Leveraged Finance Global Bank Loans

Investment Objective

 PGIM Fixed Income's Global Senior Secured Loans Strategy seeks to provide +100 bps in excess return over a customized blend of the Credit Suisse Leveraged Loan Index and the Credit Suisse Western European Leveraged Loan: Euro Denominated (USD Hedged), or a similar market index.1

1 There is no guarantee that this objective will be met.

Investment Philosophy

PGIM Fixed Income manages Global Senior Secured Loan portfolios with primarily a bottom-up investment approach. The most important determination of our sector/industry exposure, for example, is our bottom-up analysis of credit fundamentals and relative value on an issue-by-issue basis. We conduct in-depth analysis on 20-plus industries in both the U.S. and Europe. High-level sector/industry views in our bank loan portfolios are first shaped through the top-down macroeconomic, interest rate, credit, and industry themes.

Investment Process

PGIM Fixed Income employs a disciplined, three-step investment process to manage Global Senior Secured Loan Portfolios:

  1. Leverage firm resources to define the current global backdrop and risk appetite

  2. Security selection, portfolio construction, risk budgeting

    Macroeconomic & Fundamental Research

    Market strategists provide continual macroeconomic assessment

    Research team evaluates all issuers in the universe. Focus on downside protection:

    • Asset Quality
    • Capital Structure
    • Covenants
    Arrow Right

    Relative Value Analysis

    Portfolio managers evaluate and maximize relative value among approved universe:

    • Choose regions & select countries that reflect macro perspective
    • Choose fundamentally strong credits with best relative value
    Arrow Right

    Portfolio Construction

    Credit Analysts, portfolio managers, and risk managers provide continuous oversite:

    • Actively monitor all credits
    • Closely monitor industry and issuer exposures
  3. A rigorous process is employed to monitor risk at all levels

Senior Portfolio Managers

 

Robert Cignarella

CFA, Head of U.S. High Yield, Co-head of Global High Yield

 

Jonathan Butler

Head of European Leveraged Finance, Co-head of Global High Yield

 

Brian Juliano

Head of U.S. Bank Loans