Loco for Emerging Markets Local Debt and FX
After posting solid total returns and generally outperforming most major credit indices from January 2016 to Q3 2017, investors may question whether EM local currency bonds can continue to post relatively strong returns. This paper outlines the dynamics that led to the underperformance of EM local debt from mid-2011 through early 2016, why the asset class is now on solid footing, and the attractive relative value opportunities that exist within EM local debt and FX.
1st Quarter Outlook
The two diverging factors set to unfold in 2018—a broad loosening of US fiscal policy countered by gradually tightening monetary policies among some of the world’s major central banks—underscore investors’ challenge of recognizing directional cues throughout the year. In this edition of the Quarterly Outlook, PGIM Fixed Income examines what these signals might look like across the fixed income markets, the global economy, and the various corporate sectors.
Following in Japan's Footsteps: Have the U.S. and Euro Area Seen a "Lost Decade"?
When the Japanese financial bubble burst in the early 1990s, the resulting developments looked idiosyncratic and unusual to analysts elsewhere in the world. Now, more than 25 years after the bursting of the bubble, the Japanese experience looks much less idiosyncratic. The U.S. and Europe, in the aftermath of the global financial crisis, seem to be experiencing many of the same headwinds that Japan did two decades ago. In our comparison of the experiences of these three major economies, we draw some conclusions about what may lie in store for the U.S. and euro area economies.
Watch: U.S. Tax Reform - Global Implications
Nathan Sheets, Chief Economist and Head of Global Macroeconomic Research, PGIM Fixed Income discusses the global implications of the tax legislation and the potential impacts to fixed income investors.