As we navigate the third quarter of 2025, investors are faced with a number of challenges: tariff policies reshaping global markets, central bank divergence, and a shift in stock-bond correlation regimes. Against this backdrop, recession probability remains elevated at more than 60%, US fiscal debt is on the rise approaching 130%, and geopolitical tensions continue to fuel market volatility. Despite these challenges, there are potential opportunities that investors may be able to capture. Our Third Quarter 2025 outlook explores five key themes impacting markets and seeks to identify these compelling, actionable opportunities through our assessment of major asset classes.

Institutional investors face new challenges and opportunities as they seek the optimal mix of public and private credit in multi-asset portfolios.

With the economic and investment landscape evolving rapidly, some institutional asset owners are championing a new model for ensuring that asset allocations continue to remain aligned with their investment objectives.