Viewpoints

Europe’s real estate recovery has been postponed, as Middle East tensions revive inflation anxieties. However, any future ECB rate hikes are likely to be much more modest this time. Even so, the market remains resilient, with chronic shortages of modern space set to worsen as development activity continues to fall.

The maturity wall facing U.S. high yield bond issuers is sizeable. But given the market’s composition today, the wall appears less daunting for issuers—and, for investors, it’s helping shape potentially compelling opportunities.

At PEI’s annual secondaries roundtable, Ian Wiese shared perspectives on the global secondaries market, which reached $240 billion in transaction volume in 2025, up 48% year over year.

Technology sector analyst, Brad Lewis unpacks how AI is impacting the outlook for credit markets across software and other sectors. He provides insight into the Barings' team's framework for parsing winners from losers, and talks about what's next for AI.

Macro shocks reinforce the importance of asset-level and micro-location relevance in a market defined by dispersion.

Dispersion and volatility have reshaped relative value across the CLO market. Structural protections and floating‑rate exposure remain supportive, but outcomes increasingly depend on credit underwriting, manager discipline and an ability to navigate a more selective opportunity set.

High yield investors are navigating a more complex backdrop, but fundamentals remain resilient and income continues to look compelling. Markets have absorbed a steady stream of risk events, but the environment calls for discipline rather than complacency.

This month, we’re stepping back to focus on what matters most for long-term investors. In private credit, outcomes are often driven by differences in approach—how capital is deployed, how portfolios are constructed and how risk is underwritten across cycles.

Energy shocks and geopolitical risk are driving volatility across markets, but uncertainty also creates opportunity. With sentiment and valuations showing signs of dislocation, we see scope to move cautiously beyond core positioning as fundamentals remain broadly constructive.