In recent history the UK equity market has lagged global developed markets, yet there are signs that the tide is turning. Some of the characteristics that previously held the UK market back, including its sector mix, may now be working in its favour.

From debt-weighted indices and changing fundamentals to market inefficiencies and forced trading, credit markets present distinct challenges for passive investors and opportunities for active management. We explore some of the key considerations.

Technology creates value. Investors benefit by identifying and owning the businesses best placed to capture it.

Why the case for owning IG as an income asset has rarely been stronger

The decline in UK IPOs is part of a broader global trend, but the UK has been hit particularly hard. With fewer companies listing, more choosing overseas markets, and a steady stream of takeovers, the question is no longer whether there is a problem, but how serious it has become and whether there is a realistic path to recovery.

The label "junk bonds" has been around long enough to subtly influence how many investors think about the high yield market - as something inherently reckless, a place you go when you are willing to gamble. After 26 years in credit markets, 13 of them focused specifically on high yield, I find that characterisation increasingly misleading, and substantially wrong.

As 2026 begins, financial markets appear calm, but beneath the surface dynamics are shifting. Inflation is easing, growth stabilising, and rate cutting cycles are nearing completion. Yet, this year will be defined less by broad macro trends and more by dispersion, balance sheet shifts, and policy nuance. 

For investors, this environment demands precision. Success will hinge on understanding key drivers and positioning portfolios accordingly. 

The Reserve Bank of Australia (RBA) raised interest rates by 0.25% to 3.85% on 3 February 2026, becoming the first major developed central bank to break from the global trend of rate cuts. The RBA had appeared reluctant to ease rates over the past year - only beginning rate cuts in February 2025 and delivering a modest 0.75% of easing by August before pausing. By historical standards, this cutting cycle was both short and shallow and the pivot back to hikes has been equally swift.

In the latest edition of Strategic Thinking Out Loud, Alex Pelteshki, Investment Manager, explores how the wave of rolling recessions – sweeping through sectors from Energy to Software – is reshaping opportunities across credit markets. He discusses why this environment highlights the advantage of a concentrated, index-agnostic active management approach that is focused on precise security selection.

Financial markets enter 2026 on solid footing. Resilient economic conditions, robust corporate earnings growth and sustained enthusiasm for large-scale investment in artificial intelligence (AI) should support risk assets throughout the year. Anticipated US interest rate cuts should provide additional tailwinds.

When investors want to reduce risk, where do they turn?  After almost two years of chasing returns, many now ask: is it time to add something more defensive? 

The vast majority of companies have now reported their second-quarter numbers, and the good news is that things looked pretty solid overall.

Credit markets are flashing a signal that hasn’t appeared in decades: corporate bonds are trading as if default risk has virtually disappeared. This compression in credit spreads – the extra yield investors demand to hold corporate debt over government bonds – has created either an extraordinary opportunity or a dangerous trap.

With credit spreads hovering near generational lows, Alexander Pelteshki, Investment Manager, breaks down the current state of global credit markets in the latest edition of Strategic Thinking Out Loud. He explores the drivers behind the rally and outlines a cautious yet opportunistic approach to managing risk and yield in fixed income portfolios. 

As we reach the middle of 2025, we face a set of circumstances that are both fairly unique and strangely familiar. Think ‘bond vigilantes’, conflict in the Middle East, US deficit concerns, widespread higher fiscal spending and a UK Labour Government. Sound familiar?