MacKay Shields Fixed Income Quarterly Outlooks – 2Q26

Diverging macro conditions and sector dispersion highlight the importance of selective exposure across rates, credit, and EM. Improved yield levels support return potential, but outcomes will depend on active positioning across duration, credit quality, and sector allocation.

Explore MacKay Shields' specialty fixed income outlooks:

• Macroeconomic / GFI Outlook - "Fixed income is entering a new phase. Higher yields and increased volatility are improving return potential, with income back at the center of outcomes. See where opportunities are emerging in our 2Q outlook."

• Emerging Markets Outlook - "Geopolitical risk is rising again as the Iran conflict ripples through energy and supply chains. Emerging markets are showing greater resilience, with performance driven more by country-level fundamentals."

• High Yield Outlook - "After positive returns in January and February, it seemed all but certain that the ICE BofA US High Yield Index would extend its streak of 13 consecutive positive quarters, its longest since 1997."

• Convertibles Outlook - "Convertibles delivered positive performance despite declining equities and rising rates—reinforcing their role as a differentiated allocation in uncertain markets."