2026 Market View: Global Investment Grade

Dec 04, 2025

Andrzej Skiba, Head of US Fixed Income and BlueBay Senior Portfolio Manager, summarises the market in 2025 for the asset class and gives his thoughts for 2026.

  • 2025 was a rollercoaster, but ended positively for global investment grade markets, with strong returns driven by US Treasury rallies and credit spread tightening.
  • Markets recovered from April’s tariff-induced volatility through eased trade tensions, rate cuts, and US economic resilience.
  • 2026 we see possible high single-digit returns, fuelled by accelerating US growth, elevated yields, spread compression, and potential central bank rate cuts, with carry income as a key contributor.
  • A core 2026 theme is balancing record credit supply (from M&A and AI-linked debt issuance) against investor demand, including several trillion in money market balances shifting into longer-term investments.
  • Return dispersion is expected to rise due to disparities in consumer health and business model viability, creating alpha opportunities for active investors.


Watch all our 2026 Market Views