Fixed income markets enter the second half of 2026 with a broadly supportive backdrop, but also clear risks. Growth remains resilient, credit fundamentals are solid, and demand for income is still strong.

The global credit landscape is evolving rapidly, shaped by persistent inflation concerns, shifting monetary policy, resilient corporate fundamentals and volatility. Against this backdrop, blue-chip corporate issuers are increasingly being seen as less risky than many sovereigns. However, in this uncertain context, returning to fundamentals, including issuer quality and diversification is key.

An analysis of the forces driving UK borrowing costs to multi-decade highs and what it would take to bring them back down.