2Q26 Preview: Big beats across Trads; IPO rebound a tailwind for Exchanges & Alts

Research evidence excerpt

2Q26 Preview: Big beats across Trads; IPO rebound a tailwind for Exchanges & Alts

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Brokers, Asset Managers & Exchanges

2Q26 Preview: Big beats across Trads; IPO

rebound a tailwind for Exchanges & Alts

Price Objective Change

Bifurcation between economic resilience & late cycle risks 09 July 2026

The global backdrop remains anchored in a higher-for-longer regime while US economic Equity

activity continues to outperform led by the consumer, AI capex and easing energy United States

pressures while sticky inflation in services keeps a 75bps Fed hike forecast from the Brokers, Asset Managers and

ExchangesBofA econ team. Flow trends show signs of late cycle behavior: strong inflows into high

quality sectors in fixed income (vs. weaker in credit and loans) and moderating equity Craig Siegenthaler, CFA

flows. Republicans have a difficult setup into the mid-terms with Trump’s 39% approval, Research Analyst

BofAS

but Democrats need to flip 3 House/4 Senate seats to gain control. We view the window +1 646 855 5004

closing for the CLARITY Act which could be a major catalyst for crypto and tokenization. craig.siegenthaler@bofa.com

Eli Abboud

Research AnalystEmerging themes with significant buyside inbound BofAS

Private credit inbound did slow, but with the bad news (redemption limits) now behind +1 646 855 5791

us, the narrative could flip favorably with three catalysts: (1) lower redemption requests eli.abboud@bofa.com

in 3Q26, (2) plateau in credit quality in 2H26, (3) end of limits in 1H27. The Alt short KareemResearch SeifAnalyst

thesis shifted into private equity secondaries with day-1 mark-ups. However, this issue BofAS

+1 646 855 5759

is isolated to the evergreen vehicle which implies risks are small across our coverage. In kareem.seif@bofa.com