BondBloxx Releases 2026 Fixed Income Outlook

Core Insights - BondBloxx Investment Management emphasizes the importance of precision in fixed income investments and identifies opportunities in private credit, BB and CCC rated corporates, and intermediate Treasuries for 2026 [1][2] Market Outlook - The company anticipates continued market volatility in 2026, suggesting that fixed income can provide income and mitigate volatility [2] - Strong fundamentals in both public and private credit are supported by healthy balance sheets, manageable debt maturities, solid U.S. economic growth forecasts, and lower interest rates [2] Investment Opportunities - Specific opportunities highlighted include: - U.S. Corporates: Favorable conditions for U.S. corporate bonds, particularly focusing on BB and CCC rated high yield bonds [7] - Private Credit: Offers compelling yields and low volatility, presenting an attractive alternative to equities and other fixed income assets [7] - Emerging Markets: Focus on short- to intermediate EM sovereign debt due to elevated yields and resilient economic conditions following a strong year in 2025 [7] Federal Reserve Insights - The Federal Reserve is expected to proceed cautiously with interest rate policy, with attention on the leadership transition from Chairman Powell [3]