BNY has been at the center of global finance for more than 240 years. Since our founding, we’ve put our expertise and breadth to work in helping clients succeed. Today, as markets evolve amid shifting policy, technological transformation and structural realignment, our mission remains the same: deliver actionable insights and lasting outcomes.
Our commitment to insight and perspectives comes to life through our investment and markets leaders who gather quarterly to debate the key issues shaping markets today. We draw on the firm’s global reach and intellectual depth to produce forward-looking perspectives that help investors navigate complexity with confidence.
This quarter, conversations centered on fixed income. We dissected how resilient growth, shifting rate expectations, and diverging global monetary policies are reshaping opportunities across credit and sovereign markets. In particular, the Federal Reserve’s (Fed’s) recent rate cuts – seen more as insurance than stimulus – fueled debate on whether easing can extend the cycle without reigniting inflation.
We also looked at the global economy and how it continues to balance growth with policy recalibration. In the U.S., most of the uncertainty from tariffs has likely passed, but residual effects remain, partly offset by lower corporate tax rates. The Fed will follow the direction of travel signaled at its October meeting by easing policy further. Globally, policy easing is expected to support a reacceleration into 2026.
In markets, we expect corporate profitability to remain strong as companies continue to find success managing margins. The sustainability of the growth in artificial intelligence (AI) continues to be a central topic of discussion. We think cash flow strength in the tech sector sets this cycle apart from the dot-com era. Earnings growth is also broadening beyond big tech and rate relief should aid smaller, more levered companies.
Meanwhile, the housing market remains constrained, but lower rates should ease the imbalance and early signs of a rebound are becoming more visible. Still, with fiscal dynamics taking greater precedence and inflation likely to remain above target, return of capital – not just a return on capital – remains a central theme.
Through this report, we offer you a seat at our table where clarity comes from disciplined analysis and diverse perspectives. We offer insights across asset classes, regions and policy regimes, turning global complexity into actionable opportunity.
Eric Hundahl
Head of BNY Investment Institute1
BNY Advisors
Important Information
For sole and exclusive use by Institutional Investors, Accredited Investors and Professional Investors only. Not for further distribution. This is a financial promotion and is not investment advice. Any views and opinions are those of the investment manager, unless otherwise noted. The value of investment can fall. Investors may not get back the amount invested. BNY, BNY Mellon and Bank of New York Mellon are the corporate brands of The Bank of New York Mellon Corporation and may also be used to reference the corporation as a whole and/or its various subsidiaries generally. BNY Investments encompass BNY Mellon’s affiliated investment management firms and global distribution companies. Any BNY entities mentioned are ultimately owned by The Bank of New York Mellon Corporation. In Hong Kong, the issuer of this document is BNY Mellon Investment Management Hong Kong Limited, which is registered with the Securities and Futures Commission (Central Entity Number: AQI762). In Singapore, this document is issued by BNY Mellon Investment Management Singapore Pte. Limited, Co. Reg. 201230427E. Regulated by the Monetary Authority of Singapore (MAS). This advertisement has not been reviewed by the Monetary Authority of Singapore.
1 BNY Investment Institute consists of BNY Advisors’ macroeconomic research, asset allocation, manager research and operational due diligence teams.
GU-691 Exp: 30 June 2026
