As 2o26 begins, global markets exhibited a blend of equity gains, stabilizing debt conditions, as well as uneven real estate performance, according to PitchBook‘s December 2025 Global Markets Snapshot report. Released on January 5, 2026, with data through December 31, 2025, the report underscores a year marked by significant capital inflows, particularly in private equity (PE) and venture capital, amid fluctuating commodity prices and a flattening US Treasury yield curve.
In the equity markets, performance was reportedly solid across major indices.
The Morningstar Global index surged 22.6% year-to-date (YTD), while the S&P 500 rose 17.9% and the Nasdaq Composite climbed 21.1%.
Internationally, the Nikkei 225 led with a 25.8% YTD gain, and the FTSE 100 advanced 21.1%.
Over three years, annualized returns for the Morningstar Global and S&P 500 both stood at 20.5%, highlighting sustained momentum.
VC-backed initial public offerings (IPOs) outperformed dramatically, with the VC-Backed IPO Index up 220.7% YTD compared to the Nasdaq’s 129.0%.
Notable December listings included Medline (PE-backed, $38.1 billion valuation, US) and MetaX Tech (VC-backed, $5.9 billion, China).
Deal activity remained hot, featuring Databricks’ $4.1 billion VC growth round at a $134 billion valuation and BP Castrol’s $6 billion buyout.
Sector-wise, communication services and technology dominated US three-year returns at 189.1% and 167.8%, respectively, with growth stocks outpacing value by 33.9% YTD. Regionally, Asia emerged as a unicorn hotspot, leading monthly creations in recent periods.
Debt markets showed resilience amid higher interest rates. US leveraged loan volumes hit $120 billion, with institutional yields at 6.1% and BB-rated at 6.0%.
In Europe, leveraged loans totaled €18 billion, yielding 7.7% for term loan B (TLB). Middle-market loans in the US reached $70 billion, with secured yields at 6.0%.
High-yield bond distressed ratios eased to 4.3% by par amount. Bond index returns were modest: US high-yield at 1.40% YTD and global high-yield at 1.24%.
Central bank rates held steady, with the US at 4.2%, Euro area at 3.6%, and UK at 4.5%.
The US 10-year Treasury yield closed at 4.18%, implying 2.3% inflation via TIPS. Spreads narrowed, with US high-yield at 3.8% and Europe at 2.0%.
Real estate presented a mixed picture.
Global REITs returned 5.5% over three years, but residential soared 74.5% while office lagged at -14.1%.
US housing permits hovered between 1,000-1,200 thousand units, with single-family sales at 400-900 thousand amid mortgage rates of 6.6-7.8%.
Commercial mortgage-backed securities (CMBS) delinquency rates stood at 3.0% overall, with industrial at 4.5%. Housing inflation accelerated, with US CPI shelter up 6.6% year-over-year (YoY) and UK owner-occupied housing at 11.3%.
Fundraising hit new heights, with global megafunds raising $140 billion in 2025, split evenly between PE and VC at around $60 billion each. Commodities varied: gold jumped 64.5% YTD, but Brent oil fell 17.6% and agriculture declined 8.0%.
Exits via IPOs and de-SPACs were fairly strong, especially in Asia and the US, signaling liquidity improvements.
Overall, the report paints a picture of relative optimism in equities and private markets, tempered by debt caution and real estate disparities.
While no explicit forecasts are provided, trends suggest continued Asia-led innovation and tech dominance, potentially buoyed by stabilizing rates.
The PitchBook report concluded that investors should now closely monitor inflation and yields for 2026 shifts.