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PGIM Fixed Income's Global Senior Secured Loans Strategy seeks to provide +100 bps in excess return over a customized blend of the Credit Suisse Leveraged Loan Index and the Credit Suisse Western European Leveraged Loan: Euro Denominated (USD Hedged), or a similar market index over a full market cycle. 1,2
PGIM Fixed Income manages Global Senior Secured Loan portfolios with primarily a bottom-up investment approach. The most important determination of our sector/industry exposure, for example, is our bottom-up analysis of credit fundamentals and relative value on an issue-by-issue basis. We conduct in-depth analysis on 20-plus industries in both the U.S. and Europe. High-level sector/industry views in our bank loan portfolios are first shaped through the top-down macroeconomic, interest rate, credit, and industry themes.
PGIM Fixed Income employs a disciplined, three-step investment process to manage Global Senior Secured Loan Portfolios:
1 There is no guarantee that these objectives will be met.
2 On average, over a full market cycle defined as three to five years.
No risk management technique can guarantee the mitigation of elimination of risk in any market environment.
Source: PGIM Fixed Income as of December 31, 2020.