“As the Fed moves to reduce policy guidance, uncertainty over the short-rate path is likely to rise, creating additional volatility along the yield curve”
European private loans should not be read as simply another form of private credit. They are better understood as, on average, high-quality investment grade bank lending, with embedded illiquidity premia well suited for a tight spread environment.
Emerging markets debt is entering a new phase shaped by a more fragmented, multipolar world. Geopolitical uncertainty, higher energy prices and shifting global rate expectations have tested markets. Despite these headwinds, emerging markets debt showed greater resilience in the first half of 2026 than in past cycles, supported by stronger policy frameworks, improved fundamentals and deeper local investor bases.