De-Risking? Mind the Carbon!
Shifting a portfolio from stocks to bonds reduces investment risk, but it can also increase the portfolio’s carbon footprint. Read about a carbon-aware approach to reduce that impact and benefit the portfolio overall.
Key takeaways
- Bond investors can start positioning for the eventual normalization of the yield curve by extending duration and anticipating a steepening curve.
- Income remains the primary driver of returns in fixed income. Maximizing income per unit of risk can help generate efficient expected returns.
- Slower expected economic growth suggests that a higher-quality bias should persist as monetary policy remains restrictive and fiscal support appears unlikely anytime soon.
- A combination of healthy fundamentals and strong technicals should support municipal bonds and provide a buffer against market volatility.
Related insights
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.
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.
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.
Recent performance in the fixed income markets has brought tax-loss harvesting into sharper focus. Read why harvesting losses now may help investors mitigate tax erosion and enhance overall wealth.