Bonds back in focus as ETF investors focus on flows and the Fed decision

Watch on YouTube ↗  |  July 27, 2026 at 22:01  |  21:49  |  CNBC
Speakers
Noah Wise — Senior Portfolio Manager, Allspring Global Investments
Christian Magoon — CEO, Amplify ETFs

Summary

With a Fed meeting, earnings, and geopolitical tensions ahead, bond ETF experts Noah Wise and Christian Magoon see attractive yields across fixed income. They favor front-end bonds, US credit over Europe, MBS, and Latin American debt, while noting strong flows into covered-call bond ETFs and cash-like SOFR products. They advise watching Fed signaling and AI-related debt issuance.

  • High-quality bonds yield 5-5.5%, high-yield around 7-7.5%, offering mid-single-digit returns.
  • Front-end of yield curve provides over 4% with limited downside risk.
  • US credit preferred over European credit due to stronger fundamentals and AI investment cycle.
  • Mortgage-backed securities are attractive on a spread basis.
  • Latin American emerging-market debt offers double-digit yields via energy exporters.
  • Covered-call bond ETFs like LQDW and TLTW are drawing interest for 12% target distributions.
  • SOFR rate ETFs are used as a 3.6% cash alternative amid rate uncertainty.
  • Investment-grade flows are outpacing high-yield as credit spreads offer little extra reward.
  • AI-driven debt growth warrants monitoring for rating and relationship risks.
Ideas
Noah Wise Senior Portfolio Manager, Allspring Global Investments 1:14
High-quality and high-yield yields very attractive.
High-quality bonds yield 5-5.5% and high-yield bonds yield 7-7.5%, which should generate mid-single-digit returns. Investors should not overthink it and capture these attractive yields now.
US Investment Grade Bonds US High Yield Bonds HIGH
Christian Magoon CEO, Amplify ETFs 2:29
Covered call bond ETFs deliver 12% income.
Covered-call bond ETFs on investment-grade (target 12% distribution) and on long-dated Treasuries are in demand as a way to hedge fixed income and generate enhanced income in an uncertain rate environment.
LQDW TLTW MED
Christian Magoon CEO, Amplify ETFs 3:21
Cash-like SOFR ETF earns 3.6% safely.
A SOFR rate ETF with overnight duration provides a 3.6% yield and allows investors to remain neutral and liquid amid rate uncertainty and geopolitical risks.
USFR MED
Noah Wise Senior Portfolio Manager, Allspring Global Investments 4:32
Front-end yield curve offers 4%+ low risk.
The front end of the yield curve offers yields north of 4% with relatively low risk, and much of the downside is already priced in, making short-duration bonds attractive.
SHY MED
Noah Wise Senior Portfolio Manager, Allspring Global Investments 4:51
US credit superior to European credit now.
US credit fundamentals are stronger than Europe's, supported by an AI investment cycle and the US status as a net energy exporter, making US investment-grade and high-yield credit more attractive than European credit where spreads are tight.
European Credit MED
Noah Wise Senior Portfolio Manager, Allspring Global Investments 4:51
US credit superior to European credit now.
US credit fundamentals are stronger than Europe's, supported by an AI investment cycle and the US status as a net energy exporter, making US investment-grade and high-yield credit more attractive than European credit where spreads are tight.
LQD MED
Noah Wise Senior Portfolio Manager, Allspring Global Investments 5:04
MBS spreads over Treasuries are attractive.
Mortgage-backed securities are relatively attractive on a spread-over-Treasuries basis, offering an opportunity within fixed income.
MBB MED
Noah Wise Senior Portfolio Manager, Allspring Global Investments 6:36
Latin American debt yields double digits.
Emerging market debt, particularly in Latin America, offers double-digit yields, helped by energy exporters in those regions, providing attractive diversified income opportunities.
Latin American Bonds MED
Christian Magoon CEO, Amplify ETFs 8:43
Prefer investment grade over high yield bonds.
Investors are not getting enough extra reward for the risk in high-yield bonds, and flows show a preference for higher-quality investment grade, making investment grade bonds more attractive.
HYG MED
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This CNBC video, published July 27, 2026, features Noah Wise, Christian Magoon discussing US Investment Grade Bonds, US High Yield Bonds, LQDW, TLTW, USFR, SHY, European Credit, LQD, MBB, Latin American Bonds, HYG. 9 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Noah Wise, Christian Magoon  · Tickers: US Investment Grade Bonds, US High Yield Bonds, LQDW, TLTW, USFR, SHY, European Credit, LQD, MBB, Latin American Bonds, HYG