Income Generator: Politics and Bonds 2024
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.
Key takeaways
- More than 50% of the world’s population has been heading to the polls this year, and so far, the world’s bond markets took most of these elections in stride.
- History suggests it’s unproductive to try pre-positioning a bond portfolio for a U.S. election—but that repositioning it after an election appears to be beneficial.
- Historically, U.S. bonds performed better when control of Congress and the presidency was split between parties. For global bonds, the opposite was true.
- As much as politics matter, economic fundamentals tend to matter more.
Related insights
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
Bonds Be Nimble, Bonds Be QuickTwo of Allspring’s fixed income teams provide examples of how they have exploited pricing inefficiencies through thorough credit research and careful portfolio management.
Janet Rilling, head of Allspring’s Plus Fixed Income Team, was named by Morningstar again in 2023 as one of the top female portfolio managers in the U.S.
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.
From Allspring's Global Fixed Income team, Alex Temple, Head of Credit, and Lauren van Biljon, Head of Rates and FX, join Matt Soifer, Head of US institutional distribution, to go around the globe—discussing how recent and upcoming elections from Asia, Europe, North America, and more may impact bond markets worldwide.
We discuss the current macro environment for bonds and how different types of investors can approach today’s bond market.
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.
Amidst a backdrop of diverging growth and inflation trends driving central bank policy, three strategies for global investors remain as relevant today as they were in the beginning of the year.
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.
The municipal bond market is highly fragmented and inefficient, often making it difficult for individual investors to effectively transact. Learn how institutions can offer a better experience for investors who leverage their capabilities.
For bond investors, the “Goldilocks moment” has arrived. We see this as an opportunity to diversify duration or “ride the curve.”
Recent higher bond market volatility has driven increased dispersion across sectors/securities, creating opportunities for prudent security selection that can enhance returns within high-quality fixed income portfolios.