BDCs and private credit funds finance middle-market firms but differ in access. BDCs offer liquidity and transparency; private credit funds are less liquid with limited access and longer lock-ups.

Investor sentiment turned more selective as markets rewarded tangible fundamentals and execution over elevated expectations entering 2026.

Fallen angels outperformed broad high yield in 2025, driven by security selection, longer duration, and resilient credit quality. Attractive yields and selective downgrades support 2026.

AI-driven power demand and electrification are reshaping resource markets as commodities diverge, metals outperform, energy lags and supply constraints return to focus.