Fixed Income

Nothing beats an 11-hour flight back to London for evaluating the outlook for collateralised loan obligations (CLOs), having attended the Opal CLO conference in California.

Looking ahead, we expect continued inflows, rising demand, and reduced supply to support EM hard-currency bonds. For EM local-currency bonds, we believe the current macroeconomic environment remains favorable, despite our conviction in a USD bear market being lower than it was a few months ago.

As we approach 2026, Fixed Income markets are shaped by weaker fundamentals, though lower uncertainty may reduce the likelihood of a catastrophic decline. That said, volatility will remain a defining feature. We believe the year ahead holds great potential for active managers who remain steady at the wheel: cautious but nimble.

The surge in AI capex is driving a rapid increase in bond issuance in the investment grade market. High yield bonds are on track to generate solid returns for 2025; we continue to favor telecoms and energy. The Swiss bond market has once again moved to its own rhythm.

In a K-shaped economy, high-income earners and large corporations thrive while low-income groups and small businesses struggle. This divergence challenges the Fed, as its policy decisions traditionally rely on GDP, unemployment rates, and inflation. However, K-shaped dynamics are often hidden behind these aggregate measures.

As we approach the end of a year that has seen risk assets shrug off US tariffs and mounting concerns over AI-driven tech valuations, TwentyFour Asset Management’s portfolio management team selects the seven key questions that they believe will define 2026 for fixed income investors.

The terms private credit and life insurance have appeared together in multiple negative headlines in recent weeks, and to casual observers the link between the two may not be immediately obvious.

The wait is over. UK Chancellor Rachel Reeves delivered her much anticipated November Budget on Wednesday, ending weeks of rumours and leaks that had created a general feeling that all measures were on the table – now investors, businesses and taxpayers alike can fill in the empty cells on their spreadsheets and calculate what’s left.

The private credit exposure of life insurance firms, particularly those with private equity (PE) owners, has been drawing the market’s attention in recent weeks.

For much of the past year, the AI story in markets has been one of unrestrained optimism. Firms have been racing to spend on chips, infrastructure, and data centres, and equity valuations have generally rewarded those with the boldest capital expenditure plans.

Discover how developed and emerging market corporate bonds may offer stability, diversification, and alpha opportunities. With yields at multi-year highs and improving fundamentals, our experts believe now is the time to unlock the hidden potential of corporate bonds in your portfolio.

October brought the first serious bout of volatility in corporate bond markets for some time, with two high-profile US bankruptcies raising fears of a more systemic issue in credit.