Don’t Wait for Goldilocks
Yield curves have steepened and the opportunity cost of waiting for a “Goldilocks moment” to add duration has risen. Learn why diversifying across duration exposures, or “riding the curve” offers a compelling solution.
11/7/2023
5 min read
Topic
Fixed Income
Key takeaways
- Prepare for different outcomes. Taking a measured approach to allocating across the yield curve, or “riding the curve,” may help investors position for economic outcomes.
- Diversify duration exposures. Yield curves have steepened, bringing longer and shorter maturity yields more in line—offering an attractive entry point to diversify duration.
- Don’t wait. The opportunity cost for investors waiting for a “Goldilocks moment” to add duration has risen. Those who have waited have historically underperformed.
Published insights
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Allspring's Plus Fixed Income team explains the three key elements they believe may lead to a more balanced and enhanced return profile.
Allspring's Plus Fixed Income team explains why they believe now is the time to utilise an unconstrained multi-sector approach to uncover opportunities in global fixed income.
Insight
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Joseph Dore, Allspring’s head of International Consultant Relations, goes around the globe with senior portfolio managers Sarah Harrison and Noah Wise from the Plus Fixed Income team, talking about why now is an exciting time to be a global multi-sector fixed income investor.
George Bory discusses the intersection of politics and finance, the impact of previous U.S. election results on U.S. and global bonds, and the importance of economic fundamentals in post-election fixed income outcomes.
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Podcast
Still T-bill and Chill?Jeff Weaver, CFA, head of Allspring’s Global Liquidity Solutions team, and George Bory, CFA, chief investment strategist for Allspring Fixed Income, discuss recent Fed (U.S. Federal Reserve) activity, new money fund liquidity requirements, and allocating investments at the front end of the curve.
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Alex Temple, senior portfolio manager, has experience and expertise in credit portfolios and sustainable finance, making him a natural fit to co-manage Allspring’s climate transition credit strategies.
George Bory, Chief Investment Strategist for Fixed Income, interviews Noah Wise, Senior Portfolio Manager for the Plus Fixed Income team. The pair discuss how the Fed may react to stickier inflation, a potential market impact of the impending U.S. election, and benefits of diversifying your fixed income portfolio.