Newssos
Allspring Global Investments is directing clients away from domestic fixed income and toward bond markets in countries where central banks are raising interest rates or where inflation dynamics differ from those in the United States.
The firm's active push signals a conviction call on international bonds, not a tentative hedge. The Core Trade The argument Allspring is making to clients rests on two legs: rate trajectories and inflation dynamics.
Central banks raising rates create a more favorable environment for bond investors by pushing yields higher on new issuance, while countries with different inflation patterns from the United States may offer more predictable real returns.
Together, those factors point to opportunities in non-U.S. markets that Allspring believes clients are underweighting.
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