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Time-Tested Strategy. Global Scale.

​For nearly 90 years, through all market cycles, we have drawn on a deep discipline in credit research and risk management to add value for our clients.1  We're an active global fixed income manager bringing scale, stability, and broad capabilities to the pursuit of consistently strong, risk-adjusted returns.

Now On:

Fourth Quarter Market Outlook

This edition of our quarterly outlook features the following:

•    In “Can You Make Money Standing Still?” Robert Tipp, CFA, Chief Investment Strategist and Head of Global Bonds, looks at conditions across several major asset classes. Given the current backdrop, Tipp indicates that maintaining a relative-value perspective may reveal opportunities from sector allocation, yield curve positioning as well as issuer and currency selection.  

•    “Global Growth: Less Synchronized, but Still Intact…”, by Nathan Sheets, Chief Economist and Head of Macroeconomic Research, and PGIM Fixed Income’s macroeconomics team, isolate two key factors—the persistent pressure across the emerging markets and the escalating trade war—that have contributed to the fraying of synchronized, global growth. The piece subsequently examines how these global issues might evolve as 2019 approaches.

•    In “When Giants Collide: The U.S.-China Trade War,” Sheets reviews the steps in the trade war thus far, the next potential moves that each side might take, and how each country’s economic growth could be affected.

•    Finally, click here to register for our upcoming live webinar on “The Case for Global Bonds” with Robert Tipp and Arvind Rajan, PhD, Head of Global and Macro. The webinar offers a concise review of the recent paper of the same title and will examine three potential benefits provided by a dynamic allocation—generally currency hedged—to a broad cross section of global bonds.

Lower Range to Drive Stealth Bull Market in Bonds

Robert Tipp, CFA, Managing Director, Chief Investment Strategist, Head of Global Bonds

In this paper, Tipp explains how some forecasters may think the bear case for DM rates has strengthened—and maybe it has in the short term with G3 yields ticking higher recently. Tipp subsequently looks at the evidence that has emerged over the last several months supporting a “low for longer” thesis for DM rates over the long term. He also provides a new long-term central tendency for the U.S. 10-year yield and his expectations for the 10-year bund and 10-year JGB yields going forward.

Featured Thought Leadership

The Fed’s Swap Lines During the Crisis: Lender of Last Resort on a Global Scale

Nathan Sheets, PhD, Chief Economist, and Head of Global Macroeconomic Research

A decade after the worst of the Global Financial Crisis (GFC), Nathan Sheets, PhD, former director of the Division of International Finance for the Federal Reserve Board, looks back at the instability of the global financial system and details the role of the Federal Reserve as the international lender of last resort.

The Case for Global Bonds

Arvind Rajan, PhD, Managing Director and Head of Global and Macro, and Robert Tipp, CFA, Managing Director, Chief Investment Strategist, and Head of Global Bonds

In this white paper, we examine how an actively-managed, hedged global bond portfolio can reduce volatility and improve return efficiency relative to a domestic-only, fixed income allocation over the intermediate to long term.

Weekly View: Relatively Resilient; IMF Meetings

For Professional Investors only. All investments involve risk, including possible loss of capital.

1 Any discussion of risk management is intended to describe PGIM Fixed Income's efforts to monitor and manage risk but does not imply low risk. All investing involves risk, including the risk of loss.

It is for informational and educational purposes only and should not be construed as investment advice or an offer or solicitation in respect of any products or services to any persons who are prohibited from receiving such information under the laws applicable to their place of citizenship, domicile or residence. The views and opinions expressed herein are those of PGIM Fixed Income and are subject to change without notice. PGIM, Inc. is the principal asset management business of Prudential Financial, Inc. (PFI) and is a registered investment adviser with the United States Securities and Exchange Commission.  PGIM is a trading name of PGIM, Inc. and its global subsidiaries. In the United Kingdom, and in various European Economic Area (EEA) jurisdictions, information is issued by PGIM Limited, an indirect subsidiary of PGIM, Inc.   PGIM Limited registered office: Grand Buildings, 1-3 Strand, Trafalgar Square, London, WC2N 5HR is authorised and regulated by the Financial Conduct Authority of the United Kingdom (registration number 193418) and duly passported in various jurisdictions in the EEA.  These materials are issued to persons who are professional clients or eligible counterparties for the purposes of the Financial Conduct Authority’s Conduct of Business Sourcebook. In Japan, investment management services are made available by PGIM Japan Co., Ltd. (PGIM Japan), a registered Financial Instruments Business Operator with the Financial Services Agency of Japan.  In Hong Kong, information is presented by representatives of PGIM (Hong Kong) Limited, a regulated entity with the Securities and Futures Commission in Hong Kong to professional investors as defined in Part 1 of Schedule 1 of the Securities and Futures Ordinance.  In Singapore, information is issued by PGIM (Singapore) Pte. Ltd. (PGIM Singapore), a Singapore investment manager that is licensed as a capital markets service license holder by the Monetary Authority of Singapore and an exempt financial adviser. These materials are issued by PGIM Singapore for the general information of “institutional investors” pursuant to Section 304 of the Securities and Futures Act, Chapter 289 of Singapore (the SFA) and “accredited investors” and other relevant persons in accordance with the conditions specified in Sections 305 of the SFA.  In South Korea, information is issued by PGIM, Inc., which is licensed to provide discretionary investment management services directly to South Korean qualified institutional investors.

The information on this website is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. In making the information available on this website, PGIM, Inc. and its affiliates are not acting as your fiduciary under ERISA, any Department of Labor regulations or any other statutes or regulations.

Any discussion of risk management is intended to describe PGIM Fixed Income’s efforts to monitor and manage risk but does not imply low risk.  All investing involves risk, including the risk of loss.  Fixed Income securities are subject to certain risks, including credit, interest rate, issuer, market and inflation risk.  Foreign and emerging market securities are subject to currency, political, economic and market risks, which may be enhanced in emerging market countries.  High Yield securities are lower rated securities that may have a higher degree of credit and liquidity risk.  Mortgage and asset-backed securities are sensitive to early prepayment risk, a higher risk of default and may be hard to value and difficult to sell.  U.S. government securities may not be backed by the full faith and credit of the U.S.; thus, these issuers may not be able to meet their future payment obligations.  With sovereign debt securities, the issuer or governmental authority that controls the repayment of the debt may not be willing or able to repay the principal and/or pay the interest when it becomes due, in accordance with the terms of such obligations.  Collateralized mortgage obligations may have unpredictable cash flows that can increase the risk of loss.  Public bank loans are subject to liquidity risks of lower rated securities.  The use of derivative instruments may disproportionately increase losses and have a significant impact on performance. They also may be subject to counterparty, liquidity, valuation, correlation and market risks.

There is no guarantee that any investment strategy will achieve its objective under all market conditions or be suitable for all investors.  Each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market.  

The views and opinions expressed herein are those of PGIM Fixed Income and are subject to change without notice.

PFI of the United States is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom.  PGIM, the PGIM logo and Rock design are service marks of PFI and its related entities, registered in many jurisdictions worldwide.

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