Capital Group detects a shift of investors towards global fixed income to gain diversification and liquidity
18 MAY, 2026
By Joanna Piwko from RankiaPro Europe
The fixed income is gaining prominence again in institutional portfolios. The increase in market volatility and the persistence of macroeconomic uncertainty are leading large asset owners to strengthen their positions in defensive assets, prioritizing geographical diversification, liquidity, and greater flexibility in managing their investments.
This is reflected in the study "Fixed Income Horizons Survey 2026", prepared by Capital Group among 300 senior institutional investment professionals from Asia-Pacific, Europe, Middle East, and North America. The survey shows a progressive change in portfolio construction, with a greater preference for active strategies and a renewed interest in segments such as investment-grade corporate credit and emerging market debt.
"Fixed income is increasingly used to stabilize portfolios in the face of persistent uncertainty," says Álvaro Peró, director of fixed income investments at Capital Group. According to the executive, investors are trying to reduce concentration risk through greater regional diversification and a more flexible approach to asset allocation.
Active management gains weight in institutional portfolios
One of the main changes detected by the study is the increase in demand for active management in fixed income. 46% of respondents say they will increase the use of active strategies in the next twelve months, compared to only 5% who plan to reduce them.
In addition, two-thirds of asset owners claim to be modifying their investment approach to gain agility, mainly by expanding the limits of tactical allocation. In parallel, 72% identify adjusting the composition of the credit portfolio as a strategic priority and 67% point to geographical diversification as one of their main objectives.
At Capital Group, they believe that this context favors global and flexible strategies. "Many investors turn to active management to adapt to changing correlations and discover sources of resilient income," highlight Mario González, head of Capital Group's business in Spain, US offshore and LATAM, and Álvaro Fernández, co-head of business in Spain and Portugal.
More interest in liquid fixed income and investment-grade credit
The survey also reflects an increase in appetite for liquid fixed income. 31% of institutional investors plan to increase their allocations to this type of assets over the next twelve months, compared to 25% recorded in the previous edition of the study. On the other hand, only 20% plan to reduce exposure.
The main reasons behind this trend are the need to diversify equity risk and the defensive positioning of portfolios. In fact, 61% of respondents cite diversification as the main motivation, while 59% point to the search for protection against the deterioration of the economic environment.
As for specific segments, investment grade corporate credit gains traction especially outside the United States. 36% of asset owners plan to increase exposure to Asia-Pacific investment grade credit and 32% to European, compared to 20% who bet on increasing positions in US credit.
The study also detects a growing interregional interest. EMEA investors increase their allocations towards Asia-Pacific, while Asian institutions increase their exposure to Europe. North American investors also show a greater predisposition towards European credit compared to last year.
Emerging debt and private credit maintain attractiveness
Another segment that arouses great interest among institutions is emerging market debt. The percentage of investors planning to increase exposure has almost doubled in a year, from 16% to 30%.
According to Capital Group, this movement responds both to the potential for diversification and to the higher yield premiums offered by this asset compared to developed debt segments. In addition, about three quarters of respondents believe that the real returns of emerging debt will remain stable or increase over the next twelve months.
Private credit, on the other hand, continues to consolidate as one of the favorite segments within fixed income. 34% of asset owners plan to increase their allocations to this market and 58% assure that it already represents more than 10% of their fixed income portfolios, compared to 39% recorded in 2025.
For Capital Group, the current scenario reinforces the importance of maintaining global, diversified, and actively managed portfolios. "A globally diversified and actively managed fixed income approach is a way to maintain flexibility in uncertain conditions," conclude the managers of the firm.
