Invesco Research Hub

Invesco’s current research underscores a strategic focus on navigating structural inflationary pressures and identifying yield opportunities across both public and private credit markets. Amidst a macro outlook that suggests persistent inflation and a delayed Fed easing cycle, the firm emphasizes total return metrics for senior loans and identifies AAA-rated CLOs as a source of compelling income, particularly through European diversification. While energy supply disruptions from regional conflicts pose ongoing inflationary risks, the firm maintains a constructive outlook on North Asian equities, driven by the AI-led semiconductor cycle. Furthermore, Invesco clarifies the nuances of the $3.3 trillion private credit sector, noting that concerns over liquidity are largely confined to a small segment of the market and that listed BDCs currently present value at a 17% discount to NAV. Across both equity and credit mandates, the research advocates for a rigorous, data-driven approach—prioritizing first-lien senior secured debt and high-quality municipal bonds—to manage volatility and capture reliable yield in an evolving global economy.