

Income

Corp.

,

Senior

Bond

,

3.875

%

,

7/15/24

...........

United

States

15,000,000

16,653,662

33,368,494

Food

&

Staples

Retailing

0.6%

Walmart,

Inc.

,

Senior

Bond

,

3.25

%

,

7/08/29

..................

United

States

20,000,000

22,913,428

Health

Care

Equipment

&

Supplies

0.3%

Edwards

Lifesciences

Corp.

,

Senior

Bond

,

4.3

%

,

6/15/28

.......

United

States

9,700,000

11,352,088

Health

Care

Providers

&

Services

5.4%

Anthem,

Inc.

,

Senior

Bond

,

3.65

%

,

12/01/27

.................

United

States

10,000,000

11,517,119

Centene

Corp.

,

Senior

Note

,

4.625

%

,

12/15/29

...............

United

States

20,000,000

22,200,000

c

CHS/Community

Health

Systems,

Inc.

,

Secured

Note,

144A,

11%,

6/30/23

......................

United

States

4,000,000

4,299,200

Secured

Note,

144A,

8.125%,

6/30/24

....................

United

States

6,000,000

6,315,000

Secured

Note,

144A,

6.875%,

4/15/29

....................

United

States

20,000,000

20,262,500

Senior

Secured

Note,

144A,

6.625%,

2/15/25

..............

United

States

25,000,000

26,364,375

Senior

Secured

Note,

144A,

8%,

3/15/26

..................

United

States

25,000,000

26,900,000

Cigna

Corp.

,

Senior

Note,

3.75%,

7/15/23

...........................

United

States

13,292,000

14,342,431

Senior

Note,

3.4%,

3/01/27

............................

United

States

15,000,000

16,900,006

CVS

Health

Corp.

,

Senior

Bond,

3.875%,

7/20/25

..........................

United

States

15,000,000

16,871,196

Senior

Bond,

5.05%,

3/25/48

...........................

United

States

15,000,000

19,670,375

Tenet

Healthcare

Corp.

,

Senior

Secured

Note

,

4.625

%

,

7/15/24

...

United

States

17,000,000

17,319,600

202,961,802

Hotels,

Restaurants

&

Leisure

0.8%

Las

Vegas

Sands

Corp.

,

Senior

Bond

,

3.9

%

,

8/08/29

...........

United

States

10,000,000

10,504,084

c

Vail

Resorts,

Inc.

,

Senior

Note

,

144A,

6.25

%

,

5/15/25

..........

United

States

10,000,000

10,637,500

c

Wynn

Las

Vegas

LLC

/

Wynn

Las

Vegas

Capital

Corp.

,

Senior

Bond

,

144A,

5.5

%

,

3/01/25

.................................

United

States

10,000,000

10,315,200

31,456,784

Household

Products

0.2%

Clorox

Co.

(The)

,

Senior

Bond

,

3.1

%

,

10/01/27

...............

United

States

5,000,000

5,642,005

Insurance

0.5%

c

Liberty

Mutual

Group,

Inc.

,

Senior

Note

,

144A,

4.95

%

,

5/01/22

...

United

States

7,100,000

7,493,245

Prudential

Financial,

Inc.

,

Junior

Sub.

Bond

,

3.7%

to

10/01/30,

FRN

thereafter

,

10/01/50

..................................

United

States

10,000,000

10,487,500

17,980,745

IT

Services

0.6%

Fiserv,

Inc.

,

Senior

Bond

,

4.2

%

,

10/01/28

...................

United

States

20,000,000

23,626,596

Machinery

0.2%

CNH

Industrial

NV

,

Senior

Bond

,

3.85

%

,

11/15/27

.............

United

Kingdom

7,500,000

8,609,809

Media

0.3%

DISH

DBS

Corp.

,

Senior

Note

,

5.875

%

,

7/15/22

..............

United

States

12,000,000

12,492,000

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Managed

Income

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

61

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Metals

&

Mining

0.6%

c

Cleveland-Cliffs,

Inc.

,

Senior

Secured

Note

,

144A,

9.875

%

,

10/17/25

United

States

10,000,000

$

11,771,300

Freeport-McMoRan,

Inc.

,

Senior

Bond

,

5.25

%

,

9/01/29

.........

United

States

10,000,000

11,166,900

22,938,200

Multiline

Retail

0.3%

Dollar

General

Corp.

,

Senior

Bond

,

3.875

%

,

4/15/27

...........

United

States

10,000,000

11,542,947

Oil,

Gas

&

Consumable

Fuels

0.7%

c

Calumet

Specialty

Products

Partners

LP

/

Calumet

Finance

Corp.

,

Senior

Note

,

144A,

11

%

,

4/15/25

........................

United

States

15,000,000

14,887,350

Occidental

Petroleum

Corp.

,

Senior

Note

,

6.375

%

,

9/01/28

......

United

States

10,000,000

10,918,750

25,806,100

Pharmaceuticals

1.9%

c

Bausch

Health

Cos.,

Inc.

,

Senior

Note,

144A,

5%,

2/15/29

........................

United

States

10,000,000

10,255,300

Senior

Secured

Note,

144A,

5.5%,

11/01/25

...............

United

States

10,000,000

10,307,000

c

Bayer

US

Finance

II

LLC

,

Senior

Note

,

144A,

4.25

%

,

12/15/25

...

Germany

15,000,000

17,144,124

Bristol-Myers

Squibb

Co.

,

Senior

Note

,

3.4

%

,

7/26/29

..........

United

States

10,000,000

11,445,681

Mylan,

Inc.

,

Senior

Note

,

4.55

%

,

4/15/28

....................

United

States

19,000,000

22,537,366

71,689,471

Road

&

Rail

0.6%

c

Ashtead

Capital,

Inc.

,

Senior

Note

,

144A,

4.125

%

,

8/15/25

......

United

Kingdom

21,000,000

21,656,250

Semiconductors

&

Semiconductor

Equipment

0.6%

Microchip

Technology,

Inc.

,

Senior

Secured

Note

,

4.333

%

,

6/01/23

United

States

15,000,000

16,196,877

Xilinx,

Inc.

,

Senior

Note

,

2.95

%

,

6/01/24

....................

United

States

6,000,000

6,441,433

22,638,310

Textiles,

Apparel

&

Luxury

Goods

0.6%

NIKE,

Inc.

,

Senior

Bond

,

2.375

%

,

11/01/26

..................

United

States

20,000,000

21,711,601

Tobacco

0.9%

BAT

Capital

Corp.

,

Senior

Note

,

3.557

%

,

8/15/27

.............

United

Kingdom

15,000,000

16,679,403

Reynolds

American,

Inc.

,

Senior

Bond

,

4.45

%

,

6/12/25

.........

United

Kingdom

15,000,000

16,984,884

33,664,287

Wireless

Telecommunication

Services

1.3%

Sprint

Corp.

,

Senior

Note

,

7.625

%

,

2/15/25

..................

United

States

10,000,000

11,962,500

c

Sprint

Spectrum

Co.

LLC

/

Sprint

Spectrum

Co.

II

LLC

/

Sprint

Spectrum

Co.

III

LLC

,

Senior

Secured

Note

,

144A,

4.738

%

,

9/20/29

...........................................

United

States

7,500,000

8,163,938

c

T-Mobile

USA,

Inc.

,

Senior

Secured

Bond

,

144A,

3.875

%

,

4/15/30

.

United

States

25,000,000

28,260,500

48,386,938

Total

Corporate

Bonds

(Cost

$813,815,610)

.....................................

914,347,987

U.S.

Government

and

Agency

Securities

2.8%

U.S.

Treasury

Notes

,

2.75%,

9/15/21

.....................................

United

States

50,000,000

50,831,254

2.875%,

10/31/23

....................................

United

States

50,000,000

53,725,586

Total

U.S.

Government

and

Agency

Securities

(Cost

$99,911,213)

.................

104,556,840

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Managed

Income

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

62

See

Abbreviations

on

page

117

.

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Asset-Backed

Securities

0.6%

Airlines

0.6%

United

Airlines

Pass-Through

Trust

,

2020-1,

A,

5.875%,

10/15/27

...........................

United

States

9,758,250

$

10,926,281

2020-1,

B,

4.875%,

7/15/27

............................

United

States

12,000,000

12,360,672

23,286,953

a

a

a

a

a

a

Total

Asset-Backed

Securities

(Cost

$21,758,250)

...............................

23,286,953

Mortgage-Backed

Securities

2.0%

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

0.3%

FNMA,

30

Year,

3%,

8/01/50

.............................

United

States

7,107,631

7,485,025

FNMA,

30

Year,

4%,

8/01/49

.............................

United

States

2,278,145

2,506,059

9,991,084

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

1.7%

GNMA

II,

Single-family,

30

Year,

3%,

7/20/50

.................

United

States

30,780,591

32,368,491

GNMA

II,

Single-family,

30

Year,

3%,

1/20/51

.................

United

States

31,440,608

33,479,516

65,848,007

Total

Mortgage-Backed

Securities

(Cost

$76,112,600)

............................

75,839,091

Total

Long

Term

Investments

(Cost

$3,310,341,381)

.............................

3,678,367,834

a

Short

Term

Investments

3.2%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

3.2%

b,d

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

........

United

States

118,711,954

118,711,954

Total

Money

Market

Funds

(Cost

$118,711,954)

.................................

118,711,954

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.0%

†

a

a

a

a

a

Money

Market

Funds

0.0%

†

b,d

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

........

United

States

648,000

648,000

Principal

Amount

*

Repurchase

Agreements

0.0%

†

e

Joint

Repurchase

Agreement,

J.P.

Morgan

Securities

LLC,

0.04%,

2/01/21

(Maturity

Value

$162,804)

Collateralized

by

U.S.

Treasury

Notes,

2%

-

2.5%,

8/31/21

-

1/31/24

(valued

at

$166,059)

...........................

162,803

162,803

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$810,803)

.............................................................

810,803

Total

Short

Term

Investments

(Cost

$119,522,757

)

...............................

119,522,757

a

Total

Investments

(Cost

$3,429,864,138)

100.7%

................................

$3,797,890,591

Other

Assets,

less

Liabilities

(0.7)%

...........................................

(26,706,306)

Net

Assets

100.0%

...........................................................

$3,771,184,285

Franklin

Investors

Securities

Trust

Statement

of

Investments

(unaudited)

Franklin

Managed

Income

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

63

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

A

portion

or

all

of

the

security

is

on

loan

at

January

31,

2021.

b

See

Note

9

regarding

investments

in

affiliated

management

investment

companies.

c

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

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.

Regulation

S

securities

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.

At

January

31,

2021,

the

aggregate

value

of

these

securities

was

$895,328,631,

representing

23.7%

of

net

assets.

d

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

e

Investment

is

through

participation

in

a

joint

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager.

At

January

31,

2021,

all

repurchase

agreements

had

been

entered

into

on

January

29,

2021.

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited),

January

31,

2021

Franklin

Total

Return

Fund

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

64

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

0.0%

Aerospace

&

Defense

0.0%

a,b,c

Remington

Outdoor

Co.,

Inc.

.............................

United

States

52,019

$

—

Energy

Equipment

&

Services

0.0%

†

b

Weatherford

International

plc

.............................

United

States

34,108

231,934

Hotels,

Restaurants

&

Leisure

0.0%

†

b

24

Hour

Fitness

Worldwide,

Inc.

..........................

United

States

37,368

84,078

Machinery

0.0%

†

b

UTEX

Industries,

Inc.

..................................

United

States

3,098

105,332

Multiline

Retail

0.0%

a,b,c

K2016470219

South

Africa

Ltd.,

A

.........................

South

Africa

28,762,824

—

a,b,c

K2016470219

South

Africa

Ltd.,

B

.........................

South

Africa

2,862,311

—

—

Oil,

Gas

&

Consumable

Fuels

0.0%

†

a,b

Riviera

Resources,

Inc.

.................................

United

States

12,605

3,256

Paper

&

Forest

Products

0.0%

†

a,b,c

Appvion

Operations,

Inc.

................................

United

States

13,033

218,566

Verso

Corp.,

A

........................................

United

States

6,954

79,971

298,537

Road

&

Rail

0.0%

†

a,b

Onsite

Rental

Group

Operations

Pty.

Ltd.

...................

Australia

100,554

2,003

Specialty

Retail

0.0%

†

b

Party

City

Holdings,

Inc.

................................

United

States

112,955

812,149

Total

Common

Stocks

(Cost

$2,119,580)

.......................................

1,537,289

Management

Investment

Companies

12.7%

Capital

Markets

12.7%

d

Franklin

Floating

Rate

Income

Fund

.......................

United

States

1,549,310

11,805,744

d

Franklin

Liberty

High

Yield

Corporate

ETF

...................

United

States

5,830,000

153,270,700

d

Franklin

Liberty

Investment

Grade

Corporate

ETF

.............

United

States

18,335,000

488,008,027

d

Franklin

Liberty

Senior

Loan

ETF

.........................

United

States

914,900

22,744,414

675,828,885

Total

Management

Investment

Companies

(Cost

$648,335,900)

...................

675,828,885

Preferred

Stocks

0.1%

Banks

0.1%

Citigroup

Capital

XIII,

6.572%

............................

United

States

93,000

2,610,510

Hotels,

Restaurants

&

Leisure

0.0%

†

b

24

Hour

Fitness

Worldwide,

Inc.

..........................

United

States

88,500

228,330

b

Total

Preferred

Stocks

(Cost

$2,444,431)

.......................................

2,838,840

Warrants

Warrants

0.0%

†

Machinery

0.0%

†

a,b

UTEX

Industries,

Inc.,

2/20/49

............................

United

States

94

168

Oil,

Gas

&

Consumable

Fuels

0.0%

†

a,b

Battalion

Oil

Corp.,

A,

10/08/22

...........................

United

States

2,551

33

a,b

Battalion

Oil

Corp.,

B,

10/08/22

...........................

United

States

3,189

17

a,b

Battalion

Oil

Corp.,

C,

10/08/22

...........................

United

States

4,100

7

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

65

a

a

Country

Warrants

a

Value

a

a

a

a

a

a

Warrants

(continued)

Oil,

Gas

&

Consumable

Fuels

(continued)

57

Paper

&

Forest

Products

0.0%

†

b

Verso

Corp.,

7/25/23

...................................

United

States

732

$

878

Total

Warrants

(Cost

$—)

.....................................................

1,103

Principal

Amount

*

Corporate

Bonds

26.1%

Aerospace

&

Defense

0.3%

e

Bombardier,

Inc.

,

Senior

Bond

,

144A,

7.5

%

,

3/15/25

...........

Canada

7,800,000

7,312,500

Lockheed

Martin

Corp.

,

Senior

Bond,

3.55%,

1/15/26

...........................

United

States

3,300,000

3,732,549

Senior

Bond,

4.07%,

12/15/42

..........................

United

States

1,700,000

2,126,655

Northrop

Grumman

Corp.

,

Senior

Bond

,

5.25

%

,

5/01/50

........

United

States

3,500,000

5,007,351

18,179,055

Air

Freight

&

Logistics

0.7%

FedEx

Corp.

,

Senior

Bond,

4.05%,

2/15/48

...........................

United

States

2,000,000

2,276,478

Senior

Note,

3.8%,

5/15/25

............................

United

States

19,900,000

22,352,621

United

Parcel

Service,

Inc.

,

Senior

Bond

,

5.3

%

,

4/01/50

........

United

States

10,000,000

14,509,888

39,138,987

Airlines

0.4%

Delta

Air

Lines,

Inc.

,

Senior

Note

,

2.9

%

,

10/28/24

.............

United

States

7,800,000

7,668,882

e

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.

,

Senior

Secured

Note

,

144A,

4.5

%

,

10/20/25

.....................................

United

States

10,500,000

11,224,242

United

Airlines

Holdings,

Inc.

,

Senior

Note

,

5

%

,

2/01/24

.........

United

States

4,000,000

3,953,700

22,846,824

Auto

Components

0.1%

e

Adient

US

LLC

,

Senior

Secured

Note

,

144A,

7

%

,

5/15/26

.......

United

States

3,000,000

3,269,700

e

Allison

Transmission,

Inc.

,

Senior

Bond

,

144A,

5.875

%

,

6/01/29

..

United

States

2,500,000

2,759,088

6,028,788

Banks

2.6%

e

Akbank

T.A.S.

,

Senior

Bond

,

144A,

5.125

%

,

3/31/25

...........

Turkey

5,600,000

5,724,790

Banco

Santander

SA

,

Sub.

Bond

,

2.749

%

,

12/03/30

...........

Spain

3,600,000

3,628,508

Bank

of

America

Corp.

,

Senior

Bond,

2.592%

to

4/29/30,

FRN

thereafter,

4/29/31

.....

United

States

6,700,000

7,035,310

Sub.

Bond,

6.11%,

1/29/37

............................

United

States

2,800,000

3,963,779

e

BDO

Unibank

,

Inc.

,

Senior

Note

,

Reg

S,

2.95

%

,

3/06/23

........

Philippines

1,600,000

1,665,920

e

BNP

Paribas

SA

,

Senior

Note

,

144A,

2.219%

to

6/09/25,

FRN

thereafter

,

6/09/26

...................................

France

5,900,000

6,172,119

Capital

One

Bank

USA

NA

,

Sub.

Bond

,

3.375

%

,

2/15/23

........

United

States

4,000,000

4,225,931

Citigroup,

Inc.

,

Senior

Bond,

2.572%

to

6/03/30,

FRN

thereafter,

6/03/31

.....

United

States

10,500,000

10,948,474

Senior

Bond,

4.65%,

7/23/48

...........................

United

States

3,700,000

4,893,598

f

Comerica,

Inc.

,

Junior

Sub.

Bond

,

5.625%

to

10/01/25,

FRN

thereafter

,

Perpetual

.................................

United

States

3,800,000

4,189,500

HSBC

Holdings

plc

,

Senior

Bond,

2.848%

to

6/04/30,

FRN

thereafter,

6/04/31

.....

United

Kingdom

10,600,000

11,212,653

Senior

Bond,

2.357%

to

8/18/30,

FRN

thereafter,

8/18/31

.....

United

Kingdom

3,800,000

3,866,697

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

66

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Banks

(continued)

HSBC

Holdings

plc,

(continued)

Senior

Note,

2.013%

to

9/22/27,

FRN

thereafter,

9/22/28

......

United

Kingdom

12,400,000

$

12,657,424

JPMorgan

Chase

&

Co.

,

Senior

Bond,

4.493%

to

3/24/30,

FRN

thereafter,

3/24/31

.....

United

States

32,100,000

38,654,356

Sub.

Bond,

4.95%,

6/01/45

............................

United

States

1,600,000

2,188,387

Lloyds

Banking

Group

plc

,

Senior

Note

,

3.87%

to

7/09/24,

FRN

thereafter

,

7/09/25

...................................

United

Kingdom

2,500,000

2,749,264

SVB

Financial

Group

,

Senior

Bond,

3.5%,

1/29/25

............................

United

States

6,000,000

6,522,344

Senior

Bond,

3.125%,

6/05/30

..........................

United

States

3,600,000

4,004,416

Toronto-Dominion

Bank

(The)

,

Senior

Note

,

3.25

%

,

3/11/24

......

Canada

1,900,000

2,063,583

136,367,053

Beverages

0.5%

Anheuser-Busch

Cos.

LLC

/

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond,

4.7%,

2/01/36

............................

Belgium

1,800,000

2,225,715

Senior

Bond,

4.9%,

2/01/46

............................

Belgium

3,400,000

4,273,117

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond

,

3.5

%

,

6/01/30

Belgium

18,400,000

21,010,379

27,509,211

Biotechnology

0.7%

AbbVie,

Inc.

,

Senior

Bond,

4.25%,

11/14/28

..........................

United

States

1,800,000

2,133,051

Senior

Bond,

4.7%,

5/14/45

............................

United

States

3,200,000

4,037,855

Senior

Note,

3.8%,

3/15/25

............................

United

States

1,900,000

2,112,411

Senior

Note,

3.2%,

11/21/29

...........................

United

States

18,000,000

19,929,807

Amgen,

Inc.

,

Senior

Note

,

2.2

%

,

2/21/27

....................

United

States

5,600,000

5,936,129

Regeneron

Pharmaceuticals,

Inc.

,

Senior

Bond

,

1.75

%

,

9/15/30

..

United

States

1,400,000

1,365,434

35,514,687

Capital

Markets

0.5%

Credit

Suisse

Group

AG

,

Senior

Bond

,

4.875

%

,

5/15/45

........

Switzerland

3,100,000

4,179,338

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Bond,

3.75%,

2/25/26

...........................

United

States

6,300,000

7,106,802

Senior

Bond,

2.6%,

2/07/30

............................

United

States

10,000,000

10,584,408

Senior

Bond,

6.25%,

2/01/41

...........................

United

States

2,800,000

4,254,326

Morgan

Stanley

,

Senior

Note

,

2.188%

to

4/28/25,

FRN

thereafter

,

4/28/26

...........................................

United

States

2,200,000

2,312,247

28,437,121

Chemicals

0.3%

e

Braskem

Netherlands

Finance

BV

,

Senior

Bond

,

144A,

4.5

%

,

1/31/30

...........................................

Brazil

11,800,000

12,009,332

Westlake

Chemical

Corp.

,

Senior

Bond

,

3.375

%

,

6/15/30

.......

United

States

3,500,000

3,830,762

e

Yara

International

ASA

,

Senior

Bond

,

144A,

3.148

%

,

6/04/30

.....

Brazil

1,700,000

1,826,466

17,666,560

Commercial

Services

&

Supplies

0.1%

e

Harsco

Corp.

,

Senior

Note

,

144A,

5.75

%

,

7/31/27

.............

United

States

2,500,000

2,595,313

Communications

Equipment

0.1%

e

CommScope

Technologies

LLC

,

Senior

Bond

,

144A,

5

%

,

3/15/27

.

United

States

3,000,000

2,979,375

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

67

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Consumer

Finance

0.5%

Capital

One

Financial

Corp.

,

Senior

Bond,

3.75%,

3/09/27

...........................

United

States

2,000,000

$

2,281,832

Senior

Bond,

3.8%,

1/31/28

............................

United

States

3,700,000

4,220,112

Senior

Note,

3.65%,

5/11/27

...........................

United

States

12,900,000

14,638,399

OneMain

Finance

Corp.

,

Senior

Bond

,

5.375

%

,

11/15/29

........

United

States

3,000,000

3,307,500

24,447,843

Containers

&

Packaging

0.7%

Amcor

Finance

USA,

Inc.

,

Senior

Note

,

3.625

%

,

4/28/26

........

United

States

11,800,000

13,326,020

Bemis

Co.,

Inc.

,

Senior

Bond

,

2.63

%

,

6/19/30

................

United

States

2,800,000

2,976,385

e

CCL

Industries,

Inc.

,

Senior

Bond

,

144A,

3.05

%

,

6/01/30

........

Canada

6,600,000

7,109,223

e

Mauser

Packaging

Solutions

Holding

Co.

,

Senior

Note

,

144A,

7.25

%

,

4/15/25

...........................................

United

States

3,000,000

2,972,250

e

Plastipak

Holdings,

Inc.

,

Senior

Note

,

144A,

6.25

%

,

10/15/25

....

United

States

3,000,000

3,073,125

e

Reynolds

Group

Issuer,

Inc.

/

Reynolds

Group

Issuer

LLC

/

Reynolds

Group

Issuer

Luxembourg

SA

,

Senior

Secured

Note

,

144A,

4

%

,

10/15/27

..........................................

United

States

2,300,000

2,316,560

WRKCo

,

Inc.

,

Senior

Bond

,

3

%

,

6/15/33

....................

United

States

4,700,000

5,127,889

36,901,452

Diversified

Financial

Services

0.2%

e

EDP

Finance

BV

,

Senior

Note

,

144A,

1.71

%

,

1/24/28

..........

Portugal

10,500,000

10,455,150

Shell

International

Finance

BV

,

Senior

Bond

,

4.55

%

,

8/12/43

.....

Netherlands

1,700,000

2,164,494

12,619,644

Diversified

Telecommunication

Services

0.7%

e

Altice

France

SA

,

Senior

Secured

Note

,

144A,

5.5

%

,

1/15/28

....

France

3,000,000

3,127,500

AT&T,

Inc.

,

Senior

Bond,

3.4%,

5/15/25

............................

United

States

1,900,000

2,099,561

Senior

Bond,

4.3%,

2/15/30

............................

United

States

18,000,000

21,133,351

Senior

Note,

2.3%,

6/01/27

............................

United

States

3,600,000

3,803,709

Bell

Canada,

Inc.

,

Senior

Bond

,

4.464

%

,

4/01/48

..............

Canada

3,600,000

4,567,693

e

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond

,

144A,

5

%

,

2/01/28

...................................

United

States

1,500,000

1,577,250

Orange

SA

,

Senior

Bond

,

8.75

%

,

3/01/31

...................

France

1,300,000

2,128,590

38,437,654

Electric

Utilities

1.8%

Commonwealth

Edison

Co.

,

Senior

Bond

,

6.45

%

,

1/15/38

.......

United

States

700,000

1,062,721

Duke

Energy

Corp.

,

Senior

Bond,

3.15%,

8/15/27

...........................

United

States

15,400,000

17,148,906

Senior

Bond,

3.75%,

9/01/46

...........................

United

States

2,000,000

2,208,691

Duke

Energy

Florida

LLC

,

Senior

Bond

,

6.4

%

,

6/15/38

.........

United

States

1,300,000

1,972,899

Exelon

Corp.

,

Senior

Bond

,

4.05

%

,

4/15/30

..................

United

States

16,900,000

19,784,723

Georgia

Power

Co.

,

Senior

Bond

,

4.3

%

,

3/15/42

..............

United

States

9,000,000

10,983,723

Southern

Co.

(The)

,

Senior

Bond,

3.25%,

7/01/26

...........................

United

States

9,850,000

10,961,379

Senior

Bond,

4.4%,

7/01/46

............................

United

States

2,000,000

2,418,066

A,

Senior

Bond,

3.7%,

4/30/30

.........................

United

States

13,900,000

15,829,473

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

68

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Electric

Utilities

(continued)

e

State

Grid

Overseas

Investment

2016

Ltd.

,

Senior

Bond

,

144A,

3.5

%

,

5/04/27

......................................

China

10,700,000

$

12,018,354

Virginia

Electric

and

Power

Co.

,

Senior

Bond

,

6.35

%

,

11/30/37

...

United

States

520,000

776,555

95,165,490

Electronic

Equipment,

Instruments

&

Components

0.4%

CDW

LLC

/

CDW

Finance

Corp.

,

Senior

Note

,

3.25

%

,

2/15/29

....

United

States

3,000,000

3,021,960

Flex

Ltd.

,

Senior

Bond

,

4.875

%

,

5/12/30

....................

United

States

14,200,000

16,820,712

FLIR

Systems,

Inc.

,

Senior

Note

,

2.5

%

,

8/01/30

...............

United

States

3,000,000

3,148,314

22,990,986

Energy

Equipment

&

Services

0.1%

Baker

Hughes

a

GE

Co.

LLC

/

Baker

Hughes

Co-Obligor,

Inc.

,

Senior

Bond,

4.486%,

5/01/30

..........................

United

States

800,000

951,463

Senior

Bond,

4.08%,

12/15/47

..........................

United

States

1,200,000

1,338,878

g

Valaris

plc

,

Senior

Bond

,

5.75

%

,

10/01/44

...................

Saudi

Arabia

700,000

48,562

e

Weatherford

International

Ltd.

,

Senior

Note

,

144A,

11

%

,

12/01/24

.

United

States

1,032,000

887,520

3,226,423

Entertainment

0.5%

e

Live

Nation

Entertainment,

Inc.

,

Senior

Secured

Note

,

144A,

3.75

%

,

1/15/28

...........................................

United

States

500,000

505,417

e

Netflix,

Inc.

,

Senior

Bond,

144A,

5.375%,

11/15/29

....................

United

States

3,000,000

3,753,750

Senior

Bond,

144A,

4.875%,

6/15/30

.....................

United

States

12,800,000

15,576,000

Walt

Disney

Co.

(The)

,

Senior

Note,

2.2%,

1/13/28

............................

United

States

6,400,000

6,770,580

Senior

Note,

2%,

9/01/29

.............................

United

States

2,000,000

2,054,970

28,660,717

Equity

Real

Estate

Investment

Trusts

(REITs)

0.4%

AvalonBay

Communities,

Inc.

,

Senior

Bond

,

2.45

%

,

1/15/31

.....

United

States

5,900,000

6,270,669

Equinix

,

Inc.

,

Senior

Bond

,

3.2

%

,

11/18/29

..................

United

States

3,500,000

3,791,103

National

Retail

Properties,

Inc.

,

Senior

Bond

,

4.3

%

,

10/15/28

.....

United

States

9,700,000

11,166,974

21,228,746

Food

&

Staples

Retailing

0.2%

e

Cencosud

SA

,

Senior

Bond

,

144A,

4.375

%

,

7/17/27

...........

Chile

9,700,000

10,910,743

Food

Products

0.3%

B&G

Foods,

Inc.

,

Senior

Note

,

5.25

%

,

9/15/27

...............

United

States

3,000,000

3,160,320

Kraft

Heinz

Foods

Co.

,

Senior

Note

,

3

%

,

6/01/26

..............

United

States

3,100,000

3,280,786

e

Post

Holdings,

Inc.

,

Senior

Bond

,

144A,

4.625

%

,

4/15/30

.......

United

States

3,000,000

3,113,160

Unilever

Capital

Corp.

,

Senior

Note

,

2.6

%

,

5/05/24

............

United

Kingdom

4,500,000

4,804,871

14,359,137

Health

Care

Equipment

&

Supplies

0.0%

†

Edwards

Lifesciences

Corp.

,

Senior

Bond

,

4.3

%

,

6/15/28

.......

United

States

1,700,000

1,989,541

Health

Care

Providers

&

Services

1.9%

Anthem,

Inc.

,

Senior

Bond,

4.101%,

3/01/28

..........................

United

States

1,800,000

2,106,024

Senior

Bond,

2.25%,

5/15/30

...........................

United

States

14,500,000

14,951,344

Senior

Bond,

4.65%,

1/15/43

...........................

United

States

3,100,000

3,966,638

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

69

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Health

Care

Providers

&

Services

(continued)

Centene

Corp.

,

Senior

Note

,

4.25

%

,

12/15/27

................

United

States

2,000,000

$

2,120,400

e

CHS/Community

Health

Systems,

Inc.

,

Senior

Secured

Note,

144A,

5.625%,

3/15/27

..............

United

States

800,000

841,000

Senior

Secured

Note,

144A,

6%,

1/15/29

..................

United

States

600,000

638,250

Cigna

Corp.

,

Senior

Bond,

2.4%,

3/15/30

............................

United

States

10,000,000

10,433,601

Senior

Note,

4.125%,

11/15/25

.........................

United

States

5,900,000

6,770,088

Senior

Note,

4.375%,

10/15/28

.........................

United

States

5,000,000

5,948,265

CVS

Health

Corp.

,

Senior

Bond,

4.3%,

3/25/28

............................

United

States

11,618,000

13,656,303

Senior

Bond,

4.78%,

3/25/38

...........................

United

States

3,200,000

3,963,249

Kaiser

Foundation

Hospitals

,

2019

,

Senior

Bond

,

3.266

%

,

11/01/49

United

States

11,270,000

12,646,947

Orlando

Health

Obligated

Group

,

3.777

%

,

10/01/28

............

United

States

2,810,000

3,204,928

Providence

St

Joseph

Health

Obligated

Group

,

H

,

2.746

%

,

10/01/26

United

States

8,875,000

9,661,190

Quest

Diagnostics,

Inc.

,

Senior

Bond

,

2.8

%

,

6/30/31

...........

United

States

11,200,000

12,160,738

103,068,965

Hotels,

Restaurants

&

Leisure

0.5%

e

Caesars

Resort

Collection

LLC

/

CRC

Finco

,

Inc.

,

Senior

Note

,

144A,

5.25

%

,

10/15/25

.....................................

United

States

3,500,000

3,487,470

e

Genting

New

York

LLC

/

GENNY

Capital,

Inc.

,

Senior

Note

,

144A,

3.3

%

,

2/15/26

......................................

United

States

2,100,000

2,114,978

Las

Vegas

Sands

Corp.

,

Senior

Bond

,

3.9

%

,

8/08/29

...........

United

States

8,500,000

8,928,471

e

NCL

Corp.

Ltd.

,

Senior

Note

,

144A,

5.875

%

,

3/15/26

...........

United

States

5,300,000

5,253,651

e

Studio

City

Finance

Ltd.

,

Senior

Note

,

144A,

5

%

,

1/15/29

.......

Macau

3,700,000

3,741,625

e

Wynn

Las

Vegas

LLC

/

Wynn

Las

Vegas

Capital

Corp.

,

Senior

Bond

,

144A,

5.25

%

,

5/15/27

.................................

United

States

3,000,000

3,049,440

e

Wynn

Macau

Ltd.

,

Senior

Note

,

144A,

5.625

%

,

8/26/28

.........

Macau

1,500,000

1,545,488

28,121,123

Household

Durables

0.5%

e

Ashton

Woods

USA

LLC

/

Ashton

Woods

Finance

Co.

,

Senior

Note

,

144A,

6.75

%

,

8/01/25

.................................

United

States

3,000,000

3,138,435

Mohawk

Industries,

Inc.

,

Senior

Bond

,

3.625

%

,

5/15/30

.........

United

States

19,400,000

21,739,180

24,877,615

Independent

Power

and

Renewable

Electricity

Producers

0.3%

e

Calpine

Corp.

,

Senior

Note

,

144A,

5.125

%

,

3/15/28

............

United

States

2,500,000

2,591,038

e

Colbun

SA

,

Senior

Bond

,

144A,

3.15

%

,

3/06/30

...............

Chile

4,400,000

4,730,542

e

InterGen

NV

,

Senior

Secured

Bond

,

144A,

7

%

,

6/30/23

.........

Netherlands

3,300,000

3,196,875

e

Talen

Energy

Supply

LLC

,

Senior

Secured

Note

,

144A,

7.25

%

,

5/15/27

...........................................

United

States

3,000,000

3,177,570

13,696,025

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

70

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Insurance

1.7%

Aflac,

Inc.

,

Senior

Bond

,

3.6

%

,

4/01/30

.....................

United

States

6,000,000

$

6,915,378

Athene

Holding

Ltd.

,

Senior

Bond

,

3.5

%

,

1/15/31

..............

United

States

15,300,000

16,111,597

e

Liberty

Mutual

Group,

Inc.

,

Senior

Bond

,

144A,

4.569

%

,

2/01/29

..

United

States

12,000,000

14,501,811

Marsh

&

McLennan

Cos.,

Inc.

,

Senior

Bond

,

4.375

%

,

3/15/29

....

United

States

4,900,000

5,886,037

e

Metropolitan

Life

Global

Funding

I

,

Senior

Secured

Bond

,

144A,

2.95

%

,

4/09/30

.....................................

United

States

17,700,000

19,658,848

Prudential

plc

,

Senior

Bond

,

3.125

%

,

4/14/30

................

United

Kingdom

18,000,000

20,066,276

Willis

North

America,

Inc.

,

Senior

Bond

,

2.95

%

,

9/15/29

.........

United

States

4,600,000

4,972,646

88,112,593

Interactive

Media

&

Services

0.3%

e

Tencent

Holdings

Ltd.

,

Senior

Bond

,

144A,

2.39

%

,

6/03/30

......

China

15,000,000

15,179,012

Internet

&

Direct

Marketing

Retail

0.4%

Alibaba

Group

Holding

Ltd.

,

Senior

Bond

,

3.4

%

,

12/06/27

.......

China

18,400,000

20,445,728

IT

Services

0.5%

Fiserv,

Inc.

,

Senior

Bond,

3.85%,

6/01/25

...........................

United

States

9,300,000

10,409,019

Senior

Bond,

3.5%,

7/01/29

............................

United

States

1,800,000

2,031,610

Senior

Bond,

2.65%,

6/01/30

...........................

United

States

8,600,000

9,143,702

e

Presidio

Holdings,

Inc.

,

Senior

Note

,

144A,

8.25

%

,

2/01/28

......

United

States

3,000,000

3,343,125

24,927,456

Machinery

0.5%

Caterpillar,

Inc.

,

Senior

Bond,

2.6%,

4/09/30

............................

United

States

17,800,000

19,322,078

Senior

Bond,

3.25%,

4/09/50

...........................

United

States

2,000,000

2,269,546

Westinghouse

Air

Brake

Technologies

Corp.

,

Senior

Note

,

3.2

%

,

6/15/25

...........................................

United

States

2,300,000

2,472,101

24,063,725

Media

1.1%

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

,

Senior

Secured

Bond,

2.8%,

4/01/31

.....................

United

States

18,200,000

18,796,793

Senior

Secured

Note,

4.464%,

7/23/22

...................

United

States

1,900,000

1,996,637

Comcast

Corp.

,

Senior

Bond,

4.25%,

1/15/33

...........................

United

States

10,000,000

12,256,859

Senior

Bond,

4.2%,

8/15/34

............................

United

States

1,700,000

2,064,705

Senior

Bond,

4.049%,

11/01/52

.........................

United

States

2,000,000

2,447,753

e

Diamond

Sports

Group

LLC

/

Diamond

Sports

Finance

Co.

,

Senior

Secured

Note

,

144A,

5.375

%

,

8/15/26

....................

United

States

3,200,000

2,588,000

DISH

DBS

Corp.

,

Senior

Note

,

5.875

%

,

11/15/24

..............

United

States

2,500,000

2,594,338

Fox

Corp.

,

Senior

Bond,

5.476%,

1/25/39

..........................

United

States

3,000,000

4,007,541

Senior

Note,

4.03%,

1/25/24

...........................

United

States

1,900,000

2,091,882

e

Nexstar

Broadcasting,

Inc.

,

Senior

Note

,

144A,

5.625

%

,

7/15/27

..

United

States

2,000,000

2,126,050

Time

Warner

Entertainment

Co.

LP

,

Senior

Secured

Bond

,

8.375

%

,

3/15/23

...........................................

United

States

1,700,000

1,979,120

e

Univision

Communications,

Inc.

,

Senior

Secured

Note

,

144A,

5.125

%

,

2/15/25

.....................................

United

States

3,000,000

3,021,900

55,971,578

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

71

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Metals

&

Mining

0.1%

e

Novelis

Corp.

,

Senior

Bond

,

144A,

4.75

%

,

1/30/30

............

United

States

2,500,000

$

2,629,688

Multiline

Retail

0.3%

Dollar

Tree,

Inc.

,

Senior

Bond,

4.2%,

5/15/28

............................

United

States

11,700,000

13,742,983

Senior

Note,

3.7%,

5/15/23

............................

United

States

1,900,000

2,031,818

a,e,h

K2016470219

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

3

%

,

12/31/22

.......................................

South

Africa

2,383,764

—

a,e,h

K2016470260

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

25

%

,

12/31/22

......................................

South

Africa

771,178

3,856

Target

Corp.

,

Senior

Bond

,

3.375

%

,

4/15/29

.................

United

States

1,800,000

2,070,588

17,849,245

Multi-Utilities

0.4%

Berkshire

Hathaway

Energy

Co.

,

Senior

Bond

,

6.125

%

,

4/01/36

..

United

States

2,700,000

3,888,578

Dominion

Energy,

Inc.

,

Senior

Note,

4.25%,

6/01/28

...........................

United

States

10,000,000

11,917,272

C,

Senior

Note,

3.375%,

4/01/30

........................

United

States

4,351,000

4,865,123

20,670,973

Oil,

Gas

&

Consumable

Fuels

2.2%

e

Aker

BP

ASA

,

Senior

Bond,

144A,

4%,

1/15/31

........................

Norway

10,400,000

11,193,379

Senior

Note,

144A,

4.75%,

6/15/24

......................

Norway

3,400,000

3,504,413

BP

Capital

Markets

America,

Inc.

,

Senior

Bond

,

3.937

%

,

9/21/28

..

United

States

3,400,000

3,950,058

Canadian

Natural

Resources

Ltd.

,

Senior

Bond

,

3.85

%

,

6/01/27

..

Canada

10,000,000

11,269,786

Cheniere

Corpus

Christi

Holdings

LLC

,

Senior

Secured

Note,

7%,

6/30/24

.......................

United

States

4,500,000

5,240,728

Senior

Secured

Note,

5.875%,

3/31/25

...................

United

States

1,600,000

1,855,270

e

Cheniere

Energy,

Inc.

,

Senior

Secured

Note

,

144A,

4.625

%

,

10/15/28

..........................................

United

States

1,700,000

1,780,750

Chevron

Corp.

,

Senior

Bond,

2.355%,

12/05/22

.........................

United

States

4,500,000

4,651,856

Senior

Note,

2.895%,

3/03/24

..........................

United

States

1,900,000

2,030,809

e

Crestwood

Midstream

Partners

LP

/

Crestwood

Midstream

Finance

Corp.

,

Senior

Note

,

144A,

6

%

,

2/01/29

....................

United

States

4,000,000

3,860,840

Enable

Midstream

Partners

LP

,

Senior

Bond,

5.25%,

5/15/44

...........................

United

States

1,200,000

1,162,423

Senior

Note,

4.15%,

5/15/24

...........................

United

States

3,600,000

3,728,344

Energy

Transfer

Operating

LP

,

Senior

Bond,

4.75%,

1/15/26

...........................

United

States

4,500,000

5,076,075

Senior

Bond,

5.15%,

2/01/43

...........................

United

States

6,000,000

6,183,206

EnLink

Midstream

LLC

,

Senior

Bond

,

5.375

%

,

6/01/29

.........

United

States

400,000

382,750

Enterprise

Products

Operating

LLC

,

Senior

Bond

,

3.125

%

,

7/31/29

United

States

2,000,000

2,193,688

EOG

Resources,

Inc.

,

Senior

Bond

,

4.375

%

,

4/15/30

...........

United

States

1,100,000

1,309,913

Exxon

Mobil

Corp.

,

Senior

Bond,

2.61%,

10/15/30

..........................

United

States

6,100,000

6,514,902

Senior

Bond,

3.452%,

4/15/51

..........................

United

States

2,000,000

2,179,297

e

Harvest

Operations

Corp.

,

Senior

Note

,

144A,

4.2

%

,

6/01/23

.....

South

Korea

3,800,000

4,114,610

e

Martin

Midstream

Partners

LP

/

Martin

Midstream

Finance

Corp.

,

Secured

Note,

144A,

10%,

2/29/24

......................

United

States

151,936

158,583

Secured

Note,

144A,

11.5%,

2/28/25

.....................

United

States

689,984

693,434

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

72

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Oil,

Gas

&

Consumable

Fuels

(continued)

MPLX

LP

,

Senior

Bond,

4%,

2/15/25

.............................

United

States

4,600,000

$

5,082,006

Senior

Bond,

4.7%,

4/15/48

............................

United

States

2,000,000

2,250,398

Senior

Note,

4.875%,

6/01/25

..........................

United

States

4,500,000

5,168,376

Occidental

Petroleum

Corp.

,

Senior

Bond

,

6.125

%

,

1/01/31

......

United

States

1,800,000

1,961,460

e

Rattler

Midstream

LP

,

Senior

Note

,

144A,

5.625

%

,

7/15/25

......

United

States

900,000

944,437

Sunoco

Logistics

Partners

Operations

LP

,

Senior

Bond

,

4.25

%

,

4/01/24

...........................................

United

States

3,000,000

3,256,714

e

Sunoco

LP

/

Sunoco

Finance

Corp.

,

Senior

Note

,

144A,

4.5

%

,

5/15/29

...........................................

United

States

1,400,000

1,433,572

Total

Capital

International

SA

,

Senior

Bond

,

3.455

%

,

2/19/29

.....

France

1,800,000

2,041,234

TransCanada

PipeLines

Ltd.

,

Senior

Bond

,

4.25

%

,

5/15/28

......

Canada

3,400,000

3,976,536

e

Tullow

Oil

plc

,

Senior

Note

,

144A,

7

%

,

3/01/25

...............

Ghana

600,000

395,010

Williams

Cos.,

Inc.

(The)

,

Senior

Bond,

3.75%,

6/15/27

...........................

United

States

3,600,000

4,097,691

Senior

Bond,

3.5%,

11/15/30

...........................

United

States

3,200,000

3,535,352

117,177,900

Personal

Products

0.2%

Avon

Products,

Inc.

,

Senior

Bond

,

6.75

%

,

3/15/23

.............

United

Kingdom

8,800,000

9,432,500

Pharmaceuticals

0.2%

Bristol-Myers

Squibb

Co.

,

Senior

Note

,

3.9

%

,

2/20/28

..........

United

States

1,700,000

1,995,162

e

Royalty

Pharma

plc

,

Senior

Note

,

144A,

1.75

%

,

9/02/27

........

United

States

3,400,000

3,473,472

Takeda

Pharmaceutical

Co.

Ltd.

,

Senior

Note

,

2.05

%

,

3/31/30

....

Japan

6,400,000

6,475,252

11,943,886

Real

Estate

Management

&

Development

0.0%

†

e

Five

Point

Operating

Co.

LP

/

Five

Point

Capital

Corp.

,

Senior

Note

,

144A,

7.875

%

,

11/15/25

...............................

United

States

600,000

634,434

Road

&

Rail

0.5%

Burlington

Northern

Santa

Fe

LLC

,

Senior

Bond,

4.9%,

4/01/44

............................

United

States

1,600,000

2,195,797

Senior

Bond,

4.15%,

4/01/45

...........................

United

States

5,100,000

6,349,066

Senior

Bond,

3.9%,

8/01/46

............................

United

States

5,000,000

6,091,361

e

Kazakhstan

Temir

Zholy

Finance

BV

,

Senior

Bond

,

144A,

6.95

%

,

7/10/42

...........................................

Kazakhstan

7,500,000

11,021,100

a,h

Onsite

Rental

Group

Operations

Pty.

Ltd.

,

Secured

Note

,

PIK,

6.1

%

,

10/26/23

..........................................

Australia

183,113

168,124

25,825,448

Semiconductors

&

Semiconductor

Equipment

0.8%

Intel

Corp.

,

Senior

Bond,

3.9%,

3/25/30

............................

United

States

3,100,000

3,678,800

Senior

Note,

3.75%,

3/25/27

...........................

United

States

1,800,000

2,079,106

Maxim

Integrated

Products,

Inc.

,

Senior

Note

,

3.375

%

,

3/15/23

...

United

States

22,000,000

23,151,993

e

SK

Hynix,

Inc.

,

Senior

Bond

,

144A,

2.375

%

,

1/19/31

...........

South

Korea

14,800,000

14,920,129

43,830,028

Software

0.1%

i

Anagram,

Inc.

,

FRN

,

10

%

,

8/15/26

........................

United

States

600,015

606,015

Microsoft

Corp.

,

Senior

Bond

,

3.3

%

,

2/06/27

.................

United

States

5,000,000

5,683,365

6,289,380

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

73

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Specialty

Retail

0.1%

AutoNation,

Inc.

,

Senior

Bond

,

4.75

%

,

6/01/30

...............

United

States

2,400,000

$

2,891,787

Murphy

Oil

USA,

Inc.

,

Senior

Bond

,

4.75

%

,

9/15/29

............

United

States

2,700,000

2,895,926

e,i

Party

City

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

FRN

,

5.318

%

,

7/15/25

...........................................

United

States

1,110,015

1,054,514

6,842,227

Thrifts

&

Mortgage

Finance

0.1%

e

BPCE

SA

,

Sub.

Bond

,

144A,

4.5

%

,

3/15/25

..................

France

4,500,000

5,053,632

Tobacco

0.5%

Altria

Group,

Inc.

,

Senior

Bond

,

3.4

%

,

5/06/30

................

United

States

15,100,000

16,606,717

Reynolds

American,

Inc.

,

Senior

Bond,

5.7%,

8/15/35

............................

United

Kingdom

9,300,000

11,660,780

Senior

Bond,

5.85%,

8/15/45

...........................

United

Kingdom

300,000

379,827

28,647,324

Trading

Companies

&

Distributors

0.2%

e

Ahern

Rentals,

Inc.

,

Secured

Note

,

144A,

7.375

%

,

5/15/23

......

United

States

400,000

297,250

Aircastle

Ltd.

,

Senior

Note

,

4.25

%

,

6/15/26

..................

United

States

2,800,000

3,007,875

e

Beacon

Roofing

Supply,

Inc.

,

Senior

Note

,

144A,

4.875

%

,

11/01/25

United

States

3,100,000

3,143,446

e

WESCO

Distribution,

Inc.

,

Senior

Note,

144A,

7.125%,

6/15/25

.....................

United

States

1,100,000

1,198,362

Senior

Note,

144A,

7.25%,

6/15/28

......................

United

States

1,900,000

2,137,063

9,783,996

Wireless

Telecommunication

Services

0.6%

e

T-Mobile

USA,

Inc.

,

Senior

Secured

Bond,

144A,

3.875%,

4/15/30

..............

United

States

18,000,000

20,347,560

Senior

Secured

Bond,

144A,

4.375%,

4/15/40

..............

United

States

3,400,000

3,984,902

Senior

Secured

Bond,

144A,

3.3%,

2/15/51

................

United

States

5,700,000

5,595,491

Senior

Secured

Note,

144A,

3.5%,

4/15/25

................

United

States

1,900,000

2,084,671

32,012,624

Total

Corporate

Bonds

(Cost

$1,300,752,183)

...................................

1,385,288,455

i

Senior

Floating

Rate

Interests

2.9%

Aerospace

&

Defense

0.1%

h

Alloy

FinCo

Ltd.,

Facility

Term

Loan

,

B

,

14

%

,

PIK,

(

3-month

USD

LIBOR

+

0.5

%

),

3/06/25

...............................

United

Kingdom

154,715

77,661

Dynasty

Acquisition

Co.,

Inc.,

2020

Term

Loan

,

B1,

3.754%,

(3-month

USD

LIBOR

+

3.5%),

4/06/26

..........

United

States

3,952,418

3,808,155

B2,

3.754%,

(3-month

USD

LIBOR

+

3.5%),

4/06/26

..........

United

States

2,124,956

2,047,395

5,933,211

a

a

a

a

a

a

Airlines

0.1%

Allegiant

Travel

Co.,

Replacement

Term

Loan

,

3.214

%

,

(

3-month

USD

LIBOR

+

3

%

),

2/05/24

............................

United

States

2,070,479

2,028,552

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.,

Initial

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

10/20/27

.................

United

States

518,715

544,749

JetBlue

Airways

Corp.,

Term

Loan

,

6.25

%

,

(

3-month

USD

LIBOR

+

5.25

%

),

6/17/24

.....................................

United

States

161,745

167,845

Kestrel

Bidco

,

Inc.,

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3

%

),

12/11/26

..........................................

Canada

835,094

806,179

3,547,325

a

a

a

a

a

a

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

74

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

i

Senior

Floating

Rate

Interests

(continued)

Auto

Components

0.1%

Adient

US

LLC,

Initial

Term

Loan

,

4.394

%

,

(

3-month

USD

LIBOR

+

4.25%;

1-month

USD

LIBOR

+

4.25%

),

5/06/24

.............

United

States

4,043,450

$

4,056,085

Highline

Aftermarket

Acquisition

LLC,

First

Lien,

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.5

%

),

11/09/27

..................

United

States

228,432

228,717

Panther

BF

Aggregator

2

LP,

First

Lien,

Initial

Dollar

Term

Loan

,

3.621

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

4/30/26

.............

Canada

952,632

954,418

TRICO

Group

LLC,

First

Lien,

Term

Loan

,

B3

,

8.5

%

,

(

3-month

USD

LIBOR

+

7.5

%

),

2/02/24

...............................

United

States

796,447

812,874

j

Truck

Hero,

Inc.,

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

1/31/28

.....................................

United

States

261,731

262,680

6,314,774

a

a

a

a

a

a

Automobiles

0.1%

Thor

Industries,

Inc.,

Initial

USD

Term

Loan

,

3.938

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

2/01/26

..............................

United

States

2,811,382

2,818,411

Biotechnology

0.0%

†

Grifols

Worldwide

Operations

Ltd.,

Dollar

Term

Loan

,

B

,

2.092

%

,

(

1-

week

USD

LIBOR

+

2

%

),

11/15/27

.......................

Ireland

727,665

727,261

Horizon

Therapeutics

USA,

Inc.,

Seventh

Amendment

Refinancing

Term

Loan

,

2.188

%

,

(

1-month

USD

LIBOR

+

2

%

),

5/22/26

.....

United

States

1,079,283

1,080,097

1,807,358

a

a

a

a

a

a

Capital

Markets

0.1%

j

Citadel

Securities

LP,

Term

Loan

,

B

,

2.615

%

,

(

1-month

USD

LIBOR

+

2.5

%

),

2/29/28

....................................

United

States

1,180,000

1,176,065

j

Jane

Street

Group

LLC,

Term

Loan

,

2.875

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

1/31/28

.....................................

United

States

627,827

626,820

Vertical

Midco

GmbH,

USD

Term

Loan

,

4.567

%

,

(

6-month

USD

LIBOR

+

4.25

%

),

6/30/27

..............................

Germany

755,909

763,993

2,566,878

a

a

a

a

a

a

Chemicals

0.0%

†

Cyanco

Intermediate

2

Corp.,

First

Lien,

Initial

Term

Loan

,

3.621

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

3/16/25

...................

United

States

971,239

972,657

Illuminate

Buyer

LLC,

Term

Loan

,

4.121

%

,

(

1-month

USD

LIBOR

+

4

%

),

6/30/27

.......................................

United

States

265,472

266,717

j

INEOS

226

Ltd.,

USD

Term

Loan

,

B

,

3.25

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

1/21/26

.....................................

United

Kingdom

410,392

412,530

j

NIC

Acquisition

Corp.,

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

12/29/27

....................................

United

States

291,278

292,736

1,944,640

a

a

a

a

a

a

Commercial

Services

&

Supplies

0.1%

CCI

Buyer,

Inc.,

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

12/17/27

..........................................

United

States

117,467

118,436

Legalzoom.com,

Inc.,

First

Lien,

2018

Term

Loan

,

4.621

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

11/21/24

..........................

United

States

2,612,139

2,617,050

Prime

Security

Services

Borrower

LLC,

First

Lien,

2019

Refinancing

Term

Loan

,

B1

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

9/23/26

United

States

2,005,126

2,007,993

Staples,

Inc.,

2019

Refinancing

New

Term

Loan

,

B1

,

5.214

%

,

(

3-month

USD

LIBOR

+

5

%

),

4/16/26

.....................

United

States

850,830

835,408

5,578,887

a

a

a

a

a

a

Communications

Equipment

0.0%

†

CommScope

,

Inc.,

Initial

Term

Loan

,

3.371

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

4/06/26

...................................

United

States

1,645,833

1,646,475

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

75

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

i

Senior

Floating

Rate

Interests

(continued)

Containers

&

Packaging

0.0%

†

BWay

Holding

Co.,

Initial

Term

Loan

,

3.381

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

4/03/24

...................................

United

States

1,697,170

$

1,669,591

Diversified

Consumer

Services

0.1%

j

KUEHG

Corp.,

Term

Loan

,

B-3

,

4.75

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

2/21/25

.....................................

United

States

5,960,000

5,788,650

j

Sedgwick

Claims

Management

Services,

Inc.

(Lightning

Cayman

Merger

Sub

Ltd.),

Initial

Term

Loan

,

3.371

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

12/31/25

..................................

United

States

750,000

746,666

6,535,316

a

a

a

a

a

a

Diversified

Financial

Services

0.1%

First

Eagle

Holdings,

Inc.,

2020

Refinancing

Term

Loan

,

2.754

%

,

(

3-month

USD

LIBOR

+

2.5

%

),

2/01/27

...................

United

States

3,308,271

3,303,358

Jefferies

Finance

LLC,

2020

Term

Loan

,

3.938

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

9/30/27

..............................

United

States

279,814

280,864

Verscend

Holding

Corp.,

Term

Loan

,

B

,

4.621

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

8/27/25

...............................

United

States

694,424

696,160

4,280,382

a

a

a

a

a

a

Diversified

Telecommunication

Services

0.1%

Global

Tel

Link,

First

Lien,

Term

Loan

,

4.371

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

11/29/25

.............................

United

States

1,039,375

958,823

Zayo

Group

Holdings,

Inc.,

Initial

Dollar

Term

Loan

,

3.121

%

,

(

1-month

USD

LIBOR

+

3

%

),

3/09/27

.....................

United

States

2,219,830

2,210,118

3,168,941

a

a

a

a

a

a

Electric

Utilities

0.0%

†

Astoria

Energy

LLC,

Advance

(2020)

Term

Loan

,

B

,

4.5

%

,

(

6-month

USD

LIBOR

+

3.5

%

),

12/10/27

..........................

United

States

125,626

125,921

Entertainment

0.2%

Banijay

Entertainment

SAS,

Facility

USD

Term

Loan

,

B

,

3.881

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/01/25

..................

France

1,686,822

1,676,811

Diamond

Sports

Group

LLC,

Term

Loan

,

3.38

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

8/24/26

..............................

United

States

4,826,687

4,146,944

Lions

Gate

Capital

Holdings

LLC,

Term

Loan

,

A

,

1.871

%

,

(

1-month

USD

LIBOR

+

1.75

%

),

3/22/23

..........................

United

States

749,396

745,649

William

Morris

Endeavor

Entertainment

LLC

(IMG

Worldwide

Holdings

LLC),

First

Lien,

Term

Loan

,

B-1

,

2.88

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

5/18/25

..............................

United

States

6,503,144

6,089,576

12,658,980

a

a

a

a

a

a

Food

&

Staples

Retailing

0.0%

†

GNC

Holdings,

Inc.,

Second

Lien,

Term

Loan

,

6.234

%

,

(

3-month

USD

LIBOR

+

6

%

),

10/30/26

...........................

United

States

430,235

322,677

Food

Products

0.0%

†

h

CSM

Bakery

Solutions

Ltd.,

Second

Lien,

Term

Loan

,

8.75

%

,

PIK,

(

3-month

USD

LIBOR

+

7.75

%

),

7/05/21

..................

United

States

141,102

138,573

JBS

USA

Lux

SA,

New

Term

Loan

,

2.121

%

,

(

1-month

USD

LIBOR

+

2

%

),

5/01/26

.......................................

Luxembourg

941,750

942,292

1,080,865

a

a

a

a

a

a

Health

Care

Providers

&

Services

0.1%

ADMI

Corp.,

Amendment

No.

3

Incremental

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/23/27

....................

United

States

294,903

297,852

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

76

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

i

Senior

Floating

Rate

Interests

(continued)

Health

Care

Providers

&

Services

(continued)

BrightSpring

Health

Services,

Term

Loan

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/05/26

..............................

United

States

50,000

$

50,344

CNT

Holdings

I

Corp.,

First

Lien,

Term

Loan

Facility

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

11/08/27

.........................

United

States

107,842

108,593

j

eResearchTechnology

,

Inc.,

First

Lien,

Initial

Term

Loan

,

5.5

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

2/04/27

...................

United

States

420,710

423,165

National

Mentor

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.418%,

(1-month

USD

LIBOR

+

4.25%;

3-month

USD

LIBOR

+

4.25%),

3/09/26

.....................................

United

States

397,888

398,882

C,

4.51%,

(1-month

USD

LIBOR

+

4.25%),

3/09/26

..........

United

States

18,208

18,254

j,k

National

Mentor

Holdings,

Inc.,

Incremental

Term

Loan

,

B,

TBD,

3/09/26

.....................................

United

States

79,561

79,760

C,

TBD,

3/09/26

.....................................

United

States

3,071

3,078

Navicure

,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.121

%

,

(

1-month

USD

LIBOR

+

4

%

),

10/22/26

...............................

United

States

992,500

993,741

Pathway

Vet

Alliance

LLC,

First

Lien,

Initial

Term

Loan

,

4.121

%

,

(

1-month

USD

LIBOR

+

4

%

),

3/31/27

.....................

United

States

1,707,166

1,710,376

Phoenix

Guarantor,

Inc.,

First

Lien,

Term

Loan

,

B1

,

3.38

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

3/05/26

..........................

United

States

1,653,860

1,652,140

Pluto

Acquisition

I,

Inc.,

Incremental

Term

Loan

,

5.5

%

,

(

1-month

USD

LIBOR

+

5

%

),

6/22/26

................................

United

States

176,929

177,813

5,913,998

a

a

a

a

a

a

Hotels,

Restaurants

&

Leisure

0.1%

24

Hour

Fitness

Worldwide,

Inc.,

Exit

Term

Loan

,

5.24

%

,

(

1-month

USD

LIBOR

+

5

%

),

12/30/25

...........................

United

States

1,677,081

1,498,195

Caesars

Resort

Collection

LLC,

Term

Loan

,

B,

2.871%,

(1-month

USD

LIBOR

+

2.75%),

12/23/24

.........

United

States

1,333,325

1,312,905

B1,

4.621%,

(1-month

USD

LIBOR

+

4.5%),

7/21/25

..........

United

States

119,804

119,948

IRB

Holding

Corp.,

Fourth

Amendment

Incremental

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

12/15/27

............

United

States

198,657

199,632

3,130,680

a

a

a

a

a

a

Household

Durables

0.0%

†

Playtika

Holding

Corp.,

Term

Loan

,

B

,

7

%

,

(

3-month

USD

LIBOR

+

6

%

),

12/10/24

......................................

United

States

1,415,500

1,426,194

Household

Products

0.0%

†

a,g,h

FGI

Operating

Co.

LLC,

Term

Loan

,

12

%

,

PIK,

(

3-month

USD

LIBOR

+

11

%

),

5/16/22

.....................................

United

States

597,248

314,157

Insurance

0.1%

Alliant

Holdings

Intermediate

LLC,

2018

Initial

Term

Loan

,

3.371

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

5/09/25

..................

United

States

1,534,394

1,529,499

Alliant

Holdings

Intermediate

LLC,

Term

Loan

,

B3

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

11/05/27

.........................

United

States

41,535

41,661

AssuredPartners

,

Inc.,

2020

February

Refinancing

Term

Loan

,

3.647

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

2/12/27

.............

United

States

1,994,925

1,987,244

Asurion

LLC,

New

Term

Loan

,

B-8

,

3.371

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

12/23/26

....................................

United

States

101,536

101,155

Asurion

LLC,

Term

Loan

,

5.365%,

(1-month

USD

LIBOR

+

5.25%),

12/31/27

...........

United

States

29,239

29,531

B9,

3.365%,

(1-month

USD

LIBOR

+

3.25%),

12/31/27

........

United

States

507,797

505,576

4,194,666

a

a

a

a

a

a

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

77

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

i

Senior

Floating

Rate

Interests

(continued)

Internet

&

Direct

Marketing

Retail

0.0%

†

MH

Sub

I

LLC

(Micro

Holding

Corp.),

First

Lien,

2020

June

New

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

9/13/24

....

United

States

167,334

$

168,066

IT

Services

0.1%

Arches

Buyer,

Inc.,

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/06/27

......................................

United

States

343,786

345,873

Aventiv

Technologies

LLC,

Second

Lien,

Initial

Term

Loan

,

9.25

%

,

(

6-month

USD

LIBOR

+

8.25

%

),

11/01/25

..................

United

States

416,510

341,353

Barracuda

Networks,

Inc.,

First

Lien,

2020

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

2/12/25

..................

United

States

344,418

345,207

Milano

Acquisition

Corp.,

Term

Loan

,

B

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

10/01/27

...............................

United

States

1,047,579

1,052,168

Pitney

Bowes,

Inc.,

Incremental

Term

Loan

,

B

,

5.63

%

,

(

1-month

USD

LIBOR

+

5.5

%

),

1/07/25

...............................

United

States

2,400,459

2,399,715

TIBCO

Software,

Inc.,

Term

Loan

,

B3

,

3.88

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

6/30/26

...................................

United

States

1,890,500

1,890,500

6,374,816

a

a

a

a

a

a

Leisure

Products

0.2%

Bass

Pro

Group

LLC,

Initial

Term

Loan

,

5.75

%

,

(

1-month

USD

LIBOR

+

5

%

),

9/25/24

................................

United

States

1,234,056

1,238,240

j

Hercules

Achievement,

Inc.

(Varsity

Brands

Holding

Co.,

Inc.),

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

12/16/24

..........................................

United

States

6,106,700

5,873,027

NASCAR

Holdings

LLC,

Initial

Term

Loan

,

2.897

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

10/19/26

.............................

United

States

2,089,337

2,092,273

9,203,540

a

a

a

a

a

a

Machinery

0.1%

Altra

Industrial

Motion

Corp.,

Term

Loan

,

2.121

%

,

(

1-month

USD

LIBOR

+

2

%

),

10/01/25

...............................

United

States

1,380,625

1,382,572

Navistar,

Inc.,

Term

Loan

,

B

,

3.63

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

11/06/24

..........................................

United

States

3,387,614

3,392,272

4,774,844

a

a

a

a

a

a

Media

0.2%

j

Cengage

Learning,

Inc.,

2016

Refinancing

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

6/07/23

..................

United

States

6,090,345

5,873,407

Clear

Channel

Outdoor

Holdings,

Inc.,

Term

Loan

,

B

,

3.711

%

,

(

2-month

USD

LIBOR

+

3.5%;

3-month

USD

LIBOR

+

3.5%

),

8/21/26

...........................................

United

States

746,222

729,663

Gray

Television,

Inc.,

Term

Loan

,

C

,

2.644

%

,

(

1-month

USD

LIBOR

+

2.5

%

),

1/02/26

......................................

United

States

2,181,175

2,181,175

Radiate

HoldCo

LLC,

Term

Loan

,

B

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

9/25/26

......................................

United

States

138,482

138,771

Sinclair

Television

Group,

Inc.,

Term

Loan

,

B

,

2.38

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

1/03/24

..............................

United

States

835,309

831,132

Univision

Communications,

Inc.,

First

Lien,

2020

Replacement

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/15/26

........

United

States

1,184,718

1,188,829

j

Virgin

Media

Bristol

LLC,

Term

Loan

,

Q

,

2.627

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

1/31/29

..............................

United

States

60,844

61,034

11,004,011

a

a

a

a

a

a

Multiline

Retail

0.0%

†

Harbor

Freight

Tools

USA,

Inc.,

Initial

Term

Loan

(2020)

,

4

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

10/19/27

.................

United

States

1,193,524

1,196,657

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

78

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

i

Senior

Floating

Rate

Interests

(continued)

Oil,

Gas

&

Consumable

Fuels

0.1%

Buckeye

Partners

LP,

Initial

Term

Loan

,

2.897

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

11/01/26

.............................

United

States

1,359,725

$

1,361,894

j,l

Fieldwood

Energy

LLC,

Debtor-in-possession

Facility

Term

Loan

,

9.75

%

,

(

1-month

USD

LIBOR

+

8.75

%

),

8/04/21

.............

United

States

70,077

71,654

g

Fieldwood

Energy

LLC,

First

Lien,

Closing

Date

Term

Loan

,

6.25

%

,

(

3-month

USD

LIBOR

+

5.25

%

),

4/11/22

..................

United

States

5,877,828

1,525,796

UTEX

Industries,

Inc.,

First

Out

Term

Loan

,

8.5

%

,

(

1-month

USD

LIBOR

+

7

%

),

12/03/24

...............................

United

States

31,832

32,111

UTEX

Industries,

Inc.,

Second

Out

Term

Loan

,

11

%

,

(

1-month

USD

LIBOR

+

9.5

%

),

12/03/25

..............................

United

States

19,463

19,333

3,010,788

a

a

a

a

a

a

Paper

&

Forest

Products

0.0%

†

Appvion

Operations,

Inc.,

Term

Loan

,

7

%

,

(

3-month

USD

LIBOR

+

6

%

),

6/12/26

.......................................

United

States

140,585

139,297

Personal

Products

0.1%

j

Coty,

Inc.,

USD

Term

Loan

,

B

,

2.382

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

4/07/25

.....................................

United

States

6,256,672

5,914,714

Pharmaceuticals

0.1%

Bausch

Health

Cos.,

Inc.,

First

Incremental

Term

Loan

,

2.877

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

11/27/25

..................

United

States

2,250,000

2,250,180

Bausch

Health

Cos.,

Inc.,

Initial

Term

Loan

,

3.121

%

,

(

1-month

USD

LIBOR

+

3

%

),

6/02/25

................................

United

States

255,500

256,039

Catalent

Pharma

Solutions,

Inc.,

Dollar

Term

Loan

,

B2

,

3.25

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

5/18/26

..................

United

States

1,144,102

1,149,822

3,656,041

a

a

a

a

a

a

Professional

Services

0.0%

†

j

Dun

&

Bradstreet

Corp.

(The),

Initial

Term

Loan

Borrowing

,

B

,

3.378

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

2/06/26

............

United

States

36,777

36,921

UKG,

Inc.,

First

Lien,

2021

Incremental

Term

Loan

,

4

%

,

(

2-month

USD

LIBOR

+

3.25

%

),

5/04/26

..........................

United

States

157,210

158,108

195,029

a

a

a

a

a

a

Real

Estate

Management

&

Development

0.0%

†

j

Cushman

&

Wakefield

U.S.

Borrower

LLC,

Replacement

Term

Loan

,

2.873

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

8/21/25

............

United

States

1,614,750

1,611,553

Road

&

Rail

0.1%

Avis

Budget

Car

Rental

LLC,

New

Term

Loan

,

B

,

2.38

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

8/06/27

..........................

United

States

2,815,465

2,759,662

Kenan

Advantage

Group

Holdings

Corp.

(The),

Initial

Canadian

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3

%

),

7/29/22

.............

United

States

186,795

185,179

Kenan

Advantage

Group

Holdings

Corp.

(The),

Initial

U.S.

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3

%

),

7/29/22

.............

United

States

785,514

778,719

a

Onsite

Rental

Group

Operations

Pty.

Ltd.,

Term

Loan

,

B

,

5.5

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

10/26/22

..................

Australia

133,931

124,748

Ventia

Midco

Pty.

Ltd.,

2017

Refinancing

USD

Term

Loan

,

B

,

5

%

,

(

3-month

USD

LIBOR

+

4

%

),

5/21/26

.....................

Australia

2,642,676

2,642,676

6,490,984

a

a

a

a

a

a

Semiconductors

&

Semiconductor

Equipment

0.0%

†

ON

Semiconductor

Corp.,

2019

New

Replacement

Term

Loan

,

B4

,

2.121

%

,

(

1-month

USD

LIBOR

+

2

%

),

9/19/26

..............

United

States

851,751

854,945

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

79

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

i

Senior

Floating

Rate

Interests

(continued)

Software

0.4%

j

athenahealth

,

Inc.,

First

Lien,

Term

Loan

,

B

,

4.633

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

2/11/26

...............................

United

States

1,762,968

$

1,771,510

Blackboard,

Inc.,

First

Lien,

Term

Loan

,

B5

,

7

%

,

(

3-month

USD

LIBOR

+

6

%

),

6/30/24

................................

United

States

1,742,340

1,740,519

Ceridian

HCM

Holding,

Inc.,

Initial

Term

Loan

,

2.592

%

,

(

1-week

USD

LIBOR

+

2.5

%

),

4/30/25

...............................

United

States

795,421

795,222

DCert

Buyer,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.121

%

,

(

1-month

USD

LIBOR

+

4

%

),

10/16/26

...........................

United

States

1,875,825

1,882,859

Epicor

Software

Corp.,

Term

Loan

,

B

,

5.25

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

7/30/27

...................................

United

States

357,724

360,028

Greeneden

U.S.

Holdings

I

LLC,

Term

Loan

,

B

,

4.75

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/01/27

...........................

United

States

338,735

340,429

Hyland

Software,

Inc.,

First

Lien,

2018

Refinancing

Term

Loan

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

7/01/24

..............

United

States

394,473

396,645

Ivanti

Software,

Inc.,

First

Lien,

Initial

Term

Loan

,

5.75

%

,

(

3-month

USD

LIBOR

+

4.75

%

),

12/01/27

.........................

United

States

530,000

535,300

LogMeIn,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.881

%

,

(

1-month

USD

LIBOR

+

4.75

%

),

8/31/27

..............................

United

States

1,028,662

1,025,874

Mitchell

International,

Inc.,

First

Lien,

Amendment

No.

2

New

Term

Loan

Facility

,

4.75

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

11/29/24

.

United

States

628,425

630,257

Perforce

Software,

Inc.,

First

Lien,

New

Term

Loan

,

3.871

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

7/01/26

..................

United

States

1,002,338

1,001,712

Quest

Software

US

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.462

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

5/16/25

............

United

States

2,019,669

2,022,557

Solera

LLC

(Solera

Finance,

Inc.),

Dollar

Term

Loan

,

2.871

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

3/03/23

..................

United

States

3,243,939

3,235,034

Surf

Holdings

SARL,

First

Lien,

Dollar

Term

Loan

,

3.726

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

3/05/27

...........................

Luxembourg

1,558,068

1,559,042

Veritas

US,

Inc.,

Term

Loan

,

B

,

6.5

%

,

(

3-month

USD

LIBOR

+

5.5

%

),

9/01/25

...........................................

United

States

1,236,900

1,246,177

18,543,165

a

a

a

a

a

a

Specialty

Retail

0.1%

j

Party

City

Holdings,

Inc.,

2018

Replacement

Term

Loan

,

3.25

%

,

(

2-month

USD

LIBOR

+

2.5%;

3-month

USD

LIBOR

+

2.5%

),

8/19/22

...........................................

United

States

3,759,155

3,634,633

j

Petco

Animal

Supplies,

Inc.,

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

1/26/23

..............................

United

States

2,267,658

2,268,304

PetSmart,

Inc.,

Term

Loan

,

B

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

12/31/27

..........................................

United

States

292,389

290,927

Woof

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

1-year

USD

LIBOR

+

3.75

%

),

12/21/27

.............................

United

States

177,563

178,599

6,372,463

a

a

a

a

a

a

Technology

Hardware,

Storage

&

Peripherals

0.0%

†

Amentum

Government

Services

Holdings

LLC,

Incremental

Term

Loan

,

5.5

%

,

(

3-month

USD

LIBOR

+

4.75

%

),

1/29/27

.........

United

States

300,000

302,250

Cardtronics

USA,

Inc.,

Initial

Term

Loan

,

5

%

,

(

1-month

USD

LIBOR

+

4

%

),

6/29/27

.......................................

United

States

200,532

201,598

503,848

a

a

a

a

a

a

Wireless

Telecommunication

Services

0.0%

†

Altice

France

SA,

USD

Incremental

Term

Loan

,

B-13

,

4.127

%

,

(

1-month

USD

LIBOR

+

4

%

),

8/14/26

.....................

France

256,581

257,080

Total

Senior

Floating

Rate

Interests

(Cost

$161,757,812)

.........................

157,252,168

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

80

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Marketplace

Loans

0.2%

Diversified

Financial

Services

0.2%

a

Lending

Club

-

LCX

PM,

8.46%

-

21.49%,

10/07/23

-

1/28/26

.....

United

States

3,053,190

$

3,233,922

a

Lending

Club

-

LCX,

6.46%

-

25.65%,

7/15/22

-

4/14/25

.........

United

States

4,556,211

4,165,827

a

Upgrade,

13.64%

-

30.99%,

9/30/22

-

6/14/25

................

United

States

2,721,318

2,448,480

9,848,229

a

a

a

a

a

a

Total

Marketplace

Loans

(Cost

$10,592,116)

....................................

9,848,229

Foreign

Government

and

Agency

Securities

4.5%

e

Banque

Centrale

de

Tunisie

,

Senior

Bond

,

144A,

5.75

%

,

1/30/25

..

Tunisia

2,400,000

2,199,576

e

Banque

Ouest

Africaine

de

Developpement

,

Senior

Bond

,

144A,

5

%

,

7/27/27

...........................................

Supranational

m

10,700,000

12,115,289

e

Belarus

Government

Bond

,

Senior

Bond

,

144A,

7.625

%

,

6/29/27

..

Belarus

13,300,000

14,597,774

Brazil

Government

Bond

,

Senior

Bond

,

5.625

%

,

2/21/47

........

Brazil

6,500,000

7,285,168

Colombia

Government

Bond

,

Senior

Bond

,

5

%

,

6/15/45

........

Colombia

8,800,000

10,236,600

e

Dominican

Republic

Government

Bond

,

Senior

Note

,

144A,

8.9

%

,

2/15/23

...........................................

Dominican

Republic

610,400,000

DOP

10,846,170

e

Egypt

Government

Bond

,

Senior

Bond

,

144A,

8.875

%

,

5/29/50

...

Egypt

4,500,000

5,109,930

e,f

Electricite

de

France

SA

,

Junior

Sub.

Bond

,

144A,

5.25%

to

1/29/23,

FRN

thereafter

,

Perpetual

.............................

France

24,000,000

25,200,000

e

Gabon

Government

Bond

,

Senior

Bond

,

144A,

6.625

%

,

2/06/31

..

Gabon

11,000,000

10,891,518

e

Indonesia

Government

Bond

,

Senior

Bond

,

144A,

4.35

%

,

1/08/27

.

Indonesia

9,100,000

10,540,439

e

Iraq

Government

Bond

,

Senior

Bond

,

144A,

5.8

%

,

1/15/28

......

Iraq

14,262,500

13,470,075

e

Israel

Electric

Corp.

Ltd.

,

Senior

Secured

Bond

,

144A,

Reg

S,

4.25

%

,

8/14/28

...........................................

Israel

6,700,000

7,656,425

Mexico

Government

Bond

,

Senior

Bond,

4.15%,

3/28/27

...........................

Mexico

7,700,000

8,821,389

Senior

Bond,

4.5%,

4/22/29

............................

Mexico

9,500,000

10,957,063

e

Nigeria

Government

Bond

,

Senior

Bond

,

144A,

9.248

%

,

1/21/49

..

Nigeria

3,600,000

4,198,630

e

Panama

Government

Bond

,

Senior

Note

,

144A,

3.75

%

,

4/17/26

..

Panama

5,700,000

6,249,280

Peru

Government

Bond

,

Senior

Bond,

2.783%,

1/23/31

..........................

Peru

8,000,000

8,626,000

Senior

Bond,

6.55%,

3/14/37

...........................

Peru

2,900,000

4,333,484

Petroleos

Mexicanos

,

Senior

Bond

,

6.625

%

,

6/15/35

...........

Mexico

6,000,000

5,649,000

e

Russia

Government

Bond

,

Senior

Bond

,

144A,

4.875

%

,

9/16/23

..

Russia

11,600,000

12,775,846

South

Africa

Government

Bond

,

Senior

Bond

,

5.875

%

,

6/22/30

...

South

Africa

9,500,000

10,475,232

Turkey

Government

Bond

,

Senior

Bond

,

5.25

%

,

3/13/30

........

Turkey

10,000,000

9,971,720

e

Ukraine

Government

Bond

,

Senior

Note,

144A,

7.75%,

9/01/21

.......................

Ukraine

229,000

236,055

Senior

Note,

144A,

7.75%,

9/01/22

.......................

Ukraine

229,000

243,513

Senior

Note,

144A,

7.75%,

9/01/23

.......................

Ukraine

229,000

249,680

Senior

Note,

144A,

7.75%,

9/01/24

.......................

Ukraine

229,000

253,410

Senior

Note,

144A,

7.75%,

9/01/25

.......................

Ukraine

229,000

256,343

Senior

Bond,

144A,

7.75%,

9/01/26

......................

Ukraine

229,000

257,863

Senior

Bond,

144A,

7.75%,

9/01/27

......................

Ukraine

229,000

256,783

Senior

Bond,

144A,

7.375%,

9/25/32

.....................

Ukraine

12,400,000

13,338,928

n

VRI,

GDP

Linked

Security,

Senior

Bond,

144A,

5/31/40

.......

Ukraine

474,000

536,720

o

Uruguay

Government

Bond

,

Index

Linked,

Senior

Bond

,

3.7

%

,

6/26/37

...........................................

Uruguay

429,750,657

UYU

11,539,554

Total

Foreign

Government

and

Agency

Securities

(Cost

$234,973,237)

............

239,375,457

U.S.

Government

and

Agency

Securities

18.8%

U.S.

Treasury

Bonds

,

o

3.625%,

4/15/28

.....................................

United

States

6,000,000

13,368,212

1.125%,

5/15/40

.....................................

United

States

26,000,000

23,802,187

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

81

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

U.S.

Government

and

Agency

Securities

(continued)

U.S.

Treasury

Bonds,

(continued)

1.125%,

8/15/40

.....................................

United

States

29,700,000

$

27,096,609

3.125%,

11/15/41

....................................

United

States

14,500,000

18,323,809

2.5%,

5/15/46

......................................

United

States

9,000,000

10,331,719

2.25%,

8/15/46

.....................................

United

States

34,800,000

38,139,984

2.75%,

11/15/47

.....................................

United

States

25,500,000

30,727,500

3.125%,

5/15/48

.....................................

United

States

16,500,000

21,273,398

3%,

8/15/48

........................................

United

States

17,000,000

21,470,469

2.875%,

5/15/49

.....................................

United

States

14,000,000

17,352,344

2.25%,

8/15/49

.....................................

United

States

39,000,000

42,797,930

1.25%,

5/15/50

.....................................

United

States

32,600,000

28,221,922

U.S.

Treasury

Notes

,

o

0.125%,

4/15/22

.....................................

United

States

8,000,000

8,780,965

o

0.125%,

7/15/22

.....................................

United

States

6,200,000

7,268,639

0.125%,

8/31/22

.....................................

United

States

25,000,000

25,011,230

0.125%,

11/30/22

....................................

United

States

50,000,000

50,017,578

o

0.125%,

1/15/23

.....................................

United

States

6,300,000

7,414,267

o

0.625%,

1/15/24

.....................................

United

States

7,500,000

9,044,071

o

0.125%,

7/15/24

.....................................

United

States

8,500,000

10,054,255

o

0.25%,

1/15/25

.....................................

United

States

4,000,000

4,785,381

1.125%,

2/28/25

.....................................

United

States

50,000,000

51,658,203

0.25%,

6/30/25

.....................................

United

States

145,000,000

144,359,961

0.25%,

7/31/25

.....................................

United

States

90,000,000

89,546,485

0.25%,

8/31/25

.....................................

United

States

80,000,000

79,556,250

0.25%,

9/30/25

.....................................

United

States

68,000,000

67,575,000

0.375%,

11/30/25

....................................

United

States

128,000,000

127,809,999

0.375%,

7/31/27

.....................................

United

States

22,200,000

21,771,609

Total

U.S.

Government

and

Agency

Securities

(Cost

$983,112,882)

................

997,559,976

Asset-Backed

Securities

12.3%

Airlines

0.0%

†

United

Airlines

Pass-Through

Trust

,

2020-1

,

B

,

4.875

%

,

7/15/27

..

United

States

1,500,000

1,545,084

Commercial

Services

&

Supplies

0.2%

e,p

Armada

Euro

CLO

IV

DAC

,

4A

,

B

,

144A,

FRN

,

1.7

%

,

(

EUR003M

+

1.7

%

),

7/15/33

......................................

Ireland

5,100,000

EUR

6,206,599

e,p

LCM

XXII

Ltd.

,

22A,

A2R,

144A,

FRN,

1.674%,

(3-month

USD

LIBOR

+

1.45%),

10/20/28

..........................................

United

States

1,000,000

992,634

22A,

CR,

144A,

FRN,

3.024%,

(3-month

USD

LIBOR

+

2.8%),

10/20/28

..........................................

United

States

1,000,000

959,089

8,158,322

a

a

a

a

a

a

Diversified

Financial

Services

12.1%

e,p

Adagio

CLO

VIII

DAC

,

VIII-A

,

B1

,

144A,

FRN

,

1.65

%

,

(

3-month

EURIBOR

+

1.65

%

),

4/15/32

...........................

Ireland

2,050,000

EUR

2,494,140

p

Ameriquest

Mortgage

Securities,

Inc.

,

2004-R4

,

M1

,

FRN

,

0.955

%

,

(

1-month

USD

LIBOR

+

0.825

%

),

6/25/34

.................

United

States

321,018

332,081

e,p

AMMC

CLO

15

Ltd.

,

2014-15A

,

BRR

,

144A,

FRN

,

2.041

%

,

(

3-month

USD

LIBOR

+

1.8

%

),

1/15/32

...........................

United

States

922,984

908,954

e,p

AMMC

CLO

21

Ltd.

,

2017-21A

,

C

,

144A,

FRN

,

2.314

%

,

(

3-month

USD

LIBOR

+

2.1

%

),

11/02/30

..........................

United

States

1,000,000

990,754

e,p

AMMC

CLO

XI

Ltd.

,

2012-11A,

BR2,

144A,

FRN,

1.814%,

(3-month

USD

LIBOR

+

1.6%),

4/30/31

......................................

United

States

5,050,000

5,051,540

2012-11A,

CR2,

144A,

FRN,

2.114%,

(3-month

USD

LIBOR

+

1.9%),

4/30/31

......................................

United

States

2,750,000

2,669,501

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

82

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Asset-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

e,p

Antares

CLO

Ltd.

,

2018-1A

,

B

,

144A,

FRN

,

1.874

%

,

(

3-month

USD

LIBOR

+

1.65

%

),

4/20/31

..............................

United

States

12,900,000

$

12,724,482

e,p

Ares

European

CLO

VIII

BV

,

8A

,

BR

,

144A,

FRN

,

1.6

%

,

(

3-month

EURIBOR

+

1.6

%

),

4/17/32

............................

Ireland

2,900,000

EUR

3,524,077

e,p

Ares

LII

CLO

Ltd.

,

2019-52A

,

A2

,

144A,

FRN

,

1.872

%

,

(

3-month

USD

LIBOR

+

1.65

%

),

4/22/31

..........................

United

States

1,382,114

1,382,607

e,p

Ares

XLVIII

CLO

Ltd.

,

2018-48A

,

D

,

144A,

FRN

,

2.924

%

,

(

3-month

USD

LIBOR

+

2.7

%

),

7/20/30

...........................

United

States

2,000,000

1,934,149

e,p

Atrium

XIV

LLC

,

14A

,

A2A

,

144A,

FRN

,

1.673

%

,

(

3-month

USD

LIBOR

+

1.45

%

),

8/23/30

..............................

United

States

7,400,000

7,404,609

e,p

Bain

Capital

Credit

CLO

Ltd.

,

2018-1A,

A1,

144A,

FRN,

1.178%,

(3-month

USD

LIBOR

+

0.96%),

4/23/31

.....................................

United

States

12,000,000

11,998,312

2018-1A,

A2,

144A,

FRN,

1.368%,

(3-month

USD

LIBOR

+

1.15%),

4/23/31

.....................................

United

States

5,100,000

5,062,259

2020-4A,

B,

144A,

FRN,

2.111%,

(3-month

USD

LIBOR

+

1.95%),

10/20/33

..........................................

United

States

8,350,000

8,359,067

e,p

BCC

Middle

Market

CLO

LLC

,

2018-1A

,

A2

,

144A,

FRN

,

2.374

%

,

(

3-month

USD

LIBOR

+

2.15

%

),

10/20/30

.................

United

States

5,100,000

4,984,003

e,p

Blackrock

European

CLO

IX

DAC

,

9A,

A,

144A,

FRN,

0.9%,

(3-month

EURIBOR

+

0.9%),

12/15/32

Ireland

17,350,000

EUR

21,036,123

9A,

B,

144A,

FRN,

1.55%,

(3-month

EURIBOR

+

1.55%),

12/15/32

Ireland

5,250,000

EUR

6,351,626

e,p

BlueMountain

CLO

Ltd.

,

2012-2A,

DR2,

144A,

FRN,

3.124%,

(3-month

USD

LIBOR

+

2.9%),

11/20/28

.....................................

United

States

1,753,000

1,711,373

2014-2A,

CR2,

144A,

FRN,

2.424%,

(3-month

USD

LIBOR

+

2.2%),

10/20/30

.....................................

United

States

4,700,000

4,696,909

2016-3A,

CR,

144A,

FRN,

2.421%,

(3-month

USD

LIBOR

+

2.2%),

11/15/30

..........................................

United

States

500,000

499,672

2018-1A,

B,

144A,

FRN,

1.914%,

(3-month

USD

LIBOR

+

1.7%),

7/30/30

...........................................

United

States

272,725

272,318

2018-3A,

C,

144A,

FRN,

2.418%,

(3-month

USD

LIBOR

+

2.2%),

10/25/30

..........................................

United

States

1,071,430

1,070,834

e,p

BlueMountain

Fuji

EUR

CLO

V

DAC

,

5A

,

B

,

144A,

FRN

,

1.55

%

,

(

3-month

EURIBOR

+

1.55

%

),

1/15/33

....................

Ireland

6,250,000

EUR

7,602,198

e,p

BlueMountain

Fuji

US

CLO

III

Ltd.

,

2017-3A,

C,

144A,

FRN,

1.941%,

(3-month

USD

LIBOR

+

1.7%),

1/15/30

...........................................

United

States

2,300,000

2,264,207

2017-3A,

D,

144A,

FRN,

2.641%,

(3-month

USD

LIBOR

+

2.4%),

1/15/30

...........................................

United

States

1,600,000

1,524,270

e,p

Burnham

Park

CLO

Ltd.

,

2016-1A

,

BR

,

144A,

FRN

,

1.724

%

,

(

3-month

USD

LIBOR

+

1.5

%

),

10/20/29

..................

United

States

1,488,189

1,487,076

e,p

Buttermilk

Park

CLO

Ltd.

,

2018-1A

,

C

,

144A,

FRN

,

2.341

%

,

(

3-month

USD

LIBOR

+

2.1

%

),

10/15/31

..................

United

States

1,452,380

1,454,303

e,p

Carlyle

Global

Market

Strategies

CLO

Ltd.

,

2014-1A,

A1R2,

144A,

FRN,

1.193%,

(3-month

USD

LIBOR

+

0.97%),

4/17/31

.....................................

United

States

722,802

722,623

2014-1A,

A2R2,

144A,

FRN,

1.353%,

(3-month

USD

LIBOR

+

1.13%),

4/17/31

.....................................

United

States

6,300,000

6,182,383

2014-1A,

DR,

144A,

FRN,

2.823%,

(3-month

USD

LIBOR

+

2.6%),

4/17/31

...........................................

United

States

3,175,000

3,004,610

e,p

Carlyle

GMS

Finance

MM

CLO

LLC

,

2015-1A

,

A2R

,

144A,

FRN

,

2.441

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

10/15/31

............

United

States

10,000,000

9,812,831

e,p

Carlyle

US

CLO

Ltd.

,

2017-3A,

B,

144A,

FRN,

2.574%,

(3-month

USD

LIBOR

+

2.35%),

7/20/29

...........................................

United

States

1,000,000

998,339

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

83

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Asset-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

e,p

Carlyle

US

CLO

Ltd.,

(continued)

2017-4A,

C,

144A,

FRN,

3.041%,

(3-month

USD

LIBOR

+

2.8%),

1/15/30

...........................................

United

States

545,000

$

526,996

2017-5A,

A2,

144A,

FRN,

1.624%,

(3-month

USD

LIBOR

+

1.4%),

1/20/30

...........................................

United

States

2,740,000

2,699,778

2017-5A,

B,

144A,

FRN,

2.024%,

(3-month

USD

LIBOR

+

1.8%),

1/20/30

...........................................

United

States

7,000,000

6,801,674

e,p

Catamaran

CLO

Ltd.

,

2015-1A

,

C2R

,

144A,

FRN

,

2.172

%

,

(

3-month

USD

LIBOR

+

1.95

%

),

4/22/27

..........................

United

States

7,600,000

7,568,709

e,p

Cent

CLO

21

Ltd.

,

2014-21A

,

CR2

,

144A,

FRN

,

3.413

%

,

(

3-month

USD

LIBOR

+

3.2

%

),

7/27/30

...........................

United

States

3,123,000

3,032,909

e

CF

Hippolyta

LLC

,

2020-1

,

A1

,

144A,

1.69

%

,

7/15/60

..........

United

States

6,317,988

6,455,518

e,p

Cole

Park

CLO

Ltd.

,

2015-1A

,

BR

,

144A,

FRN

,

1.824

%

,

(

3-month

USD

LIBOR

+

1.6

%

),

10/20/28

..........................

United

States

2,571,428

2,574,477

e,q

Consumer

Loan

Underlying

Bond

Certificate

Issuer

Trust

I

,

2018-14,

PT,

144A,

FRN,

9.46%,

9/16/41

..................

United

States

871,320

849,944

2018-29,

PT,

144A,

FRN,

27.093%,

12/15/43

...............

United

States

842,639

821,590

2019-26,

PT,

144A,

FRN,

19.577%,

8/15/44

................

United

States

4,046,479

3,928,879

2019-31,

PT,

144A,

FRN,

19.55%,

9/15/44

.................

United

States

3,657,969

3,513,084

2019-37,

PT,

144A,

FRN,

18.312%,

10/17/44

...............

United

States

4,115,715

3,945,176

2019-42,

PT,

144A,

FRN,

18.677%,

11/15/44

...............

United

States

4,797,920

4,641,901

2019-51,

PT,

144A,

FRN,

16.134%,

1/15/45

................

United

States

5,990,732

5,794,228

2019-52,

PT,

144A,

FRN,

16.405%,

1/15/45

................

United

States

5,971,387

5,816,034

2019-S1,

PT,

144A,

FRN,

15.064%,

4/15/44

................

United

States

2,384,704

2,280,965

2019-S2,

PT,

144A,

FRN,

14.235%,

5/16/44

................

United

States

1,957,126

1,899,863

2019-S3,

PT,

144A,

FRN,

14.033%,

6/15/44

................

United

States

2,793,765

2,700,792

2019-S4,

PT,

144A,

FRN,

11.862%,

8/15/44

................

United

States

3,182,153

3,076,655

2019-S5,

PT,

144A,

FRN,

13.112%,

9/15/44

................

United

States

3,278,519

3,168,975

2019-S6,

PT,

144A,

FRN,

11.165%,

10/17/44

...............

United

States

3,179,218

3,020,912

2019-S7,

PT,

144A,

FRN,

11.301%,

12/15/44

...............

United

States

3,470,898

3,315,820

2019-S8,

PT,

144A,

FRN,

10.21%,

1/15/45

.................

United

States

4,387,508

4,169,959

2020-2,

PT,

144A,

FRN,

16.489%,

3/15/45

.................

United

States

6,002,271

5,818,662

2020-7,

PT,

144A,

FRN,

16.191%,

4/17/45

.................

United

States

4,015,100

3,854,087

e,p

Cook

Park

CLO

Ltd.

,

2018-1A

,

A2

,

144A,

FRN

,

1.343

%

,

(

3-month

USD

LIBOR

+

1.12

%

),

4/17/30

..........................

United

States

6,000,000

5,953,275

p

CWABS,

Inc.

,

2004-1

,

M1

,

FRN

,

0.88

%

,

(

1-month

USD

LIBOR

+

0.75

%

),

3/25/34

.....................................

United

States

372,208

371,407

e,p

Dryden

42

Senior

Loan

Fund

,

2016-42A

,

DR

,

144A,

FRN

,

3.171

%

,

(

3-month

USD

LIBOR

+

2.93

%

),

7/15/30

..................

United

States

800,000

796,489

e,p

Dryden

45

Senior

Loan

Fund

,

2016-45A

,

CR

,

144A,

FRN

,

2.441

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

10/15/30

..................

United

States

1,250,000

1,251,553

e,p

Dryden

55

CLO

Ltd.

,

2018-55A

,

D

,

144A,

FRN

,

3.091

%

,

(

3-month

USD

LIBOR

+

2.85

%

),

4/15/31

..........................

United

States

2,000,000

1,936,254

e,p

Ellington

CLO

III

Ltd.

,

2018-3A

,

A1

,

144A,

FRN

,

1.874

%

,

(

3-month

USD

LIBOR

+

1.65

%

),

7/20/30

..........................

United

States

5,192,501

5,191,368

e

FirstKey

Homes

Trust

,

2020-SFR2

,

A

,

144A,

1.266

%

,

10/19/37

...

United

States

11,610,000

11,694,469

e,p

Galaxy

XXVII

CLO

Ltd.

,

2018-27A,

A,

144A,

FRN,

1.241%,

(3-month

USD

LIBOR

+

1.02%),

5/16/31

.....................................

United

States

1,000,000

1,001,201

2018-27A,

C,

144A,

FRN,

2.021%,

(3-month

USD

LIBOR

+

1.8%),

5/16/31

...........................................

United

States

4,000,000

3,983,000

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

84

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Asset-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

e,p

Gilbert

Park

CLO

Ltd.

,

2017-1A

,

B

,

144A,

FRN

,

1.841

%

,

(

3-month

USD

LIBOR

+

1.6

%

),

10/15/30

..........................

United

States

1,000,000

$

1,001,696

e,p

Halcyon

Loan

Advisors

Funding

Ltd.

,

2018-1A

,

A2

,

144A,

FRN

,

2.024

%

,

(

3-month

USD

LIBOR

+

1.8

%

),

7/21/31

.............

United

States

4,500,000

4,423,117

e,p

Harbor

Park

CLO

18-1

Ltd.

,

2018-1A

,

A2

,

144A,

FRN

,

1.624

%

,

(

3-month

USD

LIBOR

+

1.4

%

),

1/20/31

...................

United

States

657,895

658,514

e,p

Hayfin

US

XII

Ltd.

,

2018-9A

,

BR

,

144A,

FRN

,

2.018

%

,

(

3-month

USD

LIBOR

+

1.8

%

),

4/28/31

...........................

United

States

14,500,000

14,523,667

e,p

Highbridge

Loan

Management

Ltd.

,

2013-2A

,

BR

,

144A,

FRN

,

2.124

%

,

(

3-month

USD

LIBOR

+

1.9

%

),

10/20/29

............

United

States

700,000

699,125

e,p

Holland

Park

CLO

DAC

,

1A

,

A1RR

,

144A,

FRN

,

0.92

%

,

(

3-month

EURIBOR

+

0.92

%

),

11/14/32

..........................

Ireland

50,450,000

EUR

60,858,661

e,p

HPS

Loan

Management

Ltd.

,

13A-18,

A2,

144A,

FRN,

1.691%,

(3-month

USD

LIBOR

+

1.45%),

10/15/30

..........................................

United

States

8,600,000

8,591,681

13A-18,

C,

144A,

FRN,

2.391%,

(3-month

USD

LIBOR

+

2.15%),

10/15/30

..........................................

United

States

3,000,000

2,979,470

e,p

LCM

26

Ltd.

,

26A,

B,

144A,

FRN,

1.624%,

(3-month

USD

LIBOR

+

1.4%),

1/20/31

...........................................

United

States

2,000,000

1,974,812

26A,

C,

144A,

FRN,

2.024%,

(3-month

USD

LIBOR

+

1.8%),

1/20/31

...........................................

United

States

9,600,000

9,332,094

26A,

D,

144A,

FRN,

2.724%,

(3-month

USD

LIBOR

+

2.5%),

1/20/31

...........................................

United

States

600,000

573,511

e,p

LCM

XVIII

LP

,

18A,

BR,

144A,

FRN,

1.824%,

(3-month

USD

LIBOR

+

1.6%),

4/20/31

...........................................

United

States

1,090,000

1,088,911

18A,

CR,

144A,

FRN,

2.074%,

(3-month

USD

LIBOR

+

1.85%),

4/20/31

...........................................

United

States

2,000,000

1,989,751

e,p

Long

Point

Park

CLO

Ltd.

,

2017-1A,

A2,

144A,

FRN,

1.598%,

(3-month

USD

LIBOR

+

1.375%),

1/17/30

....................................

United

States

5,800,000

5,754,280

2017-1A,

B,

144A,

FRN,

1.923%,

(3-month

USD

LIBOR

+

1.7%),

1/17/30

...........................................

United

States

2,700,000

2,657,404

2017-1A,

C,

144A,

FRN,

2.623%,

(3-month

USD

LIBOR

+

2.4%),

1/17/30

...........................................

United

States

3,100,000

3,019,447

e,p

Madison

Park

Euro

Funding

VIII

DAC

,

8A,

ARN,

144A,

FRN,

0.95%,

(3-month

EURIBOR

+

0.95%),

4/15/32

...........................................

Ireland

41,450,000

EUR

50,244,513

8A,

BRN,

144A,

FRN,

1.7%,

(3-month

EURIBOR

+

1.7%),

4/15/32

Ireland

4,600,000

EUR

5,597,675

e,p

Madison

Park

Funding

XIII

Ltd.

,

2014-13A

,

DR2

,

144A,

FRN

,

3.073

%

,

(

3-month

USD

LIBOR

+

2.85

%

),

4/19/30

............

United

States

1,973,000

1,939,705

e,p

Madison

Park

Funding

XLII

Ltd.

,

13A,

B,

144A,

FRN,

1.718%,

(3-month

USD

LIBOR

+

1.5%),

11/21/30

..........................................

United

States

2,700,000

2,693,782

13A,

C,

144A,

FRN,

2.018%,

(3-month

USD

LIBOR

+

1.8%),

11/21/30

..........................................

United

States

3,753,500

3,707,718

13A,

D,

144A,

FRN,

2.918%,

(3-month

USD

LIBOR

+

2.7%),

11/21/30

..........................................

United

States

5,500,000

5,307,600

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

85

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Asset-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

e,p

Madison

Park

Funding

XXII

Ltd.

,

2016-22A

,

CR

,

144A,

FRN

,

2.241

%

,

(

3-month

USD

LIBOR

+

2

%

),

1/15/33

..............

United

States

7,790,000

$

7,664,611

e,p

Madison

Park

Funding

XXIX

Ltd.

,

2018-29A

,

C

,

144A,

FRN

,

2.423

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

10/18/30

..................

United

States

1,072,581

1,074,195

e,p

Madison

Park

Funding

XXVII

Ltd.

,

2018-27A

,

C

,

144A,

FRN

,

2.824

%

,

(

3-month

USD

LIBOR

+

2.6

%

),

4/20/30

.............

United

States

2,125,000

2,068,347

e,p

Madison

Park

Funding

XXXI

Ltd.

,

2018-31A,

B,

144A,

FRN,

1.918%,

(3-month

USD

LIBOR

+

1.7%),

1/23/31

...........................................

United

States

1,500,000

1,500,391

2018-31A,

C,

144A,

FRN,

2.368%,

(3-month

USD

LIBOR

+

2.15%),

1/23/31

.....................................

United

States

650,000

650,448

e,p

Magnetite

VII

Ltd.

,

2012-7A

,

CR2

,

144A,

FRN

,

2.291

%

,

(

3-month

USD

LIBOR

+

2.05

%

),

1/15/28

..........................

United

States

2,000,000

1,965,938

e,q

Mill

City

Mortgage

Loan

Trust

,

2018-4

,

A1B

,

144A,

FRN

,

3.5

%

,

4/25/66

...........................................

United

States

12,188,767

12,951,779

e,p

Neuberger

Berman

CLO

XVIII

Ltd.

,

2014-18A

,

A1BR

,

144A,

FRN

,

1.624

%

,

(

3-month

USD

LIBOR

+

1.4

%

),

10/21/30

............

United

States

1,700,000

1,681,862

e,p

Neuberger

Berman

CLO

XVI-S

Ltd.

,

2017-16SA,

C,

144A,

FRN,

1.841%,

(3-month

USD

LIBOR

+

1.6%),

1/15/28

......................................

United

States

2,350,000

2,330,325

2017-16SA,

D,

144A,

FRN,

2.741%,

(3-month

USD

LIBOR

+

2.5%),

1/15/28

......................................

United

States

650,000

638,464

e,p

Neuberger

Berman

Loan

Advisers

CLO

27

Ltd.

,

2018-27A

,

C

,

144A,

FRN

,

1.941

%

,

(

3-month

USD

LIBOR

+

1.7

%

),

1/15/30

........

United

States

4,900,000

4,854,016

e,p

Newark

BSL

CLO

2

Ltd.

,

2017-1A

,

B

,

144A,

FRN

,

2.568

%

,

(

3-month

USD

LIBOR

+

2.35

%

),

7/25/30

..........................

United

States

3,069,687

3,074,445

e,p

NZCG

Funding

Ltd.

,

2015-1A

,

A2R

,

144A,

FRN

,

1.783

%

,

(

3-month

USD

LIBOR

+

1.55

%

),

2/26/31

..........................

United

States

12,390,000

12,367,834

e,p

Octagon

Investment

Partners

18-R

Ltd.

,

2018-18A

,

C

,

144A,

FRN

,

2.923

%

,

(

3-month

USD

LIBOR

+

2.7

%

),

4/16/31

.............

United

States

9,050,000

8,801,594

e,p

Octagon

Investment

Partners

28

Ltd.

,

2016-1A

,

A2R

,

144A,

FRN

,

1.668

%

,

(

3-month

USD

LIBOR

+

1.45

%

),

10/24/30

...........

United

States

1,000,000

996,466

e,p

Octagon

Investment

Partners

31

LLC

,

2017-1A

,

C

,

144A,

FRN

,

2.624

%

,

(

3-month

USD

LIBOR

+

2.4

%

),

7/20/30

.............

United

States

1,707,068

1,709,794

e,p

Octagon

Investment

Partners

33

Ltd.

,

2017-1A,

A2,

144A,

FRN,

1.724%,

(3-month

USD

LIBOR

+

1.5%),

1/20/31

...........................................

United

States

400,000

399,000

2017-1A,

C,

144A,

FRN,

2.974%,

(3-month

USD

LIBOR

+

2.75%),

1/20/31

...........................................

United

States

2,800,000

2,709,959

e,p

Octagon

Investment

Partners

35

Ltd.

,

2018-1A,

A1B,

144A,

FRN,

1.324%,

(3-month

USD

LIBOR

+

1.1%),

1/20/31

......................................

United

States

3,325,000

3,280,680

2018-1A,

B,

144A,

FRN,

1.924%,

(3-month

USD

LIBOR

+

1.7%),

1/20/31

...........................................

United

States

450,000

441,837

e,p

Octagon

Investment

Partners

36

Ltd.

,

2018-1A,

A1,

144A,

FRN,

1.211%,

(3-month

USD

LIBOR

+

0.97%),

4/15/31

...........................................

United

States

18,000,000

17,979,688

2018-1A,

A2,

144A,

FRN,

1.441%,

(3-month

USD

LIBOR

+

1.2%),

4/15/31

...........................................

United

States

8,500,000

8,281,747

e,p

Octagon

Investment

Partners

37

Ltd.

,

2018-2A

,

C

,

144A,

FRN

,

3.068

%

,

(

3-month

USD

LIBOR

+

2.85

%

),

7/25/30

............

United

States

2,000,000

1,945,783

e,p

Octagon

Investment

Partners

38

Ltd.

,

2018-1A

,

C

,

144A,

FRN

,

3.174

%

,

(

3-month

USD

LIBOR

+

2.95

%

),

7/20/30

............

United

States

4,000,000

3,894,387

e,p

Octagon

Investment

Partners

XVII

Ltd.

,

2013-1A,

BR2,

144A,

FRN,

1.618%,

(3-month

USD

LIBOR

+

1.4%),

1/25/31

......................................

United

States

4,020,000

4,001,910

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

86

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Asset-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

e,p

Octagon

Investment

Partners

XVII

Ltd.,

(continued)

2013-1A,

CR2,

144A,

FRN,

1.918%,

(3-month

USD

LIBOR

+

1.7%),

1/25/31

......................................

United

States

5,250,000

$

5,092,430

e,p

Octagon

Investment

Partners

XXIII

Ltd.

,

2015-1A

,

BR

,

144A,

FRN

,

1.441

%

,

(

3-month

USD

LIBOR

+

1.2

%

),

7/15/27

.............

United

States

1,170,000

1,162,405

e,p

Octagon

Loan

Funding

Ltd.

,

2014-1A

,

CRR

,

144A,

FRN

,

2.42

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

11/18/31

..................

United

States

750,000

748,515

e,q

Prosper

Pass-Thru

Trust

III

,

2020-PT1,

A,

144A,

FRN,

8.796%,

3/15/26

.................

United

States

3,642,749

3,589,468

2020-PT2,

A,

144A,

FRN,

9.444%,

4/15/26

.................

United

States

4,422,118

4,349,005

2020-PT3,

A,

144A,

FRN,

7.183%,

5/15/26

.................

United

States

1,426,382

1,439,879

e,p

Race

Point

X

CLO

Ltd.

,

2016-10A

,

B1R

,

144A,

FRN

,

1.868

%

,

(

3-month

USD

LIBOR

+

1.65

%

),

7/25/31

..................

United

States

3,600,000

3,595,501

e,p

Sound

Point

CLO

V-R

Ltd.

,

2014-1RA

,

D

,

144A,

FRN

,

3.323

%

,

(

3-month

USD

LIBOR

+

3.1

%

),

7/18/31

...................

United

States

5,780,000

5,554,998

e,p

Strata

CLO

I

Ltd.

,

2018-1A

,

B

,

144A,

FRN

,

2.441

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

1/15/31

...............................

United

States

11,000,000

10,885,155

e,p

TCI-Flatiron

CLO

Ltd.

,

2017-1A,

B,

144A,

FRN,

1.782%,

(3-month

USD

LIBOR

+

1.56%),

11/18/30

..........................................

United

States

3,500,000

3,503,375

2017-1A,

C,

144A,

FRN,

2.072%,

(3-month

USD

LIBOR

+

1.85%),

11/18/30

..........................................

United

States

2,800,000

2,777,483

e,q

Towd

Point

Mortgage

Trust

,

2017-1,

A1,

144A,

FRN,

2.75%,

10/25/56

..................

United

States

4,942,409

5,036,863

2017-1,

A2,

144A,

FRN,

3.5%,

10/25/56

...................

United

States

8,862,000

9,510,457

2017-2,

A1,

144A,

FRN,

2.75%,

4/25/57

...................

United

States

2,328,675

2,376,024

2017-4,

A1,

144A,

FRN,

2.75%,

6/25/57

...................

United

States

—

—

e

Upgrade

Master

Pass-Thru

Trust

,

q

2019-PT1,

A,

144A,

FRN,

11.523%,

6/15/25

................

United

States

1,559,738

1,406,897

2019-PT2,

A,

144A,

1.1%,

2/15/26

.......................

United

States

3,126,522

3,084,714

e,p

Voya

CLO

Ltd.

,

2013-2A,

CR,

144A,

FRN,

2.968%,

(3-month

USD

LIBOR

+

2.75%),

4/25/31

.....................................

United

States

1,650,000

1,581,951

2014-1A,

BR2,

144A,

FRN,

2.123%,

(3-month

USD

LIBOR

+

1.9%),

4/18/31

......................................

United

States

1,000,000

991,279

2014-1A,

CR2,

144A,

FRN,

3.023%,

(3-month

USD

LIBOR

+

2.8%),

4/18/31

......................................

United

States

3,750,000

3,619,415

2016-3A,

CR,

144A,

FRN,

3.473%,

(3-month

USD

LIBOR

+

3.25%),

10/18/31

....................................

United

States

2,547,170

2,510,317

2017-3A,

B,

144A,

FRN,

2.574%,

(3-month

USD

LIBOR

+

2.35%),

7/20/30

...........................................

United

States

3,091,704

3,096,303

2018-2A,

A2,

144A,

FRN,

1.491%,

(3-month

USD

LIBOR

+

1.25%),

7/15/31

.....................................

United

States

1,500,000

1,474,285

2018-2A,

C1,

144A,

FRN,

2.091%,

(3-month

USD

LIBOR

+

1.85%),

7/15/31

.....................................

United

States

700,000

692,720

e,p

Webster

Park

CLO

Ltd.

,

2015-1A

,

BR

,

144A,

FRN

,

2.024

%

,

(

3-month

USD

LIBOR

+

1.8

%

),

7/20/30

...........................

United

States

2,000,000

1,979,017

641,909,923

a

a

a

a

a

a

Road

&

Rail

0.0%

†

Union

Pacific

Railroad

Co.

Pass-Through

Trust

,

2005-1

,

5.082

%

,

1/02/29

...........................................

United

States

69,403

78,684

Total

Asset-Backed

Securities

(Cost

$637,753,214)

..............................

651,692,013

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

87

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Commercial

Mortgage-Backed

Securities

0.3%

Diversified

Financial

Services

0.3%

q

Commercial

Mortgage

Trust

,

2006-GG7

,

AJ

,

FRN

,

6.214

%

,

7/10/38

United

States

1,589,388

$

1,430,846

e,p

DBCG

Mortgage

Trust

,

2017-BBG

,

A

,

144A,

FRN

,

0.826

%

,

(

1-month

USD

LIBOR

+

0.7

%

),

6/15/34

...........................

United

States

9,840,000

9,856,535

e,q

Eleven

Madison

Mortgage

Trust

,

2015-11MD

,

A

,

144A,

FRN

,

3.555

%

,

9/10/35

.....................................

United

States

3,255,000

3,603,613

14,890,994

a

a

a

a

a

a

Thrifts

&

Mortgage

Finance

0.0%

†

p

FNMA

,

2005-122

,

FN

,

FRN

,

0.48

%

,

(

1-month

USD

LIBOR

+

0.35

%

),

1/25/36

...........................................

United

States

380,188

367,649

a

Weyerhaeuser

Mortgage

Co.

of

Texas

,

1984-A

,

7.43

%

,

1/01/24

...

United

States

7,197

7,197

374,846

a

a

a

a

a

a

Total

Commercial

Mortgage-Backed

Securities

(Cost

$15,048,817)

................

15,265,840

Mortgage-Backed

Securities

18.3%

r

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Adjustable

Rate

0.0%

†

FHLMC,

1.753%,

(COFI

11th

District

+/-

MBS

Margin),

11/01/27

..

United

States

950,127

954,208

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Fixed

Rate

0.5%

FHLMC

Gold

Pools,

15

Year,

5.5%,

11/01/22

.................

United

States

27,633

27,863

FHLMC

Gold

Pools,

15

Year,

6%,

10/01/21

-

9/01/22

...........

United

States

41,362

42,209

FHLMC

Gold

Pools,

30

Year,

4.5%,

3/01/39

..................

United

States

918,051

1,022,818

FHLMC

Gold

Pools,

30

Year,

5%,

8/01/33

-

2/01/39

............

United

States

6,088,365

7,050,408

FHLMC

Gold

Pools,

30

Year,

5.5%,

1/01/35

-

12/01/37

.........

United

States

472,476

550,147

FHLMC

Gold

Pools,

30

Year,

6%,

5/01/33

-

4/01/38

............

United

States

680,157

807,033

FHLMC

Gold

Pools,

30

Year,

6.5%,

8/01/25

-

3/01/39

..........

United

States

598,194

692,684

FHLMC

Gold

Pools,

30

Year,

7%,

1/01/28

-

7/01/32

............

United

States

42,650

48,546

FHLMC

Gold

Pools,

30

Year,

7.5%,

3/01/32

..................

United

States

9,030

10,849

FHLMC

Gold

Pools,

30

Year,

8%,

2/01/30

...................

United

States

12,758

14,867

FHLMC

Gold

Pools,

30

Year,

8.5%,

10/01/24

-

8/01/30

.........

United

States

3,236

3,605

FHLMC

Pool,

15

Year,

2%,

10/01/35

-

1/01/36

................

United

States

15,928,114

16,663,425

FHLMC

Pool,

15

Year,

2.5%,

11/01/35

......................

United

States

656,291

689,429

FHLMC

Pool,

30

Year,

4%,

1/01/45

-

3/01/48

.................

United

States

930,212

1,019,405

28,643,288

r

Federal

National

Mortgage

Association

(FNMA)

Adjustable

Rate

0.1%

FNMA,

1.773%

-

4.104%,

(COFI

11th

District

+/-

MBS

Margin),

12/01/24

-

3/01/37

...................................

United

States

2,496,492

2,575,887

2,575,887

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

15.6%

FNMA,

15

Year,

2%,

8/01/30

-

12/01/35

.....................

United

States

9,782,359

10,238,257

FNMA,

15

Year,

2.5%,

1/01/36

...........................

United

States

2,460,073

2,587,257

FNMA,

15

Year,

5.5%,

12/01/22

-

12/01/23

..................

United

States

34,654

35,617

FNMA,

15

Year,

6%,

9/01/22

.............................

United

States

19,660

19,919

FNMA,

30

Year,

3%,

9/01/48

.............................

United

States

23,512,315

25,097,748

FNMA,

30

Year,

3%,

11/01/48

............................

United

States

57,236,167

61,035,186

FNMA,

30

Year,

3%,

9/01/50

.............................

United

States

28,134,559

29,675,347

FNMA,

30

Year,

3.5%,

5/01/47

...........................

United

States

2,379,863

2,597,067

FNMA,

30

Year,

5%,

6/01/36

-

5/01/39

......................

United

States

1,215,252

1,408,519

FNMA,

30

Year,

5.5%,

6/01/33

-

8/01/37

....................

United

States

3,862,558

4,447,521

FNMA,

30

Year,

6%,

9/01/32

-

9/01/38

......................

United

States

4,157,100

4,990,811

FNMA,

30

Year,

6.5%,

8/01/28

-

5/01/37

....................

United

States

140,614

160,906

FNMA,

30

Year,

7%,

11/01/25

............................

United

States

2,284

2,292

FNMA,

30

Year,

7.5%,

1/01/30

...........................

United

States

7,449

8,788

FNMA,

30

Year,

8.5%,

4/01/30

-

5/01/32

....................

United

States

39,418

47,275

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

88

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Mortgage-Backed

Securities

(continued)

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

(continued)

FNMA,

30

Year,

9%,

5/01/27

.............................

United

States

18,035

$

18,538

s

FNMA,

Single-family,

15

Year,

1.5%,

2/25/36

.................

United

States

47,793,000

49,010,228

s

FNMA,

Single-family,

15

Year,

2%,

2/25/36

..................

United

States

140,904,000

147,228,166

s

FNMA,

Single-family,

30

Year,

2%,

2/25/51

..................

United

States

158,563,000

163,753,462

s

FNMA,

Single-family,

30

Year,

2.5%,

2/25/51

.................

United

States

310,599,000

327,305,831

829,668,735

r

Government

National

Mortgage

Association

(GNMA)

Adjustable

Rate

0.0%

†

GNMA

II,

2.125%

-

3%,

(1-year

CMT

T-Note

+/-

MBS

Margin),

1/20/23

-

10/20/26

...................................

United

States

16,801

17,184

17,184

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

2.1%

GNMA

I,

30

Year,

7%,

10/15/27

-

6/15/31

....................

United

States

13,788

16,505

GNMA

I,

Single-family,

30

Year,

6%,

1/15/39

.................

United

States

87,094

102,807

GNMA

I,

Single-family,

30

Year,

6.5%,

10/15/31

-

7/15/38

........

United

States

14,949

17,031

GNMA

I,

Single-family,

30

Year,

7%,

3/15/28

-

4/15/28

..........

United

States

6,393

6,593

GNMA

I,

Single-family,

30

Year,

7.5%,

2/15/22

-

5/15/26

........

United

States

16,068

16,592

GNMA

I,

Single-family,

30

Year,

9%,

9/15/25

.................

United

States

31

32

GNMA

II,

Single-family,

30

Year,

2%,

10/20/50

................

United

States

48,326,417

50,213,437

GNMA

II,

Single-family,

30

Year,

2.5%,

10/20/50

..............

United

States

45,317,256

47,737,227

GNMA

II,

Single-family,

30

Year,

2.5%,

8/20/50

...............

United

States

4,166,394

4,388,177

GNMA

II,

Single-family,

30

Year,

3%,

11/20/50

................

United

States

2,446,340

2,591,590

GNMA

II,

Single-family,

30

Year,

4.5%,

9/20/50

-

11/20/50

.......

United

States

6,341,945

6,895,141

GNMA

II,

Single-family,

30

Year,

6%,

5/20/31

.................

United

States

2,224

2,529

GNMA

II,

Single-family,

30

Year,

6.5%,

3/20/28

-

7/20/38

........

United

States

235,902

280,600

GNMA

II,

Single-family,

30

Year,

7.5%,

8/20/30

-

1/20/33

........

United

States

28,361

32,752

112,301,013

Total

Mortgage-Backed

Securities

(Cost

$962,580,033)

...........................

974,160,315

Municipal

Bonds

4.3%

California

1.1%

California

Health

Facilities

Financing

Authority

,

State

of

California

Personal

Income

Tax,

Revenue,

Senior

Lien,

2019,

2.934%,

6/01/32

..............................

United

States

6,810,000

7,336,005

State

of

California

Personal

Income

Tax,

Revenue,

Senior

Lien,

2019,

2.984%,

6/01/33

..............................

United

States

5,870,000

6,296,984

State

of

California

Personal

Income

Tax,

Revenue,

Senior

Lien,

2019,

3.034%,

6/01/34

..............................

United

States

4,445,000

4,715,789

City

of

San

Francisco,

Public

Utilities

Commission

Water,

Revenue,

2019

A,

Refunding,

3.473%,

11/01/43

.....................

United

States

2,640,000

2,845,682

Foothill-Eastern

Transportation

Corridor

Agency,

Revenue,

2019A,

Refunding,

4.094%,

1/15/49

............................

United

States

3,470,000

3,770,710

Gilroy

Unified

School

District,

GO,

2019,

Refunding,

3.364%,

8/01/47

United

States

7,220,000

7,566,632

Los

Angeles

Community

College

District,

GO,

2020,

Refunding,

2.106%,

8/01/32

.....................................

United

States

3,050,000

3,161,264

San

Jose

Redevelopment

Agency

Successor

Agency,

Tax

Allocation,

Senior

Lien,

2017A-T,

Refunding,

3.226%,

8/01/27

...........

United

States

6,150,000

6,981,296

University

of

California,

Revenue,

2015

J,

Refunding,

4.131%,

5/15/45

...........................................

United

States

10,750,000

13,288,183

55,962,545

Colorado

0.1%

Metro

Wastewater

Reclamation

District,

Revenue,

2019

B,

Refunding,

3.158%,

4/01/41

............................

United

States

5,600,000

5,930,624

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

89

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Municipal

Bonds

(continued)

Florida

0.1%

County

of

Broward,

Airport

System,

Revenue,

2019C,

Refunding,

3.477%,

10/01/43

....................................

United

States

7,145,000

$

7,395,004

Hawaii

0.0%

†

City

&

County

Honolulu,

Wastewater

System,

Revenue,

2019

B,

Refunding,

2.585%,

7/01/28

............................

United

States

1,350,000

1,465,817

Illinois

0.2%

Chicago

Transit

Authority

Sales

&

Transfer

Tax

Receipts,

Revenue,

2008A,

6.899%,

12/01/40

..............................

United

States

800,000

1,172,120

State

of

Illinois,

GO,

2003,

5.1%,

6/01/33

...................

United

States

8,900,000

9,967,199

11,139,319

Massachusetts

0.2%

Massachusetts

School

Building

Authority,

Revenue,

2019

B,

Refunding,

3.395%,

10/15/40

...........................

United

States

6,760,000

7,146,875

Massachusetts

State

College

Building

Authority,

Revenue,

2019

C,

Refunding,

3.373%,

5/01/43

............................

United

States

5,900,000

5,984,016

13,130,891

Minnesota

0.1%

State

of

Minnesota,

GO,

2013F,

Refunding,

4%,

10/01/24

.......

United

States

5,760,000

6,353,683

Missouri

0.2%

Metropolitan

St.

Louis

Sewer

District,

Revenue,

2019

C,

Refunding,

3.259%,

5/01/45

.....................................

United

States

7,640,000

8,165,479

New

Jersey

0.3%

New

Jersey

Transportation

Trust

Fund

Authority,

Revenue,

2019

B,

Refunding,

4.131%,

6/15/42

............................

United

States

4,060,000

4,541,922

State

of

New

Jersey,

GO,

2020

A,

3%,

6/01/32

...............

United

States

8,745,000

10,091,030

14,632,952

New

York

0.4%

Metropolitan

Transportation

Authority,

Revenue,

2020

E,

Refunding,

4%,

11/15/45

.......................................

United

States

6,715,000

7,722,787

New

York

State

Dormitory

Authority,

State

University

of

New

York,

Revenue,

2019B,

Refunding,

3.142%,

7/01/43

..............

United

States

3,605,000

3,748,083

Port

Authority

of

New

York

&

New

Jersey

,

Revenue,

191,

4.823%,

6/01/45

.........................

United

States

4,570,000

5,256,505

Revenue,

192,

4.81%,

10/15/65

.........................

United

States

5,000,000

6,889,100

23,616,475

Ohio

0.4%

Greenville

City

School

District,

GO,

2019,

Refunding,

3.541%,

1/01/51

...........................................

United

States

16,585,000

16,847,706

State

of

Ohio,

Cleveland

Clinic

Health

System

Obligated

Group,

Revenue,

2019G,

Refunding,

3.276%,

1/01/42

..............

United

States

2,265,000

2,555,962

19,403,668

Oregon

0.1%

State

of

Oregon,

Department

of

Transportation,

Revenue,

Senior

Lien,

2019

B,

Refunding,

3.168%,

11/15/38

................

United

States

4,510,000

4,881,985

Pennsylvania

0.1%

University

of

Pittsburgh-of

the

Commonwealth

System

of

Higher

Education,

Revenue,

2017

C,

Refunding,

3.005%,

9/15/41

.....

United

States

6,315,000

6,755,471

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

90

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Municipal

Bonds

(continued)

Texas

0.8%

City

of

Austin,

Electric

Utility,

Revenue,

2008,

Refunding,

AGMC

Insured,

6.262%,

11/15/32

.............................

United

States

12,790,000

$

16,539,260

Grand

Parkway

Transportation

Corp.,

Revenue,

2020B,

Refunding,

3.236%,

10/01/52

....................................

United

States

5,800,000

6,097,076

Permanent

University

Fund

-

Texas

A&M

University

System,

Revenue,

2019,

3.1%,

7/01/49

..........................

United

States

9,020,000

9,662,134

State

of

Texas,

GO,

2019,

Refunding,

3.211%,

4/01/44

.........

United

States

6,760,000

7,275,585

Texas

State

University

System

,

Revenue,

2019

B,

Refunding,

2.938%,

3/15/33

..............

United

States

2,655,000

2,883,277

Revenue,

2019

B,

Refunding,

3.289%,

3/15/40

..............

United

States

2,255,000

2,403,086

44,860,418

Utah

0.2%

Salt

Lake

City

Corp.,

Revenue,

2019B,

Refunding,

3.102%,

4/01/38

United

States

3,155,000

3,343,385

Utah

Transit

Authority,

Revenue,

Senior

Lien,

2019

B,

Refunding,

3.443%,

12/15/42

....................................

United

States

4,510,000

4,763,146

8,106,531

Total

Municipal

Bonds

(Cost

$214,988,596)

.....................................

231,800,862

Residential

Mortgage-Backed

Securities

8.1%

Capital

Markets

0.0%

†

p

Merrill

Lynch

Mortgage

Investors

Trust

,

2003-A

,

1A

,

FRN

,

0.87

%

,

(

1-month

USD

LIBOR

+

0.74

%

),

3/25/28

..................

United

States

403,213

397,294

Diversified

Financial

Services

1.0%

e

BRAVO

Residential

Funding

Trust

,

2019-1,

A1C,

144A,

3.5%,

3/25/58

.......................

United

States

10,096,673

10,441,804

q

2019-2,

A3,

144A,

FRN,

3.5%,

10/25/44

...................

United

States

9,150,405

9,608,866

e,q

CIM

Trust

,

2018-INV1,

A4,

144A,

FRN,

4%,

8/25/48

..................

United

States

4,879,319

5,035,823

2019-INV1,

A1,

144A,

FRN,

4%,

2/25/49

..................

United

States

5,168,004

5,333,736

2019-INV2,

A3,

144A,

FRN,

4%,

5/25/49

..................

United

States

8,675,052

8,966,154

e,q

Citigroup

Mortgage

Loan

Trust

,

2013-A

,

A

,

144A,

FRN

,

3

%

,

5/25/42

United

States

303,381

305,118

Credit

Suisse

First

Boston

Mortgage

Securities

Corp.

,

2004-6

,

3A1

,

5

%

,

9/25/19

........................................

United

States

114,842

97,283

e,q

Provident

Funding

Mortgage

Trust

,

2019-1,

A2,

144A,

FRN,

3%,

12/25/49

....................

United

States

4,837,295

4,931,535

2020-1,

A3,

144A,

FRN,

3%,

2/25/50

.....................

United

States

5,643,980

5,682,808

50,403,127

a

a

a

a

a

a

Thrifts

&

Mortgage

Finance

7.1%

p

FHLMC

Structured

Agency

Credit

Risk

Debt

Notes

,

2014-DN3,

M3,

FRN,

4.13%,

(1-month

USD

LIBOR

+

4%),

8/25/24

United

States

8,048,845

8,263,355

2014-DN4,

M3,

FRN,

4.68%,

(1-month

USD

LIBOR

+

4.55%),

10/25/24

..........................................

United

States

4,179,838

4,302,330

2014-HQ1,

M3,

FRN,

4.23%,

(1-month

USD

LIBOR

+

4.1%),

8/25/24

...........................................

United

States

1,005,461

1,019,975

2015-DN1,

M3,

FRN,

4.28%,

(1-month

USD

LIBOR

+

4.15%),

1/25/25

...........................................

United

States

1,710,077

1,725,543

2015-DNA2,

M3,

FRN,

4.03%,

(1-month

USD

LIBOR

+

3.9%),

12/25/27

..........................................

United

States

14,513,513

14,742,198

2015-DNA3,

M3,

FRN,

4.83%,

(1-month

USD

LIBOR

+

4.7%),

4/25/28

...........................................

United

States

3,094,938

3,236,114

2015-HQ2,

M3,

FRN,

3.38%,

(1-month

USD

LIBOR

+

3.25%),

5/25/25

...........................................

United

States

4,056,194

4,146,413

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

91

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Residential

Mortgage-Backed

Securities

(continued)

Thrifts

&

Mortgage

Finance

(continued)

p

FHLMC

Structured

Agency

Credit

Risk

Debt

Notes,

(continued)

2016-DNA1,

M3,

FRN,

5.68%,

(1-month

USD

LIBOR

+

5.55%),

7/25/28

...........................................

United

States

17,906,882

$

18,855,220

2016-DNA2,

M3,

FRN,

4.78%,

(1-month

USD

LIBOR

+

4.65%),

10/25/28

..........................................

United

States

13,883,255

14,558,434

2016-HQA2,

M3,

FRN,

5.28%,

(1-month

USD

LIBOR

+

5.15%),

11/25/28

..........................................

United

States

23,058,935

24,044,790

2016-HQA3,

M2,

FRN,

1.48%,

(1-month

USD

LIBOR

+

1.35%),

3/25/29

...........................................

United

States

144,236

144,523

2017-DNA1,

M2,

FRN,

3.38%,

(1-month

USD

LIBOR

+

3.25%),

7/25/29

...........................................

United

States

14,156,900

14,655,958

2017-DNA2,

M2,

FRN,

3.58%,

(1-month

USD

LIBOR

+

3.45%),

10/25/29

..........................................

United

States

26,327,007

27,299,784

2017-DNA3,

M2,

FRN,

2.63%,

(1-month

USD

LIBOR

+

2.5%),

3/25/30

...........................................

United

States

13,500,000

13,801,833

2017-HQA1,

M2,

FRN,

3.68%,

(1-month

USD

LIBOR

+

3.55%),

8/25/29

...........................................

United

States

18,770,732

19,387,054

2017-HQA2,

M2,

FRN,

2.78%,

(1-month

USD

LIBOR

+

2.65%),

12/25/29

..........................................

United

States

7,177,769

7,290,197

2017-HQA3,

M2,

FRN,

2.48%,

(1-month

USD

LIBOR

+

2.35%),

4/25/30

...........................................

United

States

7,208,227

7,340,987

p

FNMA

Connecticut

Avenue

Securities

,

2013-C01,

M2,

FRN,

5.38%,

(1-month

USD

LIBOR

+

5.25%),

10/25/23

..........................................

United

States

6,469,656

6,709,421

2014-C02,

1M2,

FRN,

2.73%,

(1-month

USD

LIBOR

+

2.6%),

5/25/24

...........................................

United

States

15,360,727

15,179,366

2014-C02,

2M2,

FRN,

2.73%,

(1-month

USD

LIBOR

+

2.6%),

5/25/24

...........................................

United

States

4,891,683

4,961,164

2014-C03,

1M2,

FRN,

3.13%,

(1-month

USD

LIBOR

+

3%),

7/25/24

...........................................

United

States

17,931,350

17,753,670

2014-C03,

2M2,

FRN,

3.03%,

(1-month

USD

LIBOR

+

2.9%),

7/25/24

...........................................

United

States

1,638,753

1,662,828

2014-C04,

1M2,

FRN,

5.03%,

(1-month

USD

LIBOR

+

4.9%),

11/25/24

..........................................

United

States

13,320,505

13,774,822

2014-C04,

2M2,

FRN,

5.13%,

(1-month

USD

LIBOR

+

5%),

11/25/24

..........................................

United

States

1,824,203

1,867,773

2015-C01,

1M2,

FRN,

4.43%,

(1-month

USD

LIBOR

+

4.3%),

2/25/25

...........................................

United

States

1,775,169

1,822,100

2015-C01,

2M2,

FRN,

4.68%,

(1-month

USD

LIBOR

+

4.55%),

2/25/25

...........................................

United

States

3,561,572

3,603,969

2015-C02,

1M2,

FRN,

4.13%,

(1-month

USD

LIBOR

+

4%),

5/25/25

...........................................

United

States

8,734,987

8,960,787

2015-C02,

2M2,

FRN,

4.13%,

(1-month

USD

LIBOR

+

4%),

5/25/25

...........................................

United

States

1,575,414

1,606,594

2015-C03,

1M2,

FRN,

5.13%,

(1-month

USD

LIBOR

+

5%),

7/25/25

...........................................

United

States

5,748,359

5,918,277

2015-C03,

2M2,

FRN,

5.13%,

(1-month

USD

LIBOR

+

5%),

7/25/25

...........................................

United

States

1,637,699

1,675,971

2016-C04,

1M2,

FRN,

4.38%,

(1-month

USD

LIBOR

+

4.25%),

1/25/29

...........................................

United

States

16,213,128

16,939,928

2016-C05,

2M2,

FRN,

4.58%,

(1-month

USD

LIBOR

+

4.45%),

1/25/29

...........................................

United

States

10,941,090

11,398,940

2016-C07,

2M2,

FRN,

4.48%,

(1-month

USD

LIBOR

+

4.35%),

5/25/29

...........................................

United

States

7,846,652

8,206,221

2017-C01,

1M2,

FRN,

3.68%,

(1-month

USD

LIBOR

+

3.55%),

7/25/29

...........................................

United

States

11,513,866

11,928,280

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

92

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Residential

Mortgage-Backed

Securities

(continued)

Thrifts

&

Mortgage

Finance

(continued)

p

FNMA

Connecticut

Avenue

Securities,

(continued)

2017-C02,

2M2,

FRN,

3.78%,

(1-month

USD

LIBOR

+

3.65%),

9/25/29

...........................................

United

States

8,002,716

$

8,259,943

2017-C03,

1M2,

FRN,

3.13%,

(1-month

USD

LIBOR

+

3%),

10/25/29

..........................................

United

States

25,087,839

25,687,664

2017-C04,

2M2,

FRN,

2.98%,

(1-month

USD

LIBOR

+

2.85%),

11/25/29

..........................................

United

States

5,272,832

5,382,799

2017-C05,

1M2,

FRN,

2.33%,

(1-month

USD

LIBOR

+

2.2%),

1/25/30

...........................................

United

States

20,637,922

20,844,079

378,959,304

a

a

a

a

a

a

Total

Residential

Mortgage-Backed

Securities

(Cost

$445,466,782)

................

429,759,725

Shares/Units

Escrows

and

Litigation

Trusts

0.0%

†

a,b

Millennium

Corporate

Claim

Trust,

Escrow

Account

............

United

States

73,753

—

a,b

Millennium

Lender

Claim

Trust,

Escrow

Account

..............

United

States

73,753

—

a,b

Motors

Liquidation

Co.,

Escrow

Account,

Convertible

Preferred,

C

.

United

States

43,500

—

a,b

Remington

Outdoor

Co.,

Inc.,

Litigation

Units

.................

United

States

4,897

—

b

Sanchez

Energy

Corp.,

Escrow

Account

....................

United

States

3,000,000

30,000

Total

Escrows

and

Litigation

Trusts

(Cost

$2,814,454)

...........................

30,000

Total

Long

Term

Investments

(Cost

$5,622,740,037)

.............................

5,772,239,157

a

Number

of

Contracts

Notional

Amount

#

a

a

aa

Options

Purchased

0.0%

†

Puts

-

Over-the-Counter

Interest

Rate

Swaptions

0.0%

Receive

Floating

3-month

USD

LIBOR,

Pay

Fixed

1.24%,

Counterparty

CITI,

Expires

5/10/21

.......................

1

258,200,000

2,565,779

Total

Options

Purchased

(Cost

$2,272,160)

.....................................

2,565,779

Short

Term

Investments

4.1%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

4.1%

d,t

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

........

United

States

217,289,613

217,289,613

Total

Money

Market

Funds

(Cost

$217,289,613)

.................................

217,289,613

Total

Short

Term

Investments

(Cost

$217,289,613

)

...............................

217,289,613

a

Total

Investments

(Cost

$5,842,301,810)

112.7%

.................................

$5,992,094,549

Other

Assets,

less

Liabilities

(12.7)%

..........................................

(677,876,367)

Net

Assets

100.0%

...........................................................

$5,314,218,182

#

Notional

amount

is

the

number

of

units

specified

in

the

contract,

and

can

include

currency

units,

bushels,

shares,

pounds,

barrels

or

other

units.

Currency

units

are

stated

in

U.S.

dollars

unless

otherwise

indicated.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

93

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Fair

valued

using

significant

unobservable

inputs.

See

Note

11

regarding

fair

value

measurements.

b

Non-income

producing.

c

See

Note

6

regarding

restricted

securities.

d

See

Note

9

regarding

investments

in

affiliated

management

investment

companies.

e

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

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.

Regulation

S

securities

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.

At

January

31,

2021,

the

aggregate

value

of

these

securities

was

$1,203,129,549,

representing

22.6%

of

net

assets.

f

Perpetual

security

with

no

stated

maturity

date.

g

Defaulted

security

or

security

for

which

income

has

been

deemed

uncollectible.

h

Income

may

be

received

in

additional

securities

and/or

cash.

i

The

coupon

rate

shown

represents

the

rate

at

period

end.

j

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

k

A

portion

or

all

of

the

security

represents

an

unsettled

loan

commitment.

The

coupon

rate

is

to-be

determined

(TBD)

at

the

time

of

the

settlement

and

will

be

based

upon

a

reference

index/floor

plus

a

spread.

l

See

Note

7

regarding

unfunded

loan

commitments.

m

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

n

The

principal

represents

the

notional

amount.

See

Note

3

regarding

value

recovery

instruments.

o

Principal

amount

of

security

is

adjusted

for

inflation.

p

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

q

Adjustable

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.

r

Adjustable

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).

s

Security

purchased

on

a

to-be-announced

(TBA)

basis.

t

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

94

At

January

31,

2021,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

3. 

At

January

31,

2021,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

3

. 

Futures

Contracts

Description

Type

Number

of

Contracts

Notional

Amount

*

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Interest

rate

contracts

Australia

3

Year

Bonds

........................

Long

1,265

$

113,513,092

3/15/21

$

74,897

Canada

10

Year

Bonds

........................

Long

1,157

133,561,250

3/22/21

(992,126)

U.S.

Treasury

10

Year

Notes

....................

Long

630

86,329,688

3/22/21

(591,488)

U.S.

Treasury

10

Year

Ultra

Notes

................

Short

1,695

260,738,672

3/22/21

4,965,697

U.S.

Treasury

2

Year

Notes

.....................

Long

1,477

326,382,382

3/31/21

266,714

U.S.

Treasury

5

Year

Notes

.....................

Long

3,764

473,793,500

3/31/21

(278,653)

U.S.

Treasury

Long

Bonds

.....................

Long

649

109,498,469

3/22/21

(3,448,734)

U.S.

Treasury

Ultra

Bonds

......................

Long

599

122,626,531

3/22/21

(5,897,287)

Total

Futures

Contracts

......................................................................

$(5,900,980)

*

As

of

period

end.

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

Japanese

Yen

......

JPHQ

Sell

5,257,284,000

68,000,000

SGD

2/04/21

$

989,528

$

—

Singapore

Dollar

....

JPHQ

Sell

68,000,000

5,230,560,000

JPY

2/04/21

—

(1,244,667)

Canadian

Dollar

....

JPHQ

Buy

14,950,000

11,695,589

3/09/21

—

(186)

Canadian

Dollar

....

JPHQ

Sell

50,180,000

38,172,759

3/09/21

—

(1,083,116)

Euro

.............

DBAB

Sell

2,178,384

2,582,117

3/09/21

—

(63,311)

Euro

.............

JPHQ

Sell

2,550,000

3,022,823

3/09/21

—

(73,895)

South

Korean

Won

..

JPHQ

Buy

14,000,000,000

12,800,585

3/10/21

—

(281,155)

South

Korean

Won

..

JPHQ

Sell

14,000,000,000

11,820,131

3/10/21

—

(699,299)

Turkish

Lira

........

JPHQ

Buy

72,700,000

8,826,029

4/06/21

855,678

—

Singapore

Dollar

....

JPHQ

Buy

68,000,000

51,330,440

5/20/21

—

(149,224)

Singapore

Dollar

....

JPHQ

Sell

68,000,000

50,722,422

5/20/21

—

(458,794)

Indonesian

Rupiah

..

DBAB

Buy

139,844,100,000

9,718,279

6/02/21

127,025

—

Indonesian

Rupiah

..

DBAB

Sell

42,700,000,000

2,976,751

6/02/21

—

(29,415)

Indonesian

Rupiah

..

JPHQ

Buy

92,000,000,000

6,392,440

6/02/21

84,544

—

Australian

Dollar

....

JPHQ

Buy

34,750,000

27,016,040

6/17/21

—

(441,412)

Australian

Dollar

....

JPHQ

Sell

34,750,000

26,229,126

6/17/21

—

(345,501)

Euro

.............

JPHQ

Buy

52,300,000

64,311,689

6/22/21

—

(648,324)

Japanese

Yen

......

JPHQ

Buy

5,295,000,000

51,308,139

7/07/21

—

(669,026)

Canadian

Dollar

....

JPHQ

Sell

15,200,000

11,900,009

7/08/21

8,022

—

Euro

.............

JPHQ

Sell

930,686

1,135,939

7/08/21

2,638

—

Australian

Dollar

....

JPHQ

Buy

17,000,000

13,092,975

7/28/21

—

(89,843)

Singapore

Dollar

....

JPHQ

Buy

17,500,000

13,177,711

7/28/21

—

(5,770)

South

Korean

Won

..

JPHQ

Buy

14,600,000,000

13,204,305

7/28/21

—

(143,043)

Total

Forward

Exchange

Contracts

...................................................

$2,067,435

$(6,425,981)

Net

unrealized

appreciation

(depreciation)

............................................

$(4,358,546)

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

95

At

January

31,

2021,

the

Fund

had

the

following credit

default

swap

contracts outstanding.

See

Note

3

. 

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

Credit

Default

Swap

Contracts

Description

Periodic

Payment

Rate

Received

(Paid)

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

(a)

Value

Unamortized

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Rating

(b)

OTC

Swap

Contracts

Contracts

to

Buy

Protection

(c)

Single

Name

Ally

Financial,

Inc.

...

(5.00)%

Quarterly

JPHQ

12/20/24

$

20,750,000

$

(3,565,116)

$

(3,011,409)

$

(553,707)

Avon

Products,

Inc.

..

(5.00)%

Quarterly

CITI

3/20/23

8,800,000

(655,993)

(545,395)

(110,598)

Nabors

Industries,

Inc.

(1.00)%

Quarterly

CITI

12/20/21

10,225,000

603,292

131,381

471,911

Contracts

to

Sell

Protection

(c)(d)

Single

Name

Air

France-KLM

.....

5.00%

Quarterly

MSCO

12/20/25

6,430,000

(488,872)

7,514

(496,386)

NR

American

Airlines

Group,

Inc.

......

5.00%

Quarterly

CITI

12/20/21

7,800,000

(249,161)

(461,449)

212,288

CCC

Carnival

Corp.

......

1.00%

Quarterly

CITI

12/20/25

7,800,000

(1,441,830)

(1,191,091)

(250,739)

B

Goldman

Sachs

Group,

Inc.

(The)

.......

1.00%

Quarterly

JPHQ

12/20/24

20,750,000

449,797

277,529

172,268

BBB+

Macy's

Retail

Holdings

LLC

...........

1.00%

Quarterly

JPHQ

12/20/25

7,800,000

(1,343,550)

(1,418,737)

75,187

B

Morgan

Stanley

.....

1.00%

Quarterly

JPHQ

12/20/24

20,750,000

484,978

304,603

180,375

BBB+

Nabors

Industries,

Inc.

1.00%

Quarterly

CITI

12/20/23

10,225,000

(3,097,226)

(882,189)

(2,215,037)

CCC-

Royal

Caribbean

Cruises

Ltd.

......

5.00%

Quarterly

BZWS

12/20/25

7,800,000

(499,500)

(226,875)

(272,625)

B+

United

Airlines

Holdings,

Inc.

...........

5.00%

Quarterly

FBCO

12/20/25

3,775,000

(152,248)

(8,251)

(143,997)

B

Traded

Index

(e)

Citibank

Bespoke

Palma

Index,

Mezzanine

Tranche

5-7%

..........

2.30%

Quarterly

CITI

6/20/21

5,900,000

42,921

—

42,921

Non-

Investment

Grade

(e)

Citibank

Bespoke

Phoenix

Index,

Mezzanine

Tranche

3.97-5.99%

......

3.35%

Quarterly

CITI

12/20/21

1,100,000

10,633

—

10,633

Non-

Investment

Grade

(e)

Citibank

Bespoke

Phoenix

Index,

Mezzanine

Tranche

5-7%

..........

2.90%

Quarterly

CITI

12/20/21

7,800,000

53,342

—

53,342

Non-

Investment

Grade

MCDX.NA.MAIN.31

..

1.00%

Quarterly

CITI

12/20/23

2,325,000

14,239

13,567

672

Investment

Grade

(e)

Morgan

Stanley

Bespoke

Pecan

Index,

Mezzanine

Tranche

5-10%

...

4.10%

Quarterly

MSCO

12/20/21

8,300,000

(357,191)

—

(357,191)

Non-

Investment

Grade

(e)

Morgan

Stanley

Bespoke

Pecan

Index,

Mezzanine

Tranche

5-10%

...

3.98%

Quarterly

MSCO

12/20/21

8,300,000

(366,969)

—

(366,969)

Non-

Investment

Grade

Total

OTC

Swap

Contracts

..............................................

$(10,558,454)

$(7,010,802)

$(3,547,652)

Total

Credit

Default

Swap

Contracts

....................................

$(10,558,454)

$

(7,010,802)

$(3,547,652)

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

Quarterly

Statement

of

Investments

See

Notes

to

Statements

of

Investments.

96

*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.

The

table below

summarizes

the

cash

and/or

securities

held

as

collateral

for

each

applicable

counterparty

at

period

end.

At

January

31,

2021,

the

Fund

had

the

following cross-currency

swap

contracts outstanding.

See

Note

3

. 

Counterparty

Collateral

Pledged

(Received)

BZWS

$610,000

CITI

21,540,000

DBAB

60,000

FBCO

140,000

JPHQ

6,780,000

MSCO

1,990,000

Total

collateral

$31,120,000

(a)

In

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.

(b)

Based

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.

(c)

Performance

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.

(d)

The

fund

enters

contracts

to

sell

protection

to

create

a

long

credit

position.

(e)

Represents

a

custom

index

comprised

of

a

basket

of

underlying

instruments.

Cross-Currency

Swap

Contracts

Description

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

Value/

Unrealized

Appreciation

(Depreciation)

aA

aaa

aaa

aaa

OTC

Swap

Contracts

Receive

Floating

3-month

USD

LIBOR

+

1.334%

.....

Quarterly

8,176,000

USD

Pay

Floating

3-month

EURIBOR

+

1.12%

.........

Quarterly

CITI

7/10/21

7,300,000

EUR

$

(677,406)

Receive

Floating

3-month

USD

LIBOR

+

1.23%

.....

Quarterly

2,830,500

USD

Pay

Floating

3-month

EURIBOR

+

1.07%

.........

Quarterly

CITI

9/17/21

2,550,000

EUR

(261,484)

Receive

Floating

3-month

USD

LIBOR

+

1.87%

.....

Quarterly

6,160,000

USD

Pay

Floating

3-month

EURIBOR

+

1.7%

..........

Quarterly

CITI

10/15/21

5,600,000

EUR

(637,827)

Receive

Floating

3-month

USD

LIBOR

+

1.175%

.....

Quarterly

55,747,250

USD

Pay

Floating

3-month

EURIBOR

+

1.05%

.........

Quarterly

CITI

11/22/21

50,450,000

EUR

(5,424,176)

Receive

Floating

3-month

USD

LIBOR

+

1.174%

.....

Quarterly

51,115,500

USD

Pay

Floating

3-month

EURIBOR

+

1.05%

.........

Quarterly

CITI

12/10/21

46,050,000

EUR

(4,740,489)

Receive

Floating

3-month

USD

LIBOR

+

1.318%

.....

Quarterly

26,862,000

USD

Pay

Floating

3-month

EURIBOR

+

1.2%

..........

Quarterly

CITI

12/12/21

24,200,000

EUR

(2,500,585)

Total

Cross

Currency

Swap

Contracts

...........................................................

$(14,241,967)

Franklin

Investors

Securities

Trust

Consolidated

Statement

of

Investments

(unaudited)

Franklin

Total

Return

Fund

(continued)

See

Notes

to

Statements

of

Investments.

Quarterly

Statement

of

Investments

97

At

January

31,

2021,

the

Fund

had

the

following inflation index

swap

contracts outstanding.

See

Note

3

. 

See

A

bbreviations

on

page

117

.

Inflation

Index

Swap

Contracts

Description

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

Value

Unamortized

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Centrally

Cleared

Swap

Contracts

Receive

variable

change

  in

USA

CPI-U

........

At

Maturity

Pay

Fixed

1.913%

.....

At

Maturity

1/14/29

$

37,900,000

$

1,066,490

$

—

$

1,066,490

Receive

variable

change

  in

USA

CPI-U

........

At

Maturity

Pay

Fixed

1.943%

.....

At

Maturity

1/15/29

73,100,000

1,842,576

—

1,842,576

Total

Inflation

Index

Swap

Contracts

..................................

$2,909,066

$—

$2,909,066

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

98

Quarterly

Statement

of

Investments

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 seven

separate

funds,

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP). 

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

over-the-counter

(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

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. 

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

99

Quarterly

Statement

of

Investments

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.

Events

can

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,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Funds'

portfolio

securities

to

the

latest

indications

of

fair

value

at 4

p.m.

Eastern

time.

At

January

31,

2021,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy.

See

the

Fair

Value

Measurements

note

for

more

information.

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

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

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.

2. Financial

Instrument

Valuation

(continued)

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

100

Quarterly

Statement

of

Investments

At

January

31,

2021,

the

Funds

received

U.S.

Treasury

Bills,

Bonds

and

Notes

as

collateral

for

derivatives,

as

follows:

Franklin Low

Duration

Total

Return

Fund

-

$16,710,000

Franklin

Total

Return

Fund

- $31,120,000

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 at

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,

3.

Derivative

Financial

Instruments

(continued)

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

101

Quarterly

Statement

of

Investments

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.

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

markets

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

OTC

option

contracts

primarily

to

manage

and/or

gain

exposure

to

interest

rate

risk.

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 Low

Duration

Total

Return

Fund

-

Futures,

forwards

and

swaps

Franklin

Total

Return

Fund

- Futures,

forwards,

options,

swaps

and

VRI

4.

Mortgage

Dollar

Rolls 

Franklin

Low

Duration

Total

Return

Fund

and

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

3.

Derivative

Financial

Instruments

(continued)

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

102

Quarterly

Statement

of

Investments

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.

5.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19,

has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general,

and

may

continue

for

an

unpredictable

duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the

Funds,

their

ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and

their

ability

to

achieve

their

investment

objectives.

6. Restricted

Securities 

At

January

31,

2021,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

Securities

Act

of

1933,

were

as

follows:

Shares

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

$

20,459,260

1,808,932

Remington

Outdoor

Co.,

Inc.

...................

4/13/12

-

4/12/19

73,081,001

—

Total

Restricted

Securities

(Value

is

1.77%

of

Net

Assets)

.............

$85,872,767

$20,459,260

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Low

Duration

Total

Return

Fund

24,739

b

Appvion

Operations,

Inc.

......................

4/12/19

$

334,607

$

414,892

12,326,925

K2016470219

South

Africa

Ltd.,

A

...............

4/15/13

-

2/01/17

92,077

—

1,226,701

K2016470219

South

Africa

Ltd.,

B

...............

2/01/17

911

—

170,787

Remington

Outdoor

Co.,

Inc.

...................

5/16/18

-

4/12/19

3,690,418

—

Total

Restricted

Securities

(Value

is

0.02%

of

Net

Assets)

.............

$4,118,013

$414,892

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Total

Return

Fund

13,033

c

Appvion

Operations,

Inc.

......................

4/12/19

$

176,272

$

218,566

28,762,824

K2016470219

South

Africa

Ltd.,

A

...............

4/15/13

-

2/01/17

221,469

—

2,862,311

K2016470219

South

Africa

Ltd.,

B

...............

2/01/17

2,125

—

52,019

Remington

Outdoor

Co.,

Inc.

...................

4/12/19

66,324

—

Total

Restricted

Securities

(Value

is

0.01%

of

Net

Assets)

.............

$466,190

$218,566

a

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$21,371,773

as

of

January

31,

2021.

b

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$264,419

as

of

January

31,

2021.

c

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$139,297

as

of

January

31,

2021.

4.

Mortgage

Dollar

Rolls 

(continued)

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

103

Quarterly

Statement

of

Investments

7.

Unfunded

Loan

Commitments  

Certain

or

all

Funds

enter

into

certain

credit

agreements,

all

or

a

portion

of

which

may

be

unfunded.

The

Funds

are

obligated

to

fund

these

loan

commitments

at

the

borrowers’

discretion.

Unfunded

loan

commitments

and

funded

portions

of

credit

agreements

are

marked

to

market

daily.

Funded

portions

of

credit

agreements

are

presented

in

the

Statements

of

Investments.

At

January

31,

2021,

unfunded

commitments

were

as

follows:

8.

Holding

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

January

31,

2021,

investments

in

“affiliated

companies”

were

as

follows: 

Borrower

Unfunded

Commitment

Franklin

Floating

Rate

Daily

Access

Fund

Fieldwood

Energy

LLC

$6,667,375

Total

$6,667,375

Franklin

Low

Duration

Total

Return

Fund

Fieldwood

Energy

LLC

$467,450

Total

$467,450

Franklin

Total

Return

Fund

Fieldwood

Energy

LLC

$644,882

Total

$644,882

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares/Principal

Amount

Held

at

End

of

Period

Investment

Income

Franklin

Floating

Rate

Daily

Access

Fund

Non-Controlled

Affiliates

Dividends

Appvion

Operations,

Inc.

....

$

18,106,975

$

—

$

—

$

—

$

2,352,285

$

20,459,260

1,219,956

$

—

Remington

Outdoor

Co.,

Inc.

.

—

—

—

—

—

—

1,808,932

—

Remington

Outdoor

Co.,

Inc.,

Litigation

Units

.........

—

—

—

—

—

—

170,300

—

Interest

Appvion

Operations,

Inc.,

Term

Loan,

7%,

(3-month

USD

LIBOR

+

6%),

6/12/26

....

28,599,539

5,220

a

(7,539,489)

15,977

290,526

21,371,773

21,569,457

482,178

Total

Affiliated

Securities

(Value

is

3.6%

of

Net

Assets)

$46,706,514

$5,220

$(7,539,489)

15,977

2,642,811

$41,831,033

$482,178

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

include

accretion,

amortization,

partnership

adjustments,

and/or

corporate

actions.

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

104

Quarterly

Statement

of

Investments

9.

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

January

31,

2021,

investments

in

affiliated

management

investment

companies

were

as

follows: 

    aa

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

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Adjustable

U.S.

Government

Securities

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

$37,053,731

$963,256

$(2,238,451)

$—

$—

$35,778,536

35,778,536

$—

Total

Affiliated

Securities

....

$37,053,731

$963,256

$(2,238,451)

$—

$—

$35,778,536

$—

Franklin

Convertible

Securities

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

$211,356,904

$191,736,213

$(299,451,641)

$—

$—

$103,641,476

103,641,476

$—

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

$6,200,000

$41,842,000

$(44,639,000)

$

—

$

—

$3,403,000

3,403,000

$—

Total

Affiliated

Securities

....

$217,556,904

$233,578,213

$(344,090,641)

$—

$—

$107,044,476

$—

Franklin

Equity

Income

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

$13,813,242

$172,448,740

$(130,577,676)

$—

$—

$55,684,306

55,684,306

$—

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

$14,180,000

$5,857,000

$(20,037,000)

—

—

$—

a

—

$—

Total

Affiliated

Securities

....

$27,993,242

$178,305,740

$(150,614,676)

$—

$—

$55,684,306

$—

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

105

Quarterly

Statement

of

Investments

    aa

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

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Floating

Rate

Daily

Access

Fund

Non-Controlled

Affiliates

Dividends

Franklin

Floating

Rate

Income

Fund

$37,437,554

$—

$(4,000,004)

$(1,176,106)

$3,020,023

$35,281,467

4,630,114

$599,002

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

69,832,875

74,289,380

(99,343,719)

—

—

44,778,536

44,778,536

—

Invesco

Senior

Loan

ETF

.....

—

6,249,043

—

—

(18,199)

6,230,844

280,416

18,227

Total

Affiliated

Securities

....

$107,270,429

$80,538,423

$(103,343,723)

$(1,176,106)

$3,001,824

$86,290,847

$617,229

Franklin

Low

Duration

Total

Return

Fund

Non-Controlled

Affiliates

Dividends

Franklin

Floating

Rate

Income

Fund

$17,370,266

$—

$—

$—

$836,258

$18,206,524

2,389,308

$282,258

Franklin

Liberty

High

Yield

Corporate

ETF

............

—

6,912,431

—

—

(90,176)

6,822,255

259,500

47,059

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

197,465,127

223,447,565

(204,005,408)

—

—

216,907,284

216,907,284

—

Total

Affiliated

Securities

....

$214,835,393

$230,359,996

$(204,005,408)

$—

$746,082

$241,936,063

$329,317

Franklin

Managed

Income

Fund

Controlled

Affiliates

Dividends

Franklin

FTSE

United

Kingdom

ETF

....................

$27,669,150

$—

$—

$

—

$

5,720,850

$

33,390,000

1,500,000

$

415,062

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

25,719,105

—

(1,805,826)

1,805,826

(2,442,120)

23,276,985

1,175,000

—

Franklin

Liberty

U.S.

Low

Volatility

ETF

....................

37,699,500

—

—

—

3,380,500

41,080,000

1,000,000

218,270

Total

Controlled

Affiliates

....

$91,087,755

$—

$(1,805,826)

$

1,805,826

$

6,659,230

$97,746,985

$

633,332

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

$28,554,890

$308,034,950

$(217,877,886)

$—

$—

$118,711,954

118,711,954

$—

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

$2,956,000

$18,557,000

$(20,865,000)

$

—

$

—

$648,000

648,000

$—

Total

Affiliated

Securities

....

$122,598,645

$326,591,950

$(240,548,712)

$1,805,826

$6,659,230

$217,106,939

$633,332

9.

Investments

in

Affiliated

Management

Investment

Companies 

(continued)

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

106

Quarterly

Statement

of

Investments

10.

Investments

in

FT

Underlying

Funds  

Franklin

Total

Return

Fund

invested

in

a

certain

financial

instrument

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.

Prior

to

January

31,

2021,

the

FT

subsidiary’s

investment,

Turtle

Bay

Resort,

liquidated

and

paid

a

final

distribution.

At

January

31,

2021,

other

assets

and

liabilities

of

FT

subsidiary

are

reflected

in

the

Fund’s

Consolidated

Statement

of

Investments.

At

January

31,

2021,

the

net

assets

of

FT

subsidiary

were

$

5,133,860,

representing

0.1%

of

the

Fund’s

consolidated

net

assets.

The

Fund’s

investment

in

FT

subsidiary

is

limited

to

25%

of

consolidated

assets.

11. 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. 

    aa

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

Total

Return

Fund

Controlled

Affiliates

Dividends

Franklin

Liberty

High

Yield

Corporate

ETF

............

$147,928,671

$—

$—

$

—

$

5,342,029

$

153,270,700

5,830,000

$

1,970,342

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

487,160,950

—

—

—

847,077

488,008,027

18,335,000

7,683,960

Franklin

Liberty

Senior

Loan

ETF

21,950,830

—

—

—

793,584

22,744,414

914,900

187,058

Total

Controlled

Affiliates

....

$657,040,451

$—

$—

—

6,982,690

$664,023,141

9,841,360

Non-Controlled

Affiliates

Dividends

Franklin

Floating

Rate

Income

Fund

$11,263,485

$—

$—

$—

$542,259

$11,805,744

1,549,310

$184,541

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

226,741,557

351,492,528

(360,944,472)

—

—

217,289,613

217,289,613

—

Total

Affiliated

Securities

....

$895,045,493

$351,492,528

$(360,944,472)

$—

$7,524,949

$893,118,498

$10,025,901

a

As

of

January

31,

2021,

no

longer

held

by

the

fund.

9.

Investments

in

Affiliated

Management

Investment

Companies 

(continued)

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

107

Quarterly

Statement

of

Investments

A

summary

of

inputs

used

as

of

January

31,

2021,

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

Commercial

Mortgage-Backed

Securities

......

$

—

$

55,533,892

$

—

$

55,533,892

Mortgage-Backed

Securities

................

—

597,269,902

—

597,269,902

Short

Term

Investments

...................

35,778,536

23,312,633

—

59,091,169

Total

Investments

in

Securities

...........

$35,778,536

$676,116,427

$—

$711,894,963

Franklin

Convertible

Securities

Fund

Assets:

Investments

in

Securities:

Common

Stocks

........................

43,801,342

—

—

43,801,342

Convertible

Preferred

Stocks

:

Auto

Components

......................

82,388,500

—

—

82,388,500

Capital

Markets

........................

79,111,200

—

—

79,111,200

Chemicals

...........................

50,086,086

—

—

50,086,086

Electric

Utilities

........................

185,496,600

—

—

185,496,600

Food

Products

........................

68,260,500

—

—

68,260,500

Gas

Utilities

..........................

14,122,800

—

—

14,122,800

Health

Care

Equipment

&

Supplies

.........

106,760,322

—

—

106,760,322

Health

Care

Technology

.................

24,246,000

—

—

24,246,000

Life

Sciences

Tools

&

Services

............

75,940,200

—

—

75,940,200

Machinery

............................

32,986,305

—

—

32,986,305

Multi-Utilities

..........................

58,190,160

—

—

58,190,160

Semiconductors

&

Semiconductor

Equipment

.

104,428,125

—

—

104,428,125

Water

Utilities

.........................

45,468,500

—

—

45,468,500

Wireless

Telecommunication

Services

.......

—

55,266,240

—

55,266,240

Convertible

Bonds

.......................

—

3,977,704,885

—

3,977,704,885

Escrows

and

Litigation

Trusts

...............

—

—

—

b

—

Short

Term

Investments

...................

107,044,476

10,226,385

—

117,270,861

Total

Investments

in

Securities

...........

$1,078,331,116

$4,043,197,510

$—

$5,121,528,626

Franklin

Equity

Income

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

101,694,045

—

—

101,694,045

Air

Freight

&

Logistics

...................

59,675,000

—

—

59,675,000

Banks

...............................

296,022,715

—

—

296,022,715

Beverages

...........................

114,398,780

—

—

114,398,780

Capital

Markets

........................

183,673,245

—

—

183,673,245

Chemicals

...........................

22,454,100

23,184,930

—

45,639,030

Commercial

Services

&

Supplies

...........

42,272,840

—

—

42,272,840

Communications

Equipment

..............

16,672,920

—

—

16,672,920

Diversified

Telecommunication

Services

.....

72,167,856

—

—

72,167,856

Electric

Utilities

........................

210,508,785

—

—

210,508,785

Electrical

Equipment

....................

42,944,500

—

—

42,944,500

Equity

Real

Estate

Investment

Trusts

(REITs)

.

36,149,000

—

—

36,149,000

Food

&

Staples

Retailing

.................

50,927,625

—

—

50,927,625

Food

Products

........................

—

13,394,790

—

13,394,790

Health

Care

Equipment

&

Supplies

.........

82,285,110

—

—

82,285,110

Health

Care

Providers

&

Services

..........

44,339,630

—

—

44,339,630

Hotels,

Restaurants

&

Leisure

.............

46,348,320

—

—

46,348,320

Household

Products

....................

71,797,600

—

—

71,797,600

Insurance

............................

16,734,450

—

—

16,734,450

11. Fair

Value

Measurements 

(continued)

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

108

Quarterly

Statement

of

Investments

Level

1

Level

2

Level

3

Total

Franklin

Equity

Income

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

IT

Services

...........................

$

6,860,375

$

—

$

—

$

6,860,375

Machinery

............................

20,733,017

—

—

20,733,017

Media

...............................

53,783,450

—

—

53,783,450

Multiline

Retail

........................

71,109,225

—

—

71,109,225

Oil,

Gas

&

Consumable

Fuels

.............

115,841,500

—

—

115,841,500

Personal

Products

.....................

13,564,050

—

—

13,564,050

Pharmaceuticals

.......................

164,478,965

—

—

164,478,965

Road

&

Rail

..........................

56,315,560

—

—

56,315,560

Semiconductors

&

Semiconductor

Equipment

.

82,511,970

—

—

82,511,970

Software

.............................

49,622,656

—

—

49,622,656

Specialty

Retail

........................

59,314,850

—

—

59,314,850

Technology

Hardware,

Storage

&

Peripherals

.

24,544,560

—

—

24,544,560

Equity-Linked

Securities

...................

—

264,189,176

—

264,189,176

Convertible

Preferred

Stocks

...............

203,984,523

—

—

203,984,523

Short

Term

Investments

...................

55,684,306

—

—

55,684,306

Total

Investments

in

Securities

...........

$2,489,415,528

$300,768,896

$—

$2,790,184,424

Franklin

Floating

Rate

Daily

Access

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

—

—

—

b

—

Hotels,

Restaurants

&

Leisure

.............

—

647,618

—

647,618

Machinery

............................

—

8,885,560

—

8,885,560

Oil,

Gas

&

Consumable

Fuels

.............

—

2,308,005

—

2,308,005

Paper

&

Forest

Products

.................

—

—

20,459,260

20,459,260

Road

&

Rail

..........................

—

—

230,308

230,308

Management

Investment

Companies

.........

41,512,311

—

—

41,512,311

Preferred

Stocks

........................

—

1,758,747

—

1,758,747

Warrants

..............................

—

—

1,133

1,133

Corporate

Bonds

:

Airlines

..............................

—

6,413,853

—

6,413,853

Construction

Materials

..................

—

4,218,906

—

4,218,906

Food

Products

........................

—

409,000

—

409,000

Hotels,

Restaurants

&

Leisure

.............

—

534,552

—

534,552

Household

Durables

....................

—

515,938

—

515,938

Media

...............................

—

5,287,162

—

5,287,162

Oil,

Gas

&

Consumable

Fuels

.............

—

2,514,000

—

2,514,000

Road

&

Rail

..........................

—

—

19,369,418

19,369,418

Specialty

Retail

........................

—

1,094,123

—

1,094,123

Wireless

Telecommunication

Services

.......

—

1,430,300

—

1,430,300

Senior

Floating

Rate

Interests

...............

—

957,066,646

40,465,873

997,532,519

Asset-Backed

Securities

..................

—

18,086,837

—

18,086,837

Escrows

and

Litigation

Trusts

...............

—

2,430,638

—

b

2,430,638

Short

Term

Investments

...................

44,778,536

—

—

44,778,536

Total

Investments

in

Securities

...........

$86,290,847

$1,013,601,885

$80,525,992

$1,180,418,724

11. Fair

Value

Measurements 

(continued)

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

109

Quarterly

Statement

of

Investments

Level

1

Level

2

Level

3

Total

Franklin

Floating

Rate

Daily

Access

Fund

(continued)

Assets:

(continued)

Other

Financial

Instruments:

Unfunded

Loan

Commitments

..............

$

—

$

342,335

$

—

$

342,335

Total

Other

Financial

Instruments

.........

$—

$342,335

$—

$342,335

Franklin

Low

Duration

Total

Return

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

—

—

—

b

—

Machinery

............................

—

199,920

—

199,920

Multiline

Retail

........................

—

—

—

b

—

Oil,

Gas

&

Consumable

Fuels

.............

—

—

732

732

Paper

&

Forest

Products

.................

15,950

—

414,892

430,842

Road

&

Rail

..........................

—

—

3,798

3,798

Specialty

Retail

........................

414,037

—

—

414,037

Management

Investment

Companies

.........

25,028,779

—

—

25,028,779

Warrants

:

Machinery

............................

—

—

318

318

Oil,

Gas

&

Consumable

Fuels

.............

—

—

24

24

Paper

&

Forest

Products

.................

175

—

—

175

Corporate

Bonds

:

Aerospace

&

Defense

...................

—

3,088,432

—

3,088,432

Air

Freight

&

Logistics

...................

—

29,486,034

—

29,486,034

Airlines

..............................

—

2,363,844

—

2,363,844

Auto

Components

......................

—

4,498,283

—

4,498,283

Banks

...............................

—

144,871,877

—

144,871,877

Beverages

...........................

—

7,301,487

—

7,301,487

Biotechnology

.........................

—

8,970,606

—

8,970,606

Capital

Markets

........................

—

10,796,893

—

10,796,893

Chemicals

...........................

—

16,648,526

—

16,648,526

Commercial

Services

&

Supplies

...........

—

1,416,861

—

1,416,861

Communications

Equipment

..............

—

1,533,750

—

1,533,750

Consumer

Finance

.....................

—

28,587,065

—

28,587,065

Containers

&

Packaging

.................

—

3,696,743

—

3,696,743

Diversified

Financial

Services

.............

—

8,083,540

—

8,083,540

Diversified

Telecommunication

Services

.....

—

1,720,748

—

1,720,748

Electric

Utilities

........................

—

44,242,031

—

44,242,031

Electrical

Equipment

....................

—

3,978,255

—

3,978,255

Electronic

Equipment,

Instruments

&

Components

........................

—

629,663

—

629,663

Energy

Equipment

&

Services

.............

—

9,765,265

—

9,765,265

Entertainment

.........................

—

19,547,859

—

19,547,859

Equity

Real

Estate

Investment

Trusts

(REITs)

.

—

12,858,722

—

12,858,722

Food

&

Staples

Retailing

.................

—

3,261,975

—

3,261,975

Health

Care

Equipment

&

Supplies

.........

—

351,095

—

351,095

Health

Care

Providers

&

Services

..........

—

20,329,888

—

20,329,888

Hotels,

Restaurants

&

Leisure

.............

—

2,205,322

—

2,205,322

Independent

Power

and

Renewable

Electricity

Producers

..........................

—

2,740,000

—

2,740,000

Industrial

Conglomerates

................

—

5,769,321

—

5,769,321

Insurance

............................

—

20,018,437

—

20,018,437

Interactive

Media

&

Services

..............

—

19,784,696

—

19,784,696

Internet

&

Direct

Marketing

Retail

..........

—

15,835,133

—

15,835,133

IT

Services

...........................

—

5,501,718

—

5,501,718

Machinery

............................

—

6,513,494

—

6,513,494

11. Fair

Value

Measurements 

(continued)

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

110

Quarterly

Statement

of

Investments

Level

1

Level

2

Level

3

Total

Franklin

Low

Duration

Total

Return

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Corporate

Bonds:

Media

...............................

$

—

$

12,976,615

$

—

$

12,976,615

Metals

&

Mining

.......................

—

5,908,164

—

5,908,164

Multiline

Retail

........................

—

—

1,652

b

1,652

Multi-Utilities

..........................

—

1,424,256

—

1,424,256

Oil,

Gas

&

Consumable

Fuels

.............

—

63,679,581

—

63,679,581

Personal

Products

.....................

—

6,254,391

—

6,254,391

Pharmaceuticals

.......................

—

11,375,575

—

11,375,575

Road

&

Rail

..........................

—

—

319,141

319,141

Semiconductors

&

Semiconductor

Equipment

.

—

15,595,118

—

15,595,118

Specialty

Retail

........................

—

537,595

—

537,595

Thrifts

&

Mortgage

Finance

...............

—

10,761,576

—

10,761,576

Tobacco

.............................

—

7,196,660

—

7,196,660

Trading

Companies

&

Distributors

..........

—

2,539,203

—

2,539,203

Wireless

Telecommunication

Services

.......

—

3,509,002

—

3,509,002

Senior

Floating

Rate

Interests

...............

—

95,869,301

833,147

96,702,448

Marketplace

Loans

......................

—

—

31,249,876

31,249,876

Foreign

Government

and

Agency

Securities

....

—

153,837,547

—

153,837,547

U.S.

Government

and

Agency

Securities

.......

—

581,584,657

—

581,584,657

Asset-Backed

Securities

..................

—

522,279,732

—

522,279,732

Commercial

Mortgage-Backed

Securities

......

—

62,422,994

—

62,422,994

Mortgage-Backed

Securities

................

—

74,759,911

—

74,759,911

Municipal

Bonds

.........................

—

90,347,675

—

90,347,675

Residential

Mortgage-Backed

Securities

......

—

274,788,047

—

274,788,047

Escrows

and

Litigation

Trusts

...............

—

19,000

—

b

19,000

Short

Term

Investments

...................

216,907,284

46,998,089

—

263,905,373

Total

Investments

in

Securities

...........

$242,366,225

$2,511,262,172

$32,823,580

$2,786,451,977

Other

Financial

Instruments:

Forward

exchange

contracts

...............

—

570,387

—

570,387

Futures

contracts

........................

2,727,951

—

—

2,727,951

Swap

contracts

.........................

—

5,352,507

—

5,352,507

Unfunded

Loan

Commitments

..............

—

24,001

—

24,001

Total

Other

Financial

Instruments

.........

$2,727,951

$5,946,895

$—

$8,674,846

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

1,290,879

$

—

$

1,290,879

Futures

contracts

........................

283,832

—

—

283,832

Swap

contracts

..........................

—

13,132,074

—

13,132,074

Total

Other

Financial

Instruments

.........

$283,832

$14,422,953

$—

$14,706,785

Franklin

Managed

Income

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

41,631,569

—

—

41,631,569

Air

Freight

&

Logistics

...................

27,125,000

—

—

27,125,000

Banks

...............................

291,138,529

—

—

291,138,529

Beverages

...........................

68,181,030

—

—

68,181,030

Biotechnology

.........................

25,620,000

—

—

25,620,000

Capital

Markets

........................

49,281,750

—

—

49,281,750

Chemicals

...........................

26,676,000

—

—

26,676,000

Diversified

Telecommunication

Services

.....

73,838,136

21,338,200

—

95,176,336

Electric

Utilities

........................

47,210,000

—

—

47,210,000

11. Fair

Value

Measurements 

(continued)

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

111

Quarterly

Statement

of

Investments

Level

1

Level

2

Level

3

Total

Franklin

Managed

Income

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Food

Products

........................

$

28,227,500

$

—

$

—

$

28,227,500

Health

Care

Providers

&

Services

..........

88,918,000

—

—

88,918,000

Household

Products

....................

57,694,500

—

—

57,694,500

Industrial

Conglomerates

................

58,611,000

—

—

58,611,000

Insurance

............................

13,630,000

—

—

13,630,000

IT

Services

...........................

23,822,000

—

—

23,822,000

Multiline

Retail

........................

18,117,000

—

—

18,117,000

Multi-Utilities

..........................

134,376,932

—

—

134,376,932

Oil,

Gas

&

Consumable

Fuels

.............

160,803,500

—

—

160,803,500

Pharmaceuticals

.......................

131,466,750

—

—

131,466,750

Road

&

Rail

..........................

40,481,350

—

—

40,481,350

Specialty

Retail

........................

20,311,500

—

—

20,311,500

Management

Investment

Companies

.........

97,746,985

—

—

97,746,985

Equity-Linked

Securities

...................

—

606,586,647

—

606,586,647

Convertible

Preferred

Stocks

...............

401,619,000

—

—

401,619,000

Preferred

Stocks

........................

5,884,085

—

—

5,884,085

Corporate

Bonds

........................

—

914,347,987

—

914,347,987

U.S.

Government

and

Agency

Securities

.......

—

104,556,840

—

104,556,840

Asset-Backed

Securities

..................

—

23,286,953

—

23,286,953

Mortgage-Backed

Securities

................

—

75,839,091

—

75,839,091

Short

Term

Investments

...................

119,359,954

162,803

—

119,522,757

Total

Investments

in

Securities

...........

$2,051,772,070

$1,746,118,521

$—

$3,797,890,591

Franklin

Total

Return

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

—

—

—

b

—

Energy

Equipment

&

Services

.............

231,934

—

—

231,934

Hotels,

Restaurants

&

Leisure

.............

—

84,078

—

84,078

Machinery

............................

—

105,332

—

105,332

Multiline

Retail

........................

—

—

—

b

—

Oil,

Gas

&

Consumable

Fuels

.............

—

—

3,256

3,256

Paper

&

Forest

Products

.................

79,971

—

218,566

298,537

Road

&

Rail

..........................

—

—

2,003

2,003

Specialty

Retail

........................

812,149

—

—

812,149

Management

Investment

Companies

.........

675,828,885

—

—

675,828,885

Preferred

Stocks

:

Banks

...............................

2,610,510

—

—

2,610,510

Hotels,

Restaurants

&

Leisure

.............

—

228,330

—

228,330

Warrants

:

Machinery

............................

—

—

168

168

Oil,

Gas

&

Consumable

Fuels

.............

—

—

57

57

Paper

&

Forest

Products

.................

878

—

—

878

Corporate

Bonds

:

Aerospace

&

Defense

...................

—

18,179,055

—

18,179,055

Air

Freight

&

Logistics

...................

—

39,138,987

—

39,138,987

Airlines

..............................

—

22,846,824

—

22,846,824

Auto

Components

......................

—

6,028,788

—

6,028,788

Banks

...............................

—

136,367,053

—

136,367,053

Beverages

...........................

—

27,509,211

—

27,509,211

Biotechnology

.........................

—

35,514,687

—

35,514,687

Capital

Markets

........................

—

28,437,121

—

28,437,121

11. Fair

Value

Measurements 

(continued)

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

112

Quarterly

Statement

of

Investments

Level

1

Level

2

Level

3

Total

Franklin

Total

Return

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Corporate

Bonds:

Chemicals

...........................

$

—

$

17,666,560

$

—

$

17,666,560

Commercial

Services

&

Supplies

...........

—

2,595,313

—

2,595,313

Communications

Equipment

..............

—

2,979,375

—

2,979,375

Consumer

Finance

.....................

—

24,447,843

—

24,447,843

Containers

&

Packaging

.................

—

36,901,452

—

36,901,452

Diversified

Financial

Services

.............

—

12,619,644

—

12,619,644

Diversified

Telecommunication

Services

.....

—

38,437,654

—

38,437,654

Electric

Utilities

........................

—

95,165,490

—

95,165,490

Electronic

Equipment,

Instruments

&

Components

........................

—

22,990,986

—

22,990,986

Energy

Equipment

&

Services

.............

—

3,226,423

—

3,226,423

Entertainment

.........................

—

28,660,717

—

28,660,717

Equity

Real

Estate

Investment

Trusts

(REITs)

.

—

21,228,746

—

21,228,746

Food

&

Staples

Retailing

.................

—

10,910,743

—

10,910,743

Food

Products

........................

—

14,359,137

—

14,359,137

Health

Care

Equipment

&

Supplies

.........

—

1,989,541

—

1,989,541

Health

Care

Providers

&

Services

..........

—

103,068,965

—

103,068,965

Hotels,

Restaurants

&

Leisure

.............

—

28,121,123

—

28,121,123

Household

Durables

....................

—

24,877,615

—

24,877,615

Independent

Power

and

Renewable

Electricity

Producers

..........................

—

13,696,025

—

13,696,025

Insurance

............................

—

88,112,593

—

88,112,593

Interactive

Media

&

Services

..............

—

15,179,012

—

15,179,012

Internet

&

Direct

Marketing

Retail

..........

—

20,445,728

—

20,445,728

IT

Services

...........................

—

24,927,456

—

24,927,456

Machinery

............................

—

24,063,725

—

24,063,725

Media

...............................

—

55,971,578

—

55,971,578

Metals

&

Mining

.......................

—

2,629,688

—

2,629,688

Multiline

Retail

........................

—

17,845,389

3,856

b

17,849,245

Multi-Utilities

..........................

—

20,670,973

—

20,670,973

Oil,

Gas

&

Consumable

Fuels

.............

—

117,177,900

—

117,177,900

Personal

Products

.....................

—

9,432,500

—

9,432,500

Pharmaceuticals

.......................

—

11,943,886

—

11,943,886

Real

Estate

Management

&

Development

....

—

634,434

—

634,434

Road

&

Rail

..........................

—

25,657,324

168,124

25,825,448

Semiconductors

&

Semiconductor

Equipment

.

—

43,830,028

—

43,830,028

Software

.............................

—

6,289,380

—

6,289,380

Specialty

Retail

........................

—

6,842,227

—

6,842,227

Thrifts

&

Mortgage

Finance

...............

—

5,053,632

—

5,053,632

Tobacco

.............................

—

28,647,324

—

28,647,324

Trading

Companies

&

Distributors

..........

—

9,783,996

—

9,783,996

Wireless

Telecommunication

Services

.......

—

32,012,624

—

32,012,624

Senior

Floating

Rate

Interests

...............

—

156,813,263

438,905

157,252,168

Marketplace

Loans

......................

—

—

9,848,229

9,848,229

Foreign

Government

and

Agency

Securities

....

—

239,375,457

—

239,375,457

U.S.

Government

and

Agency

Securities

.......

—

997,559,976

—

997,559,976

Asset-Backed

Securities

..................

—

651,692,013

—

651,692,013

Commercial

Mortgage-Backed

Securities

:

Diversified

Financial

Services

.............

—

14,890,994

—

14,890,994

Thrifts

&

Mortgage

Finance

...............

—

367,649

7,197

374,846

Mortgage-Backed

Securities

................

—

974,160,315

—

974,160,315

11. Fair

Value

Measurements 

(continued)

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

113

Quarterly

Statement

of

Investments

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

for

the

three

months

ended

January

31,

2021,

is

as

follows: 

Level

1

Level

2

Level

3

Total

Franklin

Total

Return

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Commercial

Mortgage-Backed

Securities:

Municipal

Bonds

.........................

$

—

$

231,800,862

$

—

$

231,800,862

Residential

Mortgage-Backed

Securities

......

—

429,759,725

—

429,759,725

Escrows

and

Litigation

Trusts

...............

—

30,000

—

b

30,000

Options

purchased

.......................

—

2,565,779

—

2,565,779

Short

Term

Investments

...................

217,289,613

—

—

217,289,613

Total

Investments

in

Securities

...........

$896,853,940

$5,084,550,248

$10,690,361

$5,992,094,549

Other

Financial

Instruments:

Forward

exchange

contracts

...............

—

2,067,435

—

2,067,435

Futures

contracts

........................

5,307,308

—

—

5,307,308

Swap

contracts

.........................

—

11,597,874

—

11,597,874

Unfunded

Loan

Commitments

..............

—

33,111

—

33,111

Total

Other

Financial

Instruments

.........

$5,307,308

$13,698,420

$—

$19,005,728

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

—

6,425,981

—

6,425,981

Futures

contracts

........................

11,208,288

—

—

11,208,288

Swap

contracts

..........................

—

26,478,425

—

26,478,425

Total

Other

Financial

Instruments

.........

$11,208,288

$32,904,406

$—

$44,112,694

a

For

detailed

categories,

see

the

accompanying

Statement

of

Investments.

b

Includes

securities

determined

to

have

no

value

at

January

31,

2021.

Balance

at

Beginning

of

Period

Purchases

Sales

Transfer

Into

Level

3

a

Transfer

Out

of

Level

3

b

Cost

Basis

Adjust-

ments

c

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Floating

Rate

Daily

Access

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

.

$

—

d

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

d

$

—

Oil,

Gas

&

Consumable

Fuels

..........

1,460,626

—

—

—

(1,460,626)

—

—

—

—

—

Paper

&

Forest

Products

18,106,975

—

—

—

—

—

—

2,352,285

20,459,260

2,352,285

Road

&

Rail

.......

—

d

—

—

—

—

—

—

230,308

230,308

230,308

Warrants

:

Machinery

.........

—

—

d

—

—

—

—

—

1,133

1,133

1,133

Corporate

Bonds

:

Road

&

Rail

.......

18,585,180

—

—

—

—

476,327

—

307,911

19,369,418

307,911

Senior

Floating

Rate

Interests

:

Household

Products

..

45,517,441

127,315

(13,405,115)

—

—

8,862

58,049

(6,212,778)

26,093,774

(6,212,778)

Road

&

Rail

.......

14,180,644

—

—

—

—

(83,692)

—

275,147

14,372,099

275,147

11. Fair

Value

Measurements 

(continued)

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

114

Quarterly

Statement

of

Investments

Significant

unobservable

valuation

inputs

for

material

Level

3

assets

and/or

liabilities

and

impact

to

fair

value

as

a

result

of

changes

in

unobservable

valuation

inputs

as

of

January

31,

2021,

are

as

follows:

Balance

at

Beginning

of

Period

Purchases

Sales

Transfer

Into

Level

3

a

Transfer

Out

of

Level

3

b

Cost

Basis

Adjust-

ments

c

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

a

a

a

a

a

a

a

a

a

a

a

Franklin

Floating

Rate

Daily

Access

Fund

(continued)

Assets:

Investments

in

Securities:

Escrows

and

Litigation

Trusts

...........

$

—

d

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

d

$

—

Total

Investments

in

Securities

.

$97,850,866

$127,315

$(13,405,115)

$—

$(1,460,626)

$401,497

$58,049

$(3,045,994)

$80,525,992

$(3,045,994)

Franklin

Low

Duration

Total

Return

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

.

—

d

—

—

—

—

—

—

—

—

d

—

Multiline

Retail

......

—

d

—

—

—

—

—

—

—

—

d

—

Oil,

Gas

&

Consumable

Fuels

..........

—

—

(3,827)

863

—

—

—

3,696

732

3,696

Paper

&

Forest

Products

367,190

—

—

—

—

—

—

47,702

414,892

47,702

Road

&

Rail

.......

—

d

—

—

—

—

—

—

3,798

3,798

3,798

Warrants

:

Machinery

.........

—

—

d

—

—

—

—

—

318

318

318

Oil,

Gas

&

Consumable

Fuels

..........

15

—

—

—

—

—

—

9

24

9

Corporate

Bonds

:

Multiline

Retail

......

1,469

184

—

—

—

(27,016)

—

27,015

1,652

27,015

Road

&

Rail

.......

306,219

—

—

—

—

9,704

—

3,218

319,141

3,218

Senior

Floating

Rate

Interests

:

Household

Products

..

2,874,048

2,910

(2,140,156)

—

—

475

4,161

(145,092)

596,345

(140,457)

Road

&

Rail

.......

233,647

—

—

—

—

232

—

2,922

236,802

2,922

Marketplace

Loans

:

Diversified

Financial

Services

........

27,612,358

7,995,306

(4,824,052)

—

—

—

(1,092,882)

1,559,146

31,249,876

1,559,146

Escrows

and

Litigation

Trusts

...........

—

d

—

—

—

—

—

—

—

—

d

—

Total

Investments

in

Securities

.

$31,394,946

$7,998,400

$(6,968,035)

$863

$—

$(16,605)

$(1,088,721)

$1,502,732

$32,823,580

$1,507,367

a

Transferred

into

level

3

as

a

result

of

the

unavailability

of

a

quoted

market

price

in

an

active

market

for

identical

securities

or

as

a

result

of

the

unreliability

of

the

foreign

exchange

rate

and

other

significant

observable

valuation

inputs.

b

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.

c

May

include

accretion,

amortization,

partnership

adjustments,

and/or

other

cost

basis

adjustments.

d

Includes

securities

determined

to

have

no

value.

11. Fair

Value

Measurements 

(continued)

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

115

Quarterly

Statement

of

Investments

Description

Fair

Value

at

End

of

Period

Valuation

Technique

Unobservable

Inputs

Amount

/

Range

(Weighted

Average)

a

Impact

to

Fair

Value

if

Input

Increases

b

Franklin

Floating

Rate

Daily

Access

Fund

Assets:

Investments

in

Securities:

Common

Stocks:

Paper

&

Forest

Products

....

$20,459,260

Discounted

cash

flow

Weighted

average

cost

of

capital

19.3%

Decrease

c

Free

cash

flows

$107.5

mil

Increase

c

Discount

for

lack

of

marketability

8.9%

Decrease

d

Long

term

growth

2.5%

Increase

Corporate

Bonds:

Road

&

Rail

..............

19,369,418

Discounted

cash

flow

Discount

rate

15.6%

Decrease

c

Free

cash

flow

$22.4

mil

Increase

Senior

Floating

Rate

Interests:

Household

...............

26,093,774

Recovery

value

Asset

value

estimate

$58.5

mil

Increase

c

Road

&

Rail

..............

14,372,099

Discounted

cash

flow

Discount

rate

10.2%

Decrease

d

Free

cash

flow

$16.9

mil

Increase

All

other

Investments

(

d

)

..........

231,441

e,f

Total

.......................

$80,525,992

Franklin

Low

Duration

Total

Return

Fund

Assets:

Investments

in

Securities:

Marketplace

Loans:

Lending

Club

.............

$13,784,324

Discounted

cash

flow

Loss-Adjusted

Discount

rate

7.4%

Decrease

c

Projected

Loss

rate

29.2%

Decrease

c

Lending

Club

LCX

.........

4,048,183

Discounted

cash

flow

Loss-Adjusted

Discount

rate

9.0%

Decrease

c

Projected

Loss

rate

22.1%

Decrease

c

Square

Capital

............

11,514,672

Discounted

cash

flow

Loss-Adjusted

Discount

rate

4.3%

Decrease

c

Projected

Loss

rate

6.0%

Decrease

c

All

other

investments

..........

3,476,401

e,f

Total

.......................

$32,823,580

a

Weighted

based

on

the

relative

fair

value

of

the

financial

instruments.

b

Represents

the

directional

change

in

the

fair

value

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.

c

Represents

a

significant

impact

to

fair

value

and

net

assets.

d

Represents

a

significant

impact

to

fair

value

but

not

net

assets.

e

Includes

fair

value

of

immaterial

assets

and/or

liabilities

developed

using

various

valuation

techniques

and

unobservable

inputs.

May

also

include

values

derived

using

private

transaction

prices

or

non-public

third

party

pricing

information

which

is

unobservable.

f

Includes

securities

determined

to

have

no

value

at

January

31,

2021.

11. Fair

Value

Measurements 

(continued)

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

116

Quarterly

Statement

of

Investments

12.

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.

Franklin

Investors

Securities

Trust

Notes

to

Financial

Statements

(unaudited)

117

Quarterly

Statement

of

Investments

Abbreviations

Counterparty

BZWS

Barclays

Bank

plc

CITI

Citibank

NA

DBAB

Deutsche

Bank

AG

FBCO

Credit

Suisse

Group

AG

JPHQ

JPMorgan

Chase

Bank

NA

MSCO

Morgan

Stanley

Currency

AUD

Australian

Dollar

BRL

Brazilian

Real

CAD

Canadian

Dollar

DOP

Dominican

Peso

EUR

Euro

JPY

Japanese

Yen

USD

United

States

Dollar

UYU

Uruguayan

Peso

Selected

Portfolio

ADR

American

Depositary

Receipt

AGMC

Assured

Guaranty

Municipal

Corp.

BZDIOVRA

Brazil

Inter-Bank

Deposit

Rate

CLO

Collateralized

Loan

Obligation

CMT

Constant

Monthly

U.S.

Treasury

Securities

Yield

Curve

Rate

Index

COFI

Cost

of

Funds

Index

ETF

Exchange-Traded

Fund

EURIBOR

Euro

Inter-Bank

Offer

Rate

FHLMC

Federal

Home

Loan

Mortgage

Corp.

FNMA

Federal

National

Mortgage

Association

FRN

Floating

Rate

Note

GDP

Gross

Domestic

Product

GNMA

Government

National

Mortgage

Association

GO

General

Obligation

H15BDI

U.S.

Treasury

Bill

Auction

High

Discount

Rate

LIBOR

London

Inter-Bank

Offered

Rate

MBS

Mortgage-Backed

Security

PIK

Payment-In-Kind

TBD

To

Be

Determined

T-Note

Treasury

Note

VRI

Value

Recovery

Instrument

For

additional

information

on

the

Funds'

significant

accounting

policies,

please

refer

to

the Funds'

most

recent

semiannual

or

annual

shareholder

report.