Factors Are Driving Global Yields Higher in 2026: Active Investing Can Help

Core Insights - Global yields are expected to rise in 2026 due to various market challenges and a competition for capital [1] - Active investing strategies can help investors navigate the changing yield landscape and enhance fixed income allocations [1] Group 1: Factors Driving Yields - A global competition for capital is contributing to higher yields this year [1] - Continued government debt sales to finance deficit spending are steepening the yield curve [1] - The influx of artificial intelligence-related debt supply is leading to an increase in new bond issuance, which is higher than previously anticipated [1] Group 2: Investment Opportunities - A healthy growth environment presents notable credit opportunities for investors [1] - Emerging markets debt may also offer potential investment opportunities [1] - Active managers can provide better scrutiny of individual debt issuers, which is crucial for identifying durable issuers in the credit market [1] Group 3: Active Investing Strategies - Active investing can adapt to the shifting yield curve and key market events [1] - Funds like the T. Rowe Price U.S. High Yield ETF (THYF) provide targeted, active bond exposure in high yield [1] - Flexibility in portfolios is essential for adapting to a changing yield curve, making active strategies appealing [1]