Executive Summary
Morgan Stanley's global head of corporate credit research identifies a structural divergence emerging in 2026: animal spirits will drive equity outperformance while simultaneously punishing credit markets through aggressive corporate issuance. Andrew Sheetz expects roughly $1 trillion in net US investment grade supply—a massive uptick from 2025—as corporates abandon years of restraint to fund AI capital expenditure, M&A, and expansion. This creates an unusual but historically precedented scenari...
Key Investment Opportunity
Equity-Credit Divergence Trade
Position for historical pattern where corporate aggression drives equity outperformance while credit spreads widen due to increased issuance
...and 2 more investment opportunities
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