Investment Capabilities

PGIM Fixed Income’s investment capabilities cover a global range of broad market and sector-specific strategies, as well as alternative and LIBOR-based strategies

  • Strategy Focus: Core Conservative, Core, Intermediate Core, Core Plus, Global Core, Global Aggregate Plus, Absolute Return

    •    Higher expected alpha targets relative to passive strategies
    •    Tactical duration, yield curve, credit quality, country, and currency management
    •    U.S. and non-U.S. investment grade, high yield, emerging market issuers
    •    Issues denominated in U.S. dollars and non-dollar currencies
    •    Broad range of fixed income sectors, subsectors, maturities, and derivatives
    •    Bottom-up, research-driven subsector/security selection
    •    Comprehensive approach to risk management

     

     

  • Strategy Focus: Global Corporate, U.S. Corporate, European Corporate

    •    Seeks to maximize excess returns from bottom-up security selection and industry allocation
    •    De-emphasizes active duration management
    •    Active relative value trading seeks to add additional value
    •    Tactical overweights/underweights to industries, issuers, and regions
    •    Top down element influences country views, credit biases, and overall risk
    •    Focuses on U.S. and European credit
    •    Highly integrated team based in the U.S. and in Europe

     

     

  • Strategy Focus: U.S. High Yield, European High Yield, Global High Yield, U.S. Bank Loans, Global Bank Loans, CLOs

    •    Seeks to maximize excess returns from bottom-up security selection and industry allocation
    •    Focuses on higher quality and broad market high yield
    •    U.S., European, and Global mandates
    •    Access to a broad network of new issue and secondary bank loans
    •    Generally no oversized sector/issuer bets with significant emphasis on default avoidance
    •    Rigorous screening/ approval and monitoring processes
    •    Manages CLO assets within both cash and synthetic structures
    •    Highly integrated team based in the U.S. and in Europe

  • PGIM Fixed Income has extensive experience as a global manager for collateralized loan obligations within cash and synthetic structures. Please visit our CLO site for additional information.

  • Strategy Focus: Hard Currency, Hard/Local Blend, Local Currency

    •    Seeks to maximize excess returns from country/security selection as well as opportunistic positioning
    •    Tactical, hard currency allocations to sovereigns, quasi-sovereigns, and corporates
    •    Bottom-up security selection combined with top-down country selection
    •    Strategic positions in local currency sovereigns and EMFX

     

  • Strategy Focus: Long Government/Credit, Long Duration Corporate, Long Duration LDI

    •    Seeks to maximize excess returns from top-down sector and bottom-up subsector/security selection
    •    Focuses on high-quality spread product, including structured product
    •    Tight duration match to liabilities or a benchmark
    •    Customized to client requirements

     

     

     

  • •    Research-based approach to structured credit
    •    Maintains an internal rating for each security held in a portfolio
    •    Analyzes collateral, transaction structure, underwriting, and macro factors
    •    Maintains comprehensive views on subsectors' credit profiles and trends
    •    Continually evaluates securities' attractiveness by estimating expected cash flows
    •    Regularly assesses creditworthiness while a security is held in any portfolio

     

  • Strategy Focus: Liquidity Relative Value, Emerging Market Long/Short

    •    Seeks to maximize total return on a risk-adjusted basis
    •    Limited or no long-term correlations to major debt and equity markets
    •    Utilizes proprietary relative value models
    •    Risk hedged in attempt to foster more stable returns
    •    Liquidity relative value portfolios invest only in liquid government-related markets
    •    EM long/short consists of long/short opportunities throughout the sector

     

     

  • By working closely with clients to fully understand investment objectives, guidelines, risk constraints, and preferred benchmarks, we create custom portfolios designed to meet specific investment requirements. Contact PGIM Fixed Income to discuss custom portfolio solutions.

     


This website is intended for Institutional and Professional Investors only. Your capital is at risk and the value of investments can go down as well as up.

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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