Noah Wise, senior portfolio manager and head of global macro strategy at Allspring Global Investments, sees this as an opportunity to capitalize on the changing monetary policy landscape. He is focusing on shorter-term U.S. Treasury yields.
According to Wise, who recently spoke with CNBC on 'ETF Edge,' the potential for yields over 4% in the front end of the curve offers a compelling return. This return comes with relatively low risk. Allspring primarily manages fixed income, money markets, and stocks. Clients include financial advisors, corporations, and institutions. The firm is adjusting its strategies to take advantage of this shift.
Opportunities in credit and emerging markets
Beyond U.S. Treasurys, Wise also sees strong potential in the credit market. He expressed a preference for U.S. credit, whether investment-grade or high yield, over European credit at this point. With solid macroeconomic fundamentals, the U.S. credit market offers a more attractive playing field.
Wise is also exploring opportunities in emerging markets, particularly Latin America, where he points to yields in the double digits. He emphasized that despite geopolitical uncertainties, investors can still achieve attractive yields through a well-diversified approach.
Fed decision doesn't shake strategy
Wise's outlook has not been affected by the Fed's recent decision to hold rates steady. In a special note to CNBC, he wrote that volatility in the short-end of the yield curve is a good example of how to capitalize on uncertainty. Allspring's strategies are being adjusted to take advantage of that fluctuation.

