Credit markets have held up through a genuinely difficult period. Corporate earnings remain broadly supportive, demand for yield is healthy, and spreads — though tight by historical standards — have not blown out despite geopolitical shocks, renewed inflation concerns, and pockets of stress in private credit. But tight spreads in a volatile environment do not mean risk has diminished. They often mean risk has become harder to see. “The headline picture is one of resilience,” says the Robeco Credit Income team. “But that surface-level stability can obscure what is happening in the underlying structure of the market.” Endowus spoke with Robeco’s credit team about what they are observing, how artificial intelligence (AI) is reshaping bond fundamentals, and why avoiding the wrong bonds may matter as much as finding the right ones. This article was authored by Endowus in collaboration with Robeco.
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