In a market shaped by tariff-induced volatility, tight credit spreads, and shifting policy signals, PGIM’s Michael Collins offers a timely perspective on what lies ahead for bond investors. Despite persistent uncertainty, economic fundamentals remain resilient, and fixed income continues to present compelling opportunities—especially for those focused on carry, credit quality, and tactical positioning.
The backdrop remains defined by broad market resilience and tight credit spreads amid persistent policy uncertainty. While headlines have focused on risk—especially around central bank decisions and tariff negotiations—actual economic activity has held up remarkably well. Institutional investors have been rebalancing into fixed income, drawn by attractive valuations and defensive characteristics. Fixed income remains cheap relative to equities and cash.
Read on to explore key bond market themes, market outlook, and portfolio strategies from PGIM’s fixed income expert.
Related Insights
-
The Bull Market Climbs a Wall of Worrying HeadlinesIn its 3Q 2025 outlook, PGIM Fixed Income shares their views on the current economic environment and outlook for fixed income markets.
Read More
-
Gatekeeper Pulse® - Risk Readiness at the ForeUncertainty fosters demand for risk-minded managers and volatility-dampening strategies.
Read More
-
The Case for High Yield vs. EquitiesThis post assesses the relative value of global high yield bonds vs. global equities.
Read More
%20(1):560by316?wid=360&hei=200&qlt=90&bfc=on&ts=1753720344605)
References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. The securities referenced may or may not be held in the portfolio at the time of publication and, if such securities are held, no representation is being made that such securities will continue to be held.
The views expressed herein are those of PGIM investment professionals at the time the comments were made, may not be reflective of their current opinions, and are subject to change without notice. Neither the information contained herein nor any opinion expressed shall be construed to constitute investment advice or an offer to sell or a solicitation to buy any securities mentioned herein. Neither PFI, its affiliates, nor their licensed sales professionals render tax or legal advice. Clients should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation. Certain information in this commentary has been obtained from sources believed to be reliable as of the date presented; however, we cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance (or such earlier date as referenced herein) and is subject to change without notice. The manager has no obligation to update any or all such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy.
Any projections or forecasts presented herein are subject to change without notice. Actual data will vary and may not be reflected here. Projections and forecasts are subject to high levels of uncertainty. Accordingly, any projections or forecasts should be viewed as merely representative of a broad range of possible outcomes. Projections or forecasts are estimated based on assumptions, subject to significant revision, and may change materially as economic and market conditions change.
4702842
