Portfolio Insights: Investment Grade – April 2026
TwentyFour Asset Management’s Jack Daley reflects on a strong start to 2026 for investment grade credit, before geopolitical escalation in the Middle East drove increased volatility later in the quarter and shaped market conditions.
Key takeaways
- Investment grade credit was supported early in the year by strong inflows and resilient market sentiment, with new‑issue supply readily absorbed, before the Iran conflict became the dominant source of volatility later in the quarter.
- The energy shock linked to the Middle East conflict pushed government bond yields higher, driving a largely rate‑led sell‑off in fixed income, with investment grade spreads widening modestly.
- Corporate fundamentals remain strong and starting yields elevated, with carry continuing to play an important role in fixed income performance as markets remain sensitive to geopolitical developments.
