We surveyed 300 senior fixed income decision makers at institutional asset owners across North America, Europe and the Middle East (EMEA) and Asia Pacific during February to early March 2026. Subsequent interviews with responders have helped to capture any shift in attitudes caused by the Iran conflict.
Here are three highlights…
Increased appetite for fixed income
Amid rising macroeconomic uncertainty, 31% of asset owners intend to increase allocations to liquid fixed income over the next 12 months.
Q: How did your institution adjust its overall allocation to liquid, public fixed income over the last 12 months and how are you planning to adjust your overall allocation to liquid, public fixed income over the next 12 months, if at all?
Investment grade (IG) credit favoured for new allocations
Our survey results find IG credit is experiencing increased demand versus last year, with 31% of asset owners planning to increase exposure over the next 12 months. The Iran conflict complicates the narrative but some investors highlighted that spread volatility could present opportunities.
Q: How do you expect your organisation's allocation to the following fixed income sectors to change over the next 12 months, if at all?
Strong demand for EMD
Demand for EMD continues to increase, with nearly twice as many investors planning to increase their allocations to the sector over the next 12 months as in our 2025 survey.
Q: What are your expectations for real yields in the following emerging market debt (EMD) sectors over the next 12 months?
See the full details
Download the report for more detail, including:
- Bond outlook and positioning: Agility and diversification are prioritised
- Public credit: Focus shifts to Europe and Asia-Pacific
- Private credit: Robust appetite remains as investors broaden their focus
- EMD: Demand hits new highs amid strong performance expectations
Explore our earlier reports to discover how fixed income attitudes have evolved:
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Past results are not a guarantee of future results. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.