We have seen a softening in market momentum led by US equities and based around two factors. Firstly, there are reduced expectations for an interest rate cut in the aftermath of the October’s Federal Reserve (Fed) meeting.

With valuations stretched, macro headwinds blowing and spreads near post-global financial crisis tights, our portfolio managers look at the state of the IG market

After an eventful 2025, what might be in store for 2026? Elsewhere, despite a few hurdles throughout the year, core investment grade markets are ending the year tighter than they started.