Bring Out the Best in Corporate Bonds

Investment grade corporate debt can upgrade a portfolio’s potential.

MARKET POTENTIAL EXPERTISE IN ACTION ADDED INSIGHTS
MARKET POTENTIAL EXPERTISE IN ACTION ADDED INSIGHTS

CONDITIONS CALL FOR QUALITY

Against a bond market backdrop marked by attractive yields, tight spreads among investment grade corporate credit securities promote a bias toward quality in a sector already characterised by sound fundamentals among issuers. Spreads appear likely to widen as evolving conditions introduce added risk, prolonging the allure of current yield levels and boosting the sector’s risk-adjusted return potential.

Equipped For Outperformance

EXPERIENCE AND STABILITY

 

The PGIM Fixed Income investment grade team consists of 22 portfolio managers with 18 years of experience on average, including 18 years with the firm, supported by more than three dozen analysts.

SCALE AND RESOURCES

 

Backed by its Fortune-100 parent company, the team leverages global perspective and local-market insights to identify the most compelling investment grade opportunities among developed markets.

SPECIALISED EXPERTISE

 

Portfolio managers with defined areas of expertise partner with sector analysts to develop in-depth subsector insights to inform their relative-value assessments of each issuer in the sector.

Sources of data (unless otherwise noted) are as of 31 December 2024.
 

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.

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