Aviva Investors Compass Q2 2026 says carry remains core but needs selection

Carry remains the core of the fixed income case but now requires careful selection, Aviva Investors said in its Q2 2026 Compass, published on 27 April.

The quarterly outlook describes the market as moving from acute, indiscriminate disruption into a prolonged phase of re-adjustment. Inflation and central bank tightening are the immediate risk, with risks to economic growth the longer-term challenge. Investors should focus selection on credit quality and resilience rather than on broader market beta, Aviva Investors said.

Emerging market local currency debt continues to look compelling, it added, after large price adjustments and widespread position reductions reset valuations.