Multi-Sector Bond Quarterly Update – January 2026

Key takeaways

• Q4 saw elevated volatility due to geopolitics, AI concerns, and US credit events involving Tricolour and First Brands, however markets proved resilient and sell-offs were largely short-lived.
• Economic data was broadly supportive for fixed income investors, with cooling inflation and positive GDP growth. Although there were signs of weakening consumer spending in the US, the economy was robust overall and corporate balance sheets were healthy.
• Looking ahead to 2026, we remain optimistic on credit and believe fixed income investors can expect another strong year of performance in 2026.