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Market Updates

White Paper The Fed Quickly Surpasses Its Financial Crisis Efforts

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

Over the past week, the Federal Reserve has rolled out an extraordinary phalanx of measures, which already exceed the force and scope of the interventions put in place during the global financial crisis. The Fed is signaling that it will do whatever it takes to restore liquidity and smooth functioning to financial markets, and we expect that the markets should feel the broad effects of the Fed’s measures over the next 10 days, and we expect that these actions will help soothe the extraordinary volatility that has erupted. A question that arises, however, is why the Fed’s actions have not calmed the markets more rapidly? And why have interventions at such massive scale proved necessary?

Webinar Market Outlook: An Update From Our Chief Investment Officer

Listen to a brief market update from Mike Lillard, Head of PGIM Fixed Income and Chief Investment Officer. This webinar is available on-demand and was recorded on March 26, 2020.

 

White Paper The Fed’s Further Action to Combat the Virus Fallout

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

The Fed continues to follow its playbook from the global financial crisis—announcing on Sunday a broad-based package of monetary-easing measures. By any historical standard, the scale and scope of these actions was extraordinary. Even so, markets were expecting extraordinary action and have fallen since the Fed’s announcement. Notwithstanding today’s drop in asset prices, we believe the Fed’s moves are significant and will, over time, provide important support to the economy and markets.

Webinar Market Reaction: Emerging Markets Debt Update

Mar 12, 2016

Join PGIM Fixed Income's Cathy Hepworth, Co-Head of Emerging Markets Debt, and Senior Portfolio Manager Michael Collins, CFA for a market update on Emerging Markets Debt. This on-demand webinar includes an overview of recent market volatility, the impact to the Emerging Markets Debt sector, and our thoughts on risks and opportunities for investors going forward. 

Webinar Market Reaction: High Yield Update

Mar 12, 2016

Join PGIM Fixed Income's Robert Cignarella, Head of U.S. High Yield, and Senior Portfolio Manager Michael Collins, CFA for an update on the High Yield market following the dramatic spread widening in this sector earlier this week. This on-demand webinar covers recent market volatility, the impact to the High Yield sector, and our thoughts on risks and opportunities for investors going forward. 

Webinar The Way Forward Amidst Market Volatility

Mar 9, 2020

Join PGIM Fixed Income Senior Portfolio Manager Michael Collins, CFA, Nathan Sheets, PhD, Chief Economist and Head of Global Macroeconomic Research, and Robert Tipp, CFA, Chief Investment Strategist and Head of Global Bonds for an informative on-demand webinar that aims to address the recent market volatility with a focus on the way forward for fixed income investors. The panel also discusses the latest on COVID-19 and its impact on global growth, bond market liquidity, supply chain issues, and the broader, long-term economic repercussions.

Webinar Market Reaction: Collapse in Crude

Mar 9, 2016

Join PGIM Fixed Income Senior Portfolio Manager Michael Collins, CFA together with Gary Stromberg, Principal, U.S. High Yield Credit Research, and David Winans, Principal, U.S. Investment Grade Credit Research, for an insightful discussion on recent market volatility and the collapse in crude oil. This on-demand webinar aims to help investors make sense of recent activity in the energy sector and its impact on the bond market.

Recent Thought Leadership

Trip Notes: Sub-Saharan Africa—Updates on a Windfall with Complications, an Unsustainable Debt Picture, and a Favorite African Credit

Giancarlo Perasso, CEEMA Economist, Global Macroeconomic Research

Our latest visit to Sub-Saharan Africa helped to update our views on Mozambique, Zambia, and Angola. From a fundamental perspective, country trips help to determine the sustainability of economic growth, which is a particularly key attribute in frontier countries where “no growth” generally means “no repayment.” Our latest trip also underscored that sustainable growth generally requires strong institutions operating with a long-term outlook.

Trip Notes: Brazil—Two Steps Forward, One Step Back

Francisco Campos-Ortiz, PhD, Latin America Economist, Global Macroeconomic Research

After a recent trip to Brazil, we came away somewhat more concerned about the outlook for future reforms and the economy under the government’s stewardship. A recession and a fourth consecutive year of lackluster growth appears likely, and heightened acrimony between the executive and legislative branches could delay, if not derail, the government’s market-friendly reform agenda.

When Social Contracts Fail: The Economic and Investment Implications of Social Protests

Francisco Campos-Ortiz, PhD, Latin America Economist, Global Macroeconomic Research, Mehill Marku, Senior Investment Strategist, Giancarlo Perasso, CEEMA Economist, Global Macroeconomic Research, and Cathy Hepworth, CFA, Co-Head, EMD Team

Throughout various corners of the world, signs of social unrest are surging in both the streets and the ballot boxes. In an attempt to understand the extent to which these developments could affect the economic outlook of the countries involved and to identify fundamental changes in alpha-generating opportunities, this paper begins by establishing a few common characteristics of the protests. It follows with a brief rundown of some of the most talked-about episodes as well as a discussion on the respective macroeconomic and investment implications.

PGIM Fixed Income's Podcast Series: All The Credit

Episode 2 Available Now!

In Episode 2 of All The Credit, Host and Senior Portfolio Manager Mike Collins welcomes Greg Peters, Head of Multi-Sector and Strategy, and Tom McCartan, Principal, LDI Strategies, for a discussion about how active fixed income managers like PGIM Fixed Income extract alpha across global fixed income markets. In addition to discussing their recent paper on the topic, Capturing the Opportunity of Constraints, Greg and Tom also share their insights on their current best ideas in the fixed income market and where investors could benefit from market dislocations and mispricings.

Subscribe and listen now on the platforms below by clicking on the icons, or search for "PGIM Fixed Income All the Credit" wherever you listen to podcasts.

                                  

Footnotes

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.

Prudential Financial, Inc. of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. Prudential, PGIM, their respective logos and the Rock symbol are service marks of PFI and its related entities, registered in many jurisdictions worldwide.

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