The Implications of the U.S.-China Trade Deal Revisited
The completion of the Phase 1 agreement marks a cease fire in the U.S.-China trade war, and the deal underscores several persistent issues that we considered in a white paper published in April 2019. We find that China’s commitments to hike imports from the United States range from those that will be challenging to those that will likely be even more difficult.
Capturing Value in Lower-Rated U.S. High Yield
When evaluating allocations in the current late-cycle environment, the U.S. high yield market remains vastly bifurcated with overvalued BB-rated issues and some deeply discounted weak B- and CCC-rated names. Granted, there are risks to overweighting the lower-quality portion of the market, but given our base case for a prolonged credit cycle, the larger risk to performance could be maintaining overweights to the BB-rated segment of the market, particularly as lower-quality credit spreads imply a far higher default rate than we expect in 2020.
First Quarter Outlooks & Reviews
With the arrival of a new decade, investors are wondering if the next 10 years will look very different than the last. In our latest installment of quarterly outlooks, PGIM experts provide perspective on the markets in 2020 and beyond.
Investing for a New Decade: Bolder Thinking for Better Outcomes
The next 10 years are sure to offer some promising opportunities for investors. Explore a new collection of investment ideas from PGIM experts across fixed income, private debt, real estate and retirement, among others.