Leveraged Finance

Global High Yield

Fact Sheet
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Investment Objective

The Global High Yield strategy seeks to maximize excess returns versus the ICE BofA Developed Markets High Yield Constrained Index (Euro Hedged) over the long term.1

Investment Philosophy

The Global High Yield Broad Strategy, which seeks to identify attractive high yield credits in multiple countries and currencies around the world, is designed to benefit from enhanced diversification and alpha through active regional and currency allocations absent from just US or European high yield.

PGIM attempts to achieve this through well-diversified portfolios of performing credits that are carefully researched. Intensive fundamental research is conducted by a large and experienced internal credit research staff to identify strong and improving credits.

The size and experience of the research organization permit us to apply intense focus on individual securities identified from a broad pool of investment opportunities.

Portfolios are then actively managed to capture the best opportunities and minimize credit losses, within an environment of disciplined risk management oversight.

PGIM does not take extremely large positions, either on an absolute basis or relative to benchmarks, in any single issuer or industry as a primary means to achieve outperformance.

We do not hold a significant portion of the portfolio in an asset class other than US and European high yield bonds, such as common stocks or emerging markets.

Investment Process

1. Senior portfolio manager develops top down themes and regional views by leveraging firms resources

2. Investment Team selects securities and constructs portfolio

Fundamental Value Assessment

Credit analysts evaluate all industries and issuers in the universe. Focus on downside protection:

  • Asset quality
  • Capital structure
  • Covenants

Relative Value Security Selection

Sector portfolio managers evaluate and maximize relative value among approved universe:

  • Choose credits with strong fundamentals and best relative value

Position Sizing

Sector portfolio managers size positions:

  • Evaluate industry, issuer and market fundamentals
  • Achieve top-down beta and curve positioning objectives
  • Refine position sizes as risk profiles and thresholds change

3. Portfolio Managers and Risk Managers monitor portfolio risk at all levels—interest rate, beta, industry, region, issuer, and quality

Past performance is not a guarantee or a reliable indicator of future results. Your capital is at risk and the value of investments can go down as well as up. No investment strategy or management technique can guarantee returns or eliminate risk in any market environment. Where overseas investments are held the rate of currency may cause the value of investments to fluctuate. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in some established markets. Non-USD securities are converted to USD using a spot rate conversion.

1 Gross target excess returns do not reflect the deduction of investment advisory fees and other expenses, which will reduce returns and may be substantial. Net target excess returns reflect the deduction of a model fee equal to the highest fee borne by a portfolio utilizing the strategy. Targets are shown for illustrative purposes only, are subject to change and are current as of the date of this presentation only. Targets are objectives and should not be construed as providing any assurance or guarantee as to the results that may be realized in the future from investments in any asset or asset class described herein. If any of the assumptions used do not prove to be true, results may vary substantially. Available for professional and institutional investors only. Please see the Notice for additional important disclosures regarding the information contained herein.

Source: PGIM Credit as of June 30, 2026.

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