Information Technology sits 57.14% overweight in TAA (Tactical Asset Allocation, short-term positioning across asset classes), while High Yield is effectively split at 26.32% overweight versus 28.07% underweight, a near-balanced distribution that signals limited cyclical conviction.

Federated Hermes, Asset Allocation Award winner 2026, confirms the caution: spreads are tighter than pre-war levels, but AI-related disruption and elevated M&A activity limit the case for adding risk.

In SAA (Strategic Asset Allocation, long-term 10-year return assumptions), Global High Yield returns a consensus 5.78%, but with a dispersion of 0.8, conviction is medium at best.

If semis have to be their own credit, who is taking the other side of that trade?