Investment Outlook | Q4 2026
AI enters its political phase
The November US midterms may matter less for the precise composition of Congress than for what they reveal about the AI concerns resonating with voters. Although AI still trails the economy, immigration and foreign affairs as a priority, public anxiety about its consequences is rising. For US credit investors, the key question is where that anxiety begins to constrain the investment cycle, alter the supply outlook and change the compensation required for AI-linked risk.
Additional highlights
- As the AI buildout collides with US politics, US credit investors will need to weigh supply pressure, infrastructure constraints and issuer dispersion against the long-term growth potential of the asset class.
- We see attractive opportunities across securitized credit, particularly in esoteric ABS tied to digital infrastructure, where complexity and differentiated collateral can offer compelling relative value.
- Investment grade (IG) infrastructure credit remains a high-conviction area, supported by financing needs across digital infrastructure, power generation, transportation and energy-security projects.
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