2026 was unlikely to be a year for broad market beta. The Middle East conflict and the AI-driven sell-off have now made that case impossible to ignore.
The rise of AI has sown doubt within public equity markets about the software industry’s long-term viability. What might that mean for software equity investors and credit investors and lenders?
(20:53) Credit spreads may look calm on the surface, but underneath, dispersion is rising fast. In this episode, we break down the growing pressure on BDCs and private credit, how AI disruption is forcing a repricing of software company capital structures, and what the Middle East military conflict means for oil, inflation, and the Fed. We also explore where selective opportunities are emerging — and the crisis that shaped our Fixed Income CIO's approach to risk more than any other.