The macro backdrop for bonds remains constructive—in our view, yields are attractive in real terms—but navigating H2 2026 requires careful attention to duration risk, fiscal dynamics, and idiosyncratic credit risk.  The balance of 2026 remains an income story more than a capital gain trade.

  1. A hawkish Fed and a flatter curve
  2. Credit spreads leave little margin for error
  3. Caution in CMBS conduits, opportunities in SASB
  4. Carry is the story in leveraged credit, but caution is warranted
  5. Emerging markets is still a bright spot, but country specific
Download Insights

By subscribing you are consenting to receive personalized online advertisements from New York Life Investment Management.

All investments involve market risk, including loss of principal. 

Bonds are subject to interest-rate risk, credit risk, and potential loss of value if rates rise.

This material reflects the opinions of MacKay Shield Global Fixed Income Team, not necessarily MacKay Shields LLC. Opinions are subject to change without notice and are for informational purposes only.

This is not investment advice or a recommendation. Information is believed to be reliable but not guaranteed.

Forward-looking statements are as of their date and may not be updated.

Reproduction requires written permission.

©2021, MacKay Shields LLC.

Past performance is not indicative of future results, and there is no assurance that investment objectives will be met.