With tariff-driven volatility receding and markets on the rise, Andrzej Skiba, BlueBay Head of U.S. Fixed Income, outlines what’s next for U.S. credit markets heading into 2026, and why evolving market conditions still support solid returns across the asset class. Key points: Despite recent market volatility, we forecast high single-digit U.S. credit returns over the next year, driven by yields, spread tightening, and carry, amid continued Fed easing and a stabilizing U.S. economy. Improved economic conditions have revived U.S. credit M&A, increasing strategic deals and elevating credit-selection risks as leverage climbs. Recent high-profile bankruptcies are not seen as indicative of broader credit market weakness, while consumer credit remains broadly resilient despite challenges for lower-income households.