Fixed income in focus: Term premium and credit spreads

Recent policy actions, shifting regulatory dynamics, and a changing macro backdrop are influencing fixed income opportunities in 2026. We’ve selected two short excerpts from our recent economic and market outlook webcast to give advisors quick insight into these developments.

In the first video, Sara Devereux, CIO VCM and global head of fixed income, explains how policy efforts and regulatory reforms are helping contain the term premium. In the second, she discusses why disciplined security selection is essential to finding value when credit spreads are tight.

Watch these key takeaways on current fixed income trends.

Disclosures:

All investing is subject to risk, including possible loss of principal.

Past performance is not a guarantee of future results.

Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.