Credit Chronicle: Q2 2026
Our credit experts review how credit markets fared in the second quarter of the year and share the latest scorecards for the global credit universe.
Global
From the Income Desk
Rethinking diversification
Why is diversification in fixed income portfolios more important than ever, and what’s the best way to achieve it today? Ellie Clapton and Darpan Harar explore the key considerations in the current environment.
6 May 2025
7 minutes
Ellie Clapton
Darpan Harar
With traditional ‘safe-haven’ assets behaving very differently today, investors need to reassess their approach to portfolio diversification. In this conversation, Ellie Clapton and Darpan Harar discuss smarter ways to achieve the same goals, including diversifying a portfolio’s safety net, broadening geographical horizons, and taking care not to double up on the same risk.
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Growth momentum is building across the Chinese economy, not solely in technology-linked sectors. We see opportunities for investors to align with the country’s ongoing structural transformation.
The revenge of the old economy
AI is driving new demand for commodities, while supply remains disciplined – supporting the outlook for natural resources equities.
August in review
August was a strong month for risk assets, with equities extending their advance as gold surged on renewed fiscal and inflation concerns. Resilient earnings, highlighted by another blowout Nvidia report, drove US and European equities to fresh records, while sharp moves in bond yields kept fixed income markets volatile. Gold jumped 10% as investors sought protection against inflation and financial repression, while emerging markets extended their gains on the back of the AI trade.
EM still in its multi-year ascent
It has been another strong year for EM equities, which has left many investors pondering where exactly we are in this cycle. Archie Hart and Varun Laijawalla explain why there is scope to capture a re-rating that they believe has considerable upside from here.
Picture this: The AI financing boom shakes up credit markets
The AI theme in credit markets is evolving rapidly. New financing packages can provide better compensation for risk but they require careful diligence.
Emerging market debt – navigating headwinds, eyeing the horizon
The headwinds facing EM debt today are cyclical and manageable, with mispricing and divergence across countries creating a fertile hunting ground for active investors. Crucially, the strength of structural tailwinds behind the asset class is undiminished.
Emerging Market Debt Indicator - July 2026
Our EM Debt team shares its latest outlook and positioning across the investment universe.
A prolonged El Niño could complicate the path back to lower inflation
Overlapping pressures across agriculture, fertiliser and energy markets could create fresh inflationary risks this year, with wide ranging implications for commodity markets, monetary policy and emerging market assets.
July in review
Global markets split sharply in July, as a reassessment of AI valuations collided with a renewed oil shock. Doubts over AI capex and monetisation weighed heavily on technology and semiconductor stocks, while the collapse of the US-Iran agreement drove oil prices sharply higher, lifting energy, defence, and value-oriented markets. The result was one of the sharpest rotations in market leadership so far this year.
Multi Asset Strategy Quarterly – July 2026
Ninety One's multi-asset growth team provides insights into the macroeconomic environment that informs our investment outlook for the coming quarter. This includes concise summaries of our asset class views.
Beyond the one-way trade
For years, capital has gravitated to the US. A one-way trade powered by tech dominance and economic heft. But as the world tilts on its axis, the next cycle is unlikely to resemble the last, and the investment map is beginning to redraw itself.
AI and the return of US equity supply
A shrinking supply of shares has flattered US equity returns for years. The AI issuance boom is putting that into reverse.
Credit Chronicle: Q2 2026
Our credit experts review how credit markets fared in the second quarter of the year and share the latest scorecards for the global credit universe.
Lessons from Latin America’s elections extend far beyond the ballot
Recent election results point to a political pivot with positive implications for debt markets. Dynamics in this key region are reflective of broader shifts across the maturing EM debt market.
Emerging Market Debt Indicator – June 2026
Our EM Debt team shares its latest outlook and positioning across the investment universe.
Four themes shaping the next phase of energy markets
Markets are pricing in a rapid normalisation of Middle East oil supply following the US-Iran conflict. The talk at a resources industry conference highlights that risks remain.
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