BIZ BUZZ: Strong 2026 outlook for equities, fixed income assets
2025 has been more than kind to the trust banking group of Ty-led Metropolitan Bank and Trust Co.
For Ma. Cristina Gabaldon, head of the investment management division, 2025 has been “pivotal” and “marked by notable milestones in investment management that have further reinforced our leadership in the industry.”
In a letter to clients, Gabaldon said the trust banking group was able to deliver above-average returns across local equities, global fixed income and multi-asset portfolios.
Its local equity outperformance, she said, was primarily driven by strategic preference for high-yielding, defensive names, while global fixed income performance was supported by “opportunistic” purchases of select sovereign and corporate bonds.
“Our proactive asset allocation decisions significantly enhanced multi-asset portfolio performance,” she added.
Gabaldon expects the strong performance to carry over into 2026, helped along by expectations that the next leader of the US Federal Reserve will be more supportive of further rate cuts.
“Trump is expected to announce his choice for the next Federal Reserve Chair soon, increasing his influence over Fed policy,” she said, “A more dovish successor to [current US Fed chair] Jerome Powell is anticipated, which should support continued rate cuts throughout 2026.”
“In this environment, we expect fixed income, equities and other risk assets to maintain strong performance into next year,” Gabaldon added.
