- 30 July 2026
Making sense of credit market dispersion
- INSTITUTIONAL INVESTORS
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- 30.07.26
After a challenging Q1, credit markets staged a broad-based recovery in Q2, resulting in positive returns for the first half of 2026.
All parts of the asset class posted positive returns over Q2, as a stronger appetite for risk drove a tightening of credit spreads. Dispersion remained a defining theme across credit markets, in part explained by divergent sovereign bond market moves. US Treasury yields rose on inflation concerns and a hawkish Federal Reserve, while European yields fell as oil prices eased on optimism around a resolution to the US-Iran conflict, easing the pressure on inflation.
European assets outperformed their US counterparts in most credit asset classes.
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