Concerns are growing over economic activity, political tension and policy uncertainty in the U.S., creating a challenging investment environment. Headlines throughout 2025 and so far in 2026 underlined this uneasiness; foreign investors were reportedly leaving U.S. markets in droves amid currency volatility and tariff-driven fears, possibly spelling the end of U.S. exceptionalism as we know it. Adding to these doubts is the spectre of an increasingly deglobalized world.
In this climate, separating rhetoric from reality is crucial. The world may be changing, but global private credit — whether corporate or asset-backed — remains an attractive opportunity set for those seeking diversified sources of stable income in an unstable time.
Institutional investors can build resilience with alternative credit by diversifying exposure across a range of asset classes and across the U.S. and Europe.
U.S. remains a rich source of opportunity despite new risks
Despite prolonged uncertainty throughout the country, the U.S. economy has demonstrated its ability to withstand shocks and beat pessimistic forecasts. Recent recession fears have given way to tangible optimism. U.S. GDP growth for 2026 is projected to outpace its G7 peers, according to the IMF’s World Economic Outlook. Corporate earnings remain robust, and default rates for U.S. credit, especially among higher-rated borrowers, remain overwhelmingly stable. Despite the U.S. dollar weakening through 2025 and into 2026, it continues to anchor international portfolios, providing depth and liquidity that few global markets can match.
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