FICC Focus

Elina Theodorakopoulou, a Managing Director and EM portfolio manager at Manulife Investment Management, discusses emerging markets' fixed income landscape. She highlights the impact of upcoming elections in various countries and the factors driving year-to-date performance including carry and resilient fundamentals. Theodorakopoulou also examines the state of central bank policies, the appeal of frontier markets, and the resurgence of local currency demand. Finally, she addresses medium-term concerns like inflation, geopolitical tensions, and upcoming U.S. midterms.

Richard Litton, President of Harbor Group International, dives into the current state of US commercial real estate. He discusses the anticipated stabilization in 2026 and the challenges of loan restructuring amid an affordability crunch. Litton emphasizes the significance of location in the office market recovery and identifies strong demand in the multifamily sector, especially in the Sunbelt. He also highlights the risks of economic softness and inflation while outlining opportunities in niche markets like student and senior housing.

In this insightful discussion, guests dive deep into global credit dynamics. Jason Lee highlights the decline in China's dollar bond market and India's potential for strong performance in 2026. Tim Tan unpacks the intricacies of Panda and Dim Sum bonds amid currency risks in Asia. Basel Al-Waqayan forecasts significant growth in the GCC's dollar issuance, emphasizing its rising prominence in emerging markets. Reto Bachmann explores the European structured credit landscape, detailing trends in CLOs and covered bonds. A comprehensive look at the evolving credit market awaits!

Stephen Chiu, Chief Asia FX and Rates Strategist at Bloomberg Intelligence, shares insights on the bullish outlook for the Chinese yuan driven by favorable trade conditions and converging policies. Meanwhile, Davison Santana, Senior Latam FX Strategist, highlights the Mexican peso's superiority over the Brazilian real, citing lower political risks and market liquidity. The discussion also covers potential gains for the Australian dollar and a positive view on the Hungarian forint, creating a comprehensive picture of global FX dynamics leading into 2026.

In a riveting discussion, Jennifer Selendy, founding partner of Selendy Gay and a seasoned litigator in bankruptcy and liability management, shares her insights on the antitrust challenges surrounding creditor cooperation agreements. She reveals the complexities of LME litigation, highlighting surprising early lessons. Additionally, she discusses excluded lenders' tough choices, the pressure on private equity sponsors, and the potential for future litigation around NDAs. As the market evolves, Selendy anticipates ongoing legal creativity in restructuring absent major reforms.

Will Hoffman, a rates strategist at Bloomberg Intelligence specializing in U.S. and Canadian rates, joins Ira Jersey to dissect the future of the U.S. Treasury market. They discuss potential Fed rate cuts below 3%, a bull steepening yield curve, and the implications of fiscal policies on deficits. Hoffman explains the Fed's shift to a net-neutral balance sheet while detailing rising demand for T-bills. The conversation also highlights how supply and seasonal factors might influence short-end risks and the overall yield curve outlook through 2026.

In this insightful discussion, Ashwin Palta, Global High Yield Portfolio Manager at BNY, and Iain Stealey, International CIO at J.P. Morgan, explore the intricate world of credit amidst tightening conditions. They debate strategy shifts towards high-quality high yield versus investment grade bonds. Iain highlights the dovish Fed outlook and the implications for fixed income, while Ashwin discusses low default expectations and potential M&A activities. The duo also analyzes risks from inflation and shifting market dynamics, offering valuable insights for navigating 2026.

Rob Slater, CEO of Cognitive Credit, shares insights on automating credit analysis with AI. He discusses how businesses can start low-risk AI experiments to enhance financial data extraction. The conversation dives into the tech gap between equity and credit, emphasizing the need for a tailored credit data strategy. Rob also highlights his journey from banking to founding his firm, the challenges of scaling, and the future of credit teams embracing machine-generated analysis. He's optimistic about the balance between standardization and bespoke deals in the industry.

In this engaging conversation, Stephen Dover, Chief Market Strategist at Franklin Templeton, shares insights on the future of global growth and asset allocation. He predicts three rate cuts in 2026 and discusses the potential for a 10-year yield between 4-4.5%. Stephen emphasizes the importance of diversifying equity exposure beyond AI, highlighting investment opportunities in emerging markets. Additionally, he explores the implications of stable interest rates on valuations and champions private markets for future gains.

Steve Ketchum, the founder and CEO of Sound Point Capital—an innovative player in alternative credit management—shares insights into the evolution of credit strategies. He delves into the importance of having more ideas than capital, the rise of private credit, and how it can enhance financial stability post-2008. Ketchum discusses the intricacies of commercial real estate and CLOs, and the recent credit events that have sharpened investor diligence. He also highlights his philanthropic efforts, underlining a commitment to community and support for first responders.