Despite a year of numerous challenges, the global economy has been resilient and valuations across major asset classes remain elevated. Against this backdrop, some economic signals are now indicating potential softness, which could challenge these stretched valuations.
After stronger-than-expected demand for credit in 2025, markets again look likely be able to handle an increase in new issuance of euro corporate bonds; overall, returns in the investment-grade and high-yield segments should be attractive, but market volatility and performance dispersion mean rigorous security selection will be essential.
Fixed Income Perspectives outlines the current macro and market views from across Capital Group’s extensive fixed income team and offers insights on investors’ bond exposure against an ever-changing backdrop.