Financial market valuations, particularly in the US, continued to richen in 2025 despite a deck full of wildcards. As head of Global Value, Matt McLennan—together with Deputy Heads Julien Albertini and Christian Heck and Senior Research Advisor Kimball Brooker—discuss, however, there’s a fine line between confidence and hubris, and they believe the low risk perception evident in certain markets leaves them particularly vulnerable to the latter.

Observing the current mania for private assets, Bill Hench, head of the Small Cap team, reflects on why he believes investment fundamentals ultimately trump vehicle structure.

Base rates remain compelling, but tight spreads and rising idiosyncratic risk demand discipline. In such an environment, Jon Dorfman, chief investment officer of Napier Park Global Capital, believes caution is warranted across credit markets.

Though 2025 was not without its ups and downs, the municipal bond market was able to absorb another period of very heavy new supply with relative aplomb. The technical headwinds seen earlier in the year began to dissipate in the second half to reveal what remains a fundamentally solid issuer base, according to John Miller, head and chief investment officer of the Municipal Credit team.