Corporate Credit Snapshot - February 2026

February 9, 2026

Please click here to download the full report.

US

US corporate credit delivered positive returns in January. Despite continued volatility across markets, credit markets remained well-supported and were a source of relative stability. Macro-uncertainty was driven by various geopolitical dynamics and headlines including President Trump’s continued desire to acquire Greenland, the US’s capture of Venezuelan President Nicolas Maduro, and the build-up of US forces in the Middle East as President Trump focuses on Iran. An increased emphasis on US mid-term elections in November was also apparent, particularly in Trump’s Davos speech and several US policy announcements that appeared aimed at easing cost pressures on US consumers. Credit spreads were tighter, and rates were higher as economic data continued to suggest fewer rate cuts may be needed. This month US high yield outperformed investment grade.

EUROPE

European credit markets generated positive returns across the board in January. Despite continued volatility across markets, European credit markets remained well-supported and were a source of relative stability. Macro-uncertainty was driven by various geopolitical dynamics and headlines including President Trump’s continued desire to acquire Greenland, the US’s capture of Venezuelan President Nicolas Maduro, and the build-up of US forces in the Middle East as President Trump focuses on Iran. Credit spreads were tighter, while rates were slightly lower in Europe. This month investment grade outperformed in Europe on the back of a modest rates tailwind.

EM

Emerging markets (EM) debt delivered strong positive returns this month. Within EM, corporate credit outperformed sovereigns, led by the performance of Asian high yield. In terms of EM investment grade, Eastern Europe was the best performing region. Strong inflows into EM and other credit asset classes supported elevated supply, including robust January primary issuance for corporate credit. Sovereign issuance was also vigorous, driven by the Middle East & Africa region which issued more than twice the supply seen in 2025, with Saudi Arabia accounting for roughly half of the regional issuance. At the quasi-sovereign level, Saudi issuers are increasingly replacing energy dividends with bond funding. There were no defaults in January in EM, and we saw conditions improve across regions and sectors. In Latin America, the technology, media, and telecommunications (TMT) sector outperformed; in Eastern Europe, the utilities sector excelled; and in Asia, credit was broadly supported by bond tenders and exchanges.

OUTLOOK

As we enter February, we are watching geopolitical developments in the Middle East. On the macroeconomic front, one key indicator to watch may be the US dollar; a currency is often viewed as a barometer of both the economy’s health and confidence in the administration running it. Demand for US assets remains robust, but international investors seem to be showing interest in hedging against administration-related risks, contributing to US dollar depreciation. At the same time, we believe the global credit landscape remains fundamentally solid—corporate earnings continue to be mostly healthy, and supportive technicals are reinforcing historically tight spreads.

 

Past performance is not a reliable indicator of current or future performance. 

Muzinich views and opinions are for illustrative purposes only and not to be construed as investment advice.

This material is not intended to be relied upon as a forecast, research, or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed by Muzinich & Co. are as of February 2026 and may change without notice.

--------

Important Information

Muzinich and/or Muzinich & Co. referenced herein is defined as Muzinich & Co., Inc. and its affiliates. Muzinich views and opinions. This material has been produced for information purposes only and as such the views contained herein are not to be taken as investment advice. Opinions are as of date of publication and are subject to change without reference or notification to you. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. The value of investments and the income from them may fall as well as rise and is not guaranteed and investors may not get back the full amount invested. Rates of exchange may cause the value of investments to rise or fall. Emerging Markets may be more risky than more developed markets for a variety of reasons, including but not limited to, increased political, social and economic instability; heightened pricing volatility and reduced market liquidity.

Any research in this document has been obtained and may have been acted on by Muzinich for its own purpose. The results of such research are being made available for information purposes and no assurances are made as to their accuracy. Opinions and statements of financial market trends that are based on market conditions constitute our judgment and this judgment may prove to be wrong. The views and opinions expressed should not be construed as an offer to buy or sell or invitation to engage in any investment activity, they are for information purposes only.

This discussion material contains forward-looking statements, which give current expectations of a fund’s future activities and future performance. Any or all forward-looking statements in this material may turn out to be incorrect. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Although the assumptions underlying the forward-looking statements contained herein are believed to be reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurances that the forward-looking statements included in this discussion material will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation that the objectives and plans discussed herein will be achieved. Further, no person undertakes any obligation to revise such forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

United States: This material is for Institutional Investor use only – not for retail distribution. Muzinich & Co., Inc. is a registered investment adviser with the Securities and Exchange Commission (SEC). Muzinich & Co., Inc.’s being a Registered Investment Adviser with the SEC in no way shall imply a certain level of skill or training or any authorization or approval by the SEC.

Issued in the European Union by Muzinich & Co. (Ireland) Limited, which is authorized and regulated by the Central Bank of Ireland. Registered in Ireland, Company Registration No. 307511. Registered address: 32 Molesworth Street, Dublin 2, D02 Y512, Ireland. Issued in Switzerland by Muzinich & Co. (Switzerland) AG. Registered in Switzerland No. CHE-389.422.108. Registered address: Tödistrasse 5, 8002 Zurich, Switzerland. Issued in Singapore and Hong Kong by Muzinich & Co. (Singapore) Pte. Limited, which is licensed and regulated by the Monetary Authority of Singapore. Registered in Singapore No. 201624477K. Registered address: 6 Battery Road, #26-05, Singapore, 049909. Issued in all other jurisdictions (excluding the U.S.) by Muzinich & Co. Limited. which is authorized and regulated by the Financial Conduct Authority. Registered in England and Wales No. 3852444. Registered address: 8 Hanover Street, London W1S 1YQ, United Kingdom.