Well-known factors such as value and momentum are widely recognized to have predictive power. Advanced systematic approaches, however, seek to identify additional drivers of performance—including proprietary factors—to integrate into their multifactor models.
In a turbulent 2025 dominated by US trade policy shocks and geopolitical tensions, the global economy proved resilient. Fears of tariff-related slowdown and renewed inflation proved misplaced, as growth surprised to the upside and inflation continued to soften.
The backdrop for Europe’s bonds remains favorable—even as technological change creates new challenges.
Our playbook for 2026 aims to address real risks by expanding allocations in new directions.
As the private-credit market matures, it’s also becoming more accessible to a wider range of investors. But variation in outcomes has increased. In our view, that’s a byproduct of growing scale and competition.
Driven by a more predictable regulatory backdrop and a surge in large-scale deal flow, 2025 has delivered the strongest merger arbitrage returns since the post-pandemic boom. This resurgence, characterized by narrowing spreads and a notable lack of failed deals, has set a robust foundation for continued activity into 2026.
After a turbulent start to 2025 defined by US policy shocks, attention shifted to AI optimism and corporate fundamentals, with earnings and capex intentions often eclipsing traditional data releases. Despite these twists, returns were solid across asset classes.
Private credit is expanding beyond its traditional niche to finance major infrastructure projects for investment-grade corporate borrowers, a trend particularly notable among hyperscalers building AI infrastructure.
While the AI-driven rally in US mega-cap growth stocks grabbed attention in 2025, a very different story was unfolding far from Wall Street. Outside the US, from Europe to Japan, value stocks shed their perennial underdog status to stage a dramatic recovery—one that we think may just be getting started.
Municipal housing bonds are presented as a critical dual solution to America's deepening affordable housing crisis, especially as federal support diminishes. These tax-exempt bonds significantly lower financing costs for developers, making affordable units viable while offering investors compelling tax-exempt income and social impact.
The US dollar (USD) has weakened over the last few months, fueling strong emerging-market (EM) stock and bond returns in 2025. Now, with more clarity around tariffs and the record-long US government shutdown resolved, will the greenback strengthen and flip the script on EM? We don’t think so.
Despite the increasing need for retirement income security, many defined contribution (DC) plan sponsors hesitate to adopt new lifetime income solutions due to concerns over fiduciary liability and plan flexibility.
It’s been a tough year for high-quality stocks in Europe. Yet despite vexing market conditions, the underlying business features that define quality stocks often remain intact. For investors, there are compelling reasons to maintain conviction in companies with robust profitability and resilient business models—even when short-term returns disappoint.
While passive portfolios have excelled recently due to mega-cap dominance, the article warns that market disruption and concentration make them vulnerable to a sudden reversal in sentiment. It asserts that skilled active management is essential now to identify future winners and benefit from a potential broadening of the equity market.
In today’s equity markets, investors face a paradox: share price swings are more dramatic than ever yet often have little to do with a company’s underlying health or earnings. So how can investors achieve true diversification and risk reduction in a world driven by fickle market forces?
Taiwan-based insurers are gearing up for a big overhaul in their regulatory framework. The transition to the Taiwan Insurance Capital Standard (TW-ICS) is slated for January 2026, though some provisions will have a lengthy phase-in period.
Even amid rising markets, US investors should be aware of the hazards of a fast-changing environment.
Credit cycles happen. Defaults happen. But negotiated loan structures, lender protections and long-term capital make private credit uniquely resilient
High concentration makes it hard for diversified active portfolios to outperform. While the mega-caps include great businesses, active strategies may avoid or underweight popular stocks over concerns about valuations, business models and interrelated risks, or because of regulations on weighting individual holdings.
China’s “anti-involution” policy to tackle deflation, announced in 2024, is still in its early stages. Some effects are already visible, but compared with China’s last deflation fight in 2014–2015, the policy may take longer to work, in our view.
As policy priorities evolve, Japan’s focus on “responsible fiscal expansion” could reshape bond dynamics.
The consumer sector was in sharpest focus during the conference. That wasn’t surprising, given the negative headlines surrounding fraud allegations at subprime auto financer Tricolor Auto Acceptance and its subsequent bankruptcy filing.
Register now and join AllianceBernstein’s fixed-income experts as they discuss how to navigate today’s shifting market landscape.
Stocks have surged since their April lows, with demand especially high for higher-risk equities and technology stocks—including those issued by firms with unproven profitability. But economic growth is slowing, and trade-related uncertainty has yet to be resolved.
Technology stocks have continued to benefit from enthusiasm over the transformative potential of artificial intelligence (AI). Yet many investors are concerned that share prices and valuations may reflect overly exuberant earnings expectations.
By contrast with traditional discretionary approaches, systematic fixed-income models are exclusively data-driven and operate autonomously—ranking securities, constructing optimized portfolios and managing risk without traditional inputs or discretionary overlays.
Over the last few years, the US housing market has defied expectations as prices, helped by constrained supply, have remained resilient—despite high mortgage rates and affordability challenges for homebuyers. But the outlook appears to be darkening, with recent headlines seizing on potentially adverse trends.
Bond issuance linked to environmental, social and governance (ESG) purposes dipped in the first half of 2025 following a strong second half in 2024. But we expect issuance of ESG-labeled bonds will pick up for several reasons.
AI is a potential boon to healthcare companies, but business fundamentals—not the latest science—are the true test of staying power.
How can investors navigate the diverse, dynamic field of corporate and asset-backed opportunities?
Water scarcity, supply-chain risk and board-level decisions underscore the importance of a stewardship lens.
Blended finance has the potential to transform overlooked markets into investable opportunities.
Companies with dependable growth profiles might be just what equity portfolios need in turbulent times.
Earnings expectations for the Magnificent Seven (or Mag Seven) mega-caps remain optimistic, but profits may face pressure as spending rises. Equity investors should carefully evaluate each of the mega-caps while searching across other sectors for solid sources of profitable growth.
How should investors think about integrating private credit into their portfolios?
When equity markets rise to record highs, it’s natural for investors to feel a twinge of anxiety about putting more money into stocks. The fear of an impending correction often looms large.
It’s a deeply ingrained investing maxim that risk and return go hand in hand: to get more return, you must accept more risk.
The adage “don’t borrow trouble” advises us against distressing over problems yet to occur. But we don’t think it should apply to retirement planning. In fact, digging into what concerns DC plan participants now may help them avoid retirement pitfalls down the road.
Director elections can be a powerful tool for investors to weigh in on ineffective boards.
Finding attractively valued stocks that can overcome evolving conditions requires a new mindset.
As their share price patterns diverge, selectivity among the US mega-caps is paramount.
Revamped insurance regulations could bring securitized investments back into play.
Elevated yields and conservative balance sheets are helping high yield stay resilient amid trade uncertainty.
As investors re-evaluate their allocations to US assets, we think they should consider euro-denominated bonds.
The first step toward offering participants lifetime income is to address misperceptions.
Trend-following may struggle in range-bound markets, but it’s not the only macro approach.
Efforts to reduce the central bank’s autonomy would likely disrupt markets.
Our research suggests that firms with sound executive pay practices yield healthier returns.
Policy shifts may create an incentive to diversify.
Technology offers plan sponsors powerful retirement planning and engagement tools.
