2026 Market View: Multi-Asset Credit

Dec 04, 2025

Findlay Franklin, BlueBay Portfolio Manager, summarises the market in 2025 for the asset class, and gives his thoughts for 2026.

  • 2025 presented significant challenges for portfolio managers despite strong year-end returns for risk assets and fixed income. Multi-Asset Credit strategies helped investors navigate downside risks while capturing upside opportunities.
  • Emerging markets exceeded expectations, with local markets benefiting from dollar weakness and aggressive rate cuts, while hard currency returns relied on high-conviction, bottom-up stock selection in countries.
  • Convertible bonds excelled by providing convexity in the AI sector and downside protection, supported by record issuance.
  • The 2026 macro environment appears favourable for fixed income, with resilient U.S. growth, expected Fed rate cuts, and European green shoots aided by fiscal stimulus, meaning Multi-Asset Credit remains a dynamic approach to capitalize on global opportunities.
  • Flexibility is critical as U.S. exceptionalism and dollar dominance face challenges, with investors increasingly scrutinizing currency hedges and diversifying globally amid improving sovereign balance sheets in emerging markets.
  • Active management will be essential in 2026 due to tight fixed income index spreads, requiring rigorous bottom-up name selection to balance yield and default risk within a broader top-down macro framework.


Watch all our 2026 Market Views