Fault Lines And Flashpoints: Navigating Credit Markets Through A Geopolitical Shock

Calamos Investments568 FollowersFollow5ShareSavePlay(7min)CommentsSummaryOur base case is that turmoil in the Middle East resolves or stabilizes within a couple of months, energy prices retreat by mid-year, and the Fed resumes easing in the back half of 2026.The defensive credit positioning we established over prior quarters proved advantageous, helping to insulate the Calamos Fixed Income funds from the widening at the lower end of the ratings spectrum.Fund positioning reflects our view that the yield curve will continue to steepen, and we remain highly selective in an environment of elevated near-term risks. primeimages/E+ via Getty Images By Matt Freund, CFA, Christian Brobst, and Chuck Carmody, CFA So much has happened in the past month that investors may have forgotten how constructive the markets were at the beginning of the year. 2026 beganThis article was written byCalamos Investments568 FollowersFollowCalamos Investments is a diversified global investment firm offering innovative investment strategies including U.S. growth equity, global equity, convertible, multi-asset and alternatives. The firm offers strategies through separately managed portfolios, mutual funds, closed-end funds, private funds, an exchange traded fund and UCITS funds. Clients include major corporations, pension funds, endowments, foundations and individuals, as well as the financial advisors and consultants who serve them. Headquartered in the Chicago metropolitan area, the firm also has offices in London, New York and San Francisco. For more information, please visit www.calamos.com.