Insights

Artificial intelligence is reshaping capital investment, corporate balance sheets, energy and water demand, labor, and supply chains, while raising questions around governance, privacy, human rights, and the distribution of economic benefits.

After widening in the first quarter on heightened geopolitical risk and an oil shock, corporate bond spreads staged a comeback on a ceasefire in Iran, solid U.S. economic data, and a strong first-quarter earnings cycle.

The investment grade Technology sector is in transition, moving from a net cash position to potentially the largest borrower in the IG corporate bond market.

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

As we enter 2026, we are of the view that the next 12 months may be more about total return and less excess return.