New York Life Investment Management (NYLIM), a global asset management firm with approximately $838 billion in assets under management, today announced the release of the 2026 edition of its annual Megatrends research report. This year’s report, The Next Era in Global Liquidity: An Architecture, finds that major developed economies are moving toward a more market-led liquidity regime, as non-bank financial institutions (NBFIs) and other market participants take on a greater role in providing and intermediating capital.

The shift is broadening the sources of liquidity across the financial system while making traditional market backstops less uniform. Unlike banks, NBFIs generally operate outside the formal, repeatable central-bank liquidity infrastructure available to the banking system. This raises new questions about where liquidity may come from during periods of market stress. In the U.S. Treasury market alone, private, non-official investors now hold roughly 60% of outstanding debt, up from 37% in 2014.

“Investors have traditionally thought about liquidity as a characteristic of an asset or investment vehicle. We believe it increasingly needs to be understood at the portfolio and financial-system level,” said Julia Hermann, Global Market Strategist at NYLIM. “A broader range of market participants are taking on functions once concentrated in banks and central banks. That creates new sources of flexibility, but also new questions about where liquidity comes from during periods of stress. Understanding that changing architecture can help investors think more holistically about portfolio construction, risk and the role liquidity may play in the next market cycle.”

Implications for investors

The report identifies several developments that illustrate how investors and markets are adapting to the evolving liquidity environment:

  • Private markets are developing new liquidity tools, without changing the liquidity of the underlying assets. Secondaries, continuation vehicles and semi-liquid structures can provide additional ways to transfer exposures or access capital, but do not fundamentally change the liquidity characteristics of the underlying investments.

  • Digital infrastructure may improve asset mobility—but mobility is not liquidity. Tokenization and stablecoin-based settlement can make ownership and collateral easier to transfer, but true market liquidity still depends on willing buyers and sellers, effective price discovery and the ability to transact without materially moving prices.

  • Portfolio construction is increasingly incorporating liquidity across the total portfolio. The growing adoption of the Total Portfolio Approach reflects greater focus on managing risk and liquidity across investments rather than solely within traditional asset-class allocations.

“In today’s fragmented financial architecture, liquidity in fixed income markets is not merely a risk constraint—it is a strategic asset,” said Michael DePalma, Co-Head of Global Fixed Income at MacKay Shields. “Because daily pricing does not guarantee market-clearing liquidity, we structure our multi-sector portfolios with explicit liquidity tiers that act as operational pressure valves. When market leverage unwinds and dealer balance sheets tighten, immediate collateral availability can provide greater flexibility to navigate periods of market stress and evaluate potential opportunities arising from forced selling across global rates, credit and securitized markets.”

Ultimately, NYLIM’s research finds that a more fragmented liquidity architecture is not necessarily a less resilient one. A wider range of capital providers can diversify the financial system’s capacity to absorb shocks, but that capacity is less uniform and increasingly sits outside traditional central-bank backstops. For investors, that raises the importance of understanding where liquidity is coming from and how reliably it may be available when markets come under pressure.

Read the full 2026 Megatrends report, The Next Era in Global Liquidity: An Architecture, and explore additional insights from NYLIM Global Market Strategy here.

About New York Life Investment Management

With approximately $837.6 billion* in assets under management as of June 30, 2026, New York Life Investment Management is a Pensions & Investments’ Top 30 Largest Money Manager** and one of the largest active asset managers globally, with leading positions across both public and private markets. Comprised of the affiliated global asset management businesses of New York Life Insurance Company, New York Life Investment Management is committed to achieving enduring financial outcomes and building long-term partnerships across market cycles and generations. Our specialized, independent investment teams bring disciplined active management and deep expertise to help clients navigate the next era of investing.

“New York Life Investment Management” is the brand name and service mark used to represent a group of affiliated investment advisers of New York Life Insurance Company: Andera Partners, Apogem Capital LLC, Ausbil Investment Management Limited, Bow River Asset Management, LLC, Candriam S.C.A., Kartesia Management S.à r.l., MacKay Shields LLC, New York Life Investment Management LLC, NYL Investors LLC, and Tristan Capital Partners LLP.

*Assets under management (AUM) includes assets of the investment advisers that make up “New York Life Investment Management” as of 6/30/2026. AUM includes certain assets, such as nondiscretionary AUM, external fund selection, and overlay services, including ESG screening services, advisory consulting services, white labeling services, and model portfolio delivery services, that are not necessarily considered Regulatory Assets Under Management according to the SEC’s Form ADV. AUM is reported in USD. AUM not denominated in USD is converted at the spot rate as of 6/30/2026.

The total AUM figure for “New York Life Investment Management,” as a brand, is less than the sum of the AUM of each affiliated investment adviser in the group because it does not count AUM where the same assets can be counted by more than one affiliated investment adviser. In addition, AUM includes assets of certain, but not all, investment advisers affiliated with New York Life Insurance Company and excludes assets managed by Andera Partners and Bow River Asset Management, LLC. AUM is based on estimates and is subject to change.

**New York Life Investment Management ranked 26th largest institutional investment manager in Pensions & Investments’ Largest Money Managers 2026 published June 2026, based on worldwide institutional AUM as of Dec. 31, 2025. No direct or indirect compensation was paid for the creation and distribution of this ranking.

Important Disclosures:

The information presented herein represents the views and opinions of New York Life Investment Management and its affiliated investment advisers as of the date of this release and is subject to change. This material is provided for informational purposes only and should not be construed as investment advice or a recommendation to purchase or sell any security or pursue any investment strategy. There is no assurance that any views, forecasts or expectations discussed will be realized. Investing involves risk, including possible loss of principal. Liquidity can vary significantly across investments and market conditions and may decline during periods of market stress. “New York Life Investment Management” is the brand name and service mark used to represent the affiliated investment advisers of New York Life Insurance Company identified above.

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