Bond markets outside the US may offer better returns
Allspring Global Investments is advising clients to consider bond markets outside the US.
The firm’s chief investment strategist in fixed income, George Bory, notes that central banks in countries like the UK, Europe, and Australia are raising interest rates, which could lead to better returns for bond investors.
Some central banks have already raised rates, with the ECB increasing rates a few weeks ago, and are expected to do more, potentially by 25 basis points, although the pace may be slower than expected unless the Fed validates these moves.
This shift in strategy could help investors diversify their portfolios by playing different rate cycles, mixing international and US duration bonds.