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 Leveraged Finance

 

Jonathan Butler

Head of European Leveraged Finance

 

Brian Juliano

Head of U.S. Bank Loans