Viewpoints

Despite policy shifts and global uncertainty, markets remain in a ‘Goldilocks’ state—resilient growth without recession. Positive returns remain across major asset classes, while AI-driven investment and structural megatrends signal opportunity.

Tight spreads meet elevated all‑in yields as policy uncertainty, AI capex, and uneven growth set the stage. We see selective opportunities across High Yield, CLOs, IG Credit, and EM Debt—with 2026 shaping up as a year for rigorous credit picking.

Direct lending isn’t fading—it’s evolving. In this Q&A, Orla Walsh shares her insights on growth, competition, and what disciplined managers need to know as the market matures.

The market is shifting toward one where value is led by real estate fundamentals, but it's important to “spend time in the tails” as structural changes introduce a broader range of potential outcomes.

Europe has managed to weather various geopolitical storms this year, but the hoped for recovery in property investment has stalled. With property pricing also treading water, the opportunity to enter at the start of a new property cycle has been extended.

High yield continues to be a credible source of income and diversification in today’s environment—but broad market beta is unlikely to deliver outsized returns, making security selection and disciplined positioning paramount.

EM equities have faced significant headwinds over the past decade, but recent developments suggest a turning point may be in progress. So far, 2025 is proving to be promising, as EM equities have delivered double-digit absolute returns and have outperformed developed market equities.

CRE valuations held steady in the second quarter, though transaction activity was subdued amid economic uncertainty and periods of market volatility following “Liberation Day”.

Global geopolitical uncertainty has postponed the hoped-for European real estate recovery this year. However, while macro risk is high, property market risk is low—and the pause in recovery arguably extends the opportunity to invest near the start of a new property cycle.