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Monthly View - April 2026

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Infrastructure
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AI

Balancing short-term risks & longer-term opportunity - Monthly View - April 2026

by Willem Sels, Global Chief Investment Officer, HSBC Private Bank and Premier Wealth
Mar 27, 2026

  • In recent weeks, we have made tweaks to our strategy to make it less vulnerable to the risk of high-for-longer energy prices. But we have not moved to a risk-off stance as we continue to see attractive medium-term opportunities, anchored by the resilient US economy, AI and investment
  • We continue to see well-diversified portfolios as the best way to navigate the quite unpredictable short-term news flow with the longer-term opportunities
  • As private credit creates many headlines, we discuss the context and our take on how to approach the asset class. A stagflation scenario would be a clear negative, but it remains a small tail risk in our view. The more specific concerns in software sector can be handled through disciplined underwriting and selecting borrower companies with strong revenue generation
  • Looking ahead, we notice a big pickup in differentiation between borrowers, and a more balanced supply/demand situation for lenders, which is healthy and improves conditions on new loans. A pickup in M&A activity and the huge need for capital for the worldwide infrastructure build-out, which should create many opportunities for lenders
  • While near-term volatility may persist, private credit continues to offer diversification and income, but disciplined underwriting, selective deployment, and a focus on resilient borrowers are key

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