All The Credit, Episode 7
In episode seven, Host and Senior Portfolio Manager Mike Collins welcomes John Vibert, PGIM Fixed Income's Head of Securitized Products.
One of the striking features of the recent stress in the U.S. repurchase (repo) market is the culmination of factors-including developments in monetary policy, banking regulations, Treasury issuance, and corporate tax payments-that contributed to the pressure. While these factors may result in some continued bifurcation in short-term money market rates over the medium term, the mechanics of monetary policy will likely address and mitigate the recently emerged pressure in the near term.
Given recent headlines regarding the weakening quality of leveraged loans, Edwin Wilches, U.S. Bank Loan & Structured Products Portfolio Manager, addresses the potential impact on Collateralized Loan Obligation (CLO) tranche investing and provided his insight on these topical investments.
* Gross assets under management includes the reinvestment of securities lending proceeds. Assets are based on company estimates, holdings are subject to change (rounded). Values may not sum due to rounding.
** ABS includes auto lease, auto loans, sub-prime auto, credit cards, and ‘other’. ‘Other’ includes consumer related (student loans, RV, timeshare, wireless, unsecured consumer loans), commercial related (equipment, flees, floor plan, small business, SBA), corporate (rental car and railcars), structured settlement and International ABS.
Source: PGIM Fixed Income. Assets as of September 30, 2020. Staffing as of September 30, 2020.