Leveraged Finance U.S. Bank Loans

Investment Objective

PGIM Fixed Income's U.S. Senior Secured Loans Strategy seeks to provide +100 bps in excess return over the Credit Suisse Leveraged Loan Index or a similar market index, over a full market cycle.1,2

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

2 On average, over a full market cycle defined as three to five years.

Available Vehicles

Separate Account

Mutual Fund

Investment Philosophy

Our U.S. Senior Secured Loans investment philosophy is to build balanced and well-diversified portfolios of leveraged loans in companies with robust operating characteristics and defensible market positions. We look for management teams with strong track records and experience in managing levered capital structures. Above all, we focus on companies’ ability to generate stable cash flow.

Investment Process

PGIM Fixed Income employs a disciplined, three-step investment process to manage U.S. 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

 

Brian Juliano

Head of U.S. Bank Loans