Aegon Asset Management and Barclays Plc are preparing for a potential reversal in the credit market after a brief rally, as concerns about rising inflation and geopolitical tensions persist. Global investment-grade credit experienced its best month since August, returning 1.3%, while high-yield credit saw a 2.3% return. However, with crude oil prices hitting a four-year high and the Strait of Hormuz effectively shut due to geopolitical tensions, strategists are advising caution. Alex Pelteshki, a portfolio manager at Aegon, suggests that while spreads may sell off, the timing is uncertain. Investors are encouraged to consider hedging strategies, such as credit default swaps, to mitigate risks. Central banks, previously expected to cut interest rates, are now reassessing their positions in light of rising inflation. As the geopolitical landscape remains uncertain, the potential for continued supply chain disruptions could keep inflation elevated, prompting a more hawkish stance from central banks like the European Central Bank and the Bank of England.