Compass: Q2 2026

• Volatility changes pace Fixed income markets have moved from a phase of acute and indiscriminate disruption to a prolonged phase of re-adjustment. • Competing risks Inflation and central bank tightening is the immediate risk, but risks to economic growth pose a longer-term challenge. • Carry is still core Despite the turbulence, fundamentals so far remain intact and carry remains the driver of fixed income returns. • Protection and selection Investors should focus on selection for credit quality and resilience rather than exposure to broader market moves (beta). • Emerging market...