Investors may want to focus on front end of yield curve — as Street anticipates next Fed meetings
Bond market investors may want to focus on the front of the yield curve, according to Allspring Global Investments’ Noah Wise.
AllSpring Global Investments' Noah Wise suggests investors should focus on the front end of the yield curve, according to a CNBC report. The strategy involves allocating more resources to short-term Treasurys rather than long-duration bonds. Wise, who leads the firm's global macro strategy and serves as a senior portfolio manager, believes this approach is suitable for a diversified portfolio, given the expected Fed interest rate hikes over the next couple of years.
He views yields above 4% on short-term Treasurys, with relatively low risk, as particularly attractive. Wise also highlights potential opportunities in the U.S. credit market, noting stronger macro fundamentals compared to European credit markets. However, he emphasizes that diversification should extend beyond credit investments, suggesting consideration of emerging markets with high yields, particularly in Latin America, despite geopolitical risks.
Despite the Fed's decision to keep interest rates unchanged, Wise maintains his investment strategy, noting that market fluctuations between Fed meetings present opportunities for tactical adjustments to capitalize on yield volatility.
Written by urgent.news from CNBC's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
