Credit Currents

The economic backdrop remains broadly resilient, even as policy rates and government bond yields move higher.

Income continues to support returns, but dispersion is increasing across liquid and private credit—making disciplined underwriting and manager selection increasingly important.

Markets are now navigating a more complex risk environment. Geopolitical developments add another layer of uncertainty, but the extent of impacts is still unknown.

With peak macro headwinds likely behind us, the focus shifts from broad disruption to sharper differentiation. In this environment, income still stands out — but so does the need to be selective.