Credit Chronicle: Q1 2026

• It was a volatile quarter for financial markets. Except for some higher-rated collateralised loan obligations (CLOs) and agency mortgage-backed securities (MBS), most credit markets posted negative returns, but behind the headline figures there were notable bright spots. • Fixed income markets came under pressure from both the rise in sovereign bond yields and a widening of credit spreads, as war in Iran sparked fears over the inflation and growth outlook. The European high-yield market was most affected, given the significant implications of the energy price shock for the region. • In the...