MacKay Shields Fixed Income Quarterly Outlooks – 3Q26

Explore MacKay Shields' specialty fixed income outlooks:

• Macroeconomic Outlook: "Despite higher energy prices, geopolitical tensions, and persistent inflation, the U.S. economy has remained resilient. As key headwinds begin to ease, investors should focus on the evolving balance between continued growth and lingering inflation risks."

• Global Fixed Income Outlook: "With yields still attractive but credit spreads offering little room for error, the second half of 2026 may reward disciplined duration positioning, high quality credit, and selective opportunities across emerging markets."

• Emerging Markets Outlook: "Easing tensions in the Middle East have improved market sentiment, but geopolitical uncertainty, inflation risks, and divergent central bank policies continue to shape opportunities across emerging markets."

• High Yield Outlook: "AI is reshaping more than technology, it’s reshaping high yield markets. With tight valuations, rising issuance, and evolving credit dynamics, active positioning matters more than ever."

• Convertibles Outlook: "AI related performance and record issuance have fueled a strong year for convertibles, but disciplined security selection remains critical as valuations become more demanding."