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Our views 01 March 2026

Crunching credit podcast – February 2026

10 mins

Global high yield markets had a resilient start to 2026, with spreads tightening and recent geopolitical shocks failing to dent overall performance. Despite volatility in oil, gold and the US dollar, high yield bonds held firm, supported by steady earnings and robust market fundamentals.

A major theme has been AI‑driven disruption in the technology sector. While tech remains a small part of the high yield universe, concerns over legacy software models and leveraged balance sheets have led to notable underperformance in software and data‑services names.

In this episode of Crunching Credit, Stephen Tapley, Senior Fund Manager, and Ewan McAlpine, Investment Director, explore why software companies are under pressure and discuss the broader high yield outlook amid ongoing geopolitical disruption.

Recorded: 25 February 2025
Duration: 10 mins

 

The value of investments and the income from them may go down as well as up and is not guaranteed. Investors may not get back the amount invested. The views expressed are those of the speaker at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.