Insights

The U.S. Treasury curve shifted higher across the maturity spectrum with yields rising approximately 40bps in the 2- through 10-year range and 30bps on the long end. The move reflected persistent inflation pressures and a shift in market sentiment regarding the likelihood of a Federal Reserve cut in 2026.

IG corporates faced a volatile start to 2026, with spreads widening after historically tight levels.

As economic conditions shift and monetary policies change, we are generally seeing more divergence amongst issuers and opportunities to add value through credit selection.

Evolving secular trends combined with maturing business cycle dynamics and elevated valuation multiples would suggest investors take a more defensive stance in their equity portfolios.

In February, Treasury yields fell across the curve, and the 10-year yield declined 30 basis points, as buyers turned to Treasuries amidst potential signs of the disinflationary power of AI, rising geopolitical tensions and worries about private credit.

Treasury yields rose modestly across the curve during January, with the 2-year and 10-year maturities seeing increases of 5 basis points, as markets adjusted to shifting economic data.

California’s proposed wealth tax faces significant political, legal, and administrative obstacles and is unlikely to be enacted.

AI-driven data center growth is increasing water demand, especially in water-stressed regions, with electricity generation driving most water use.