A Catalyst for Confidence in High Yield
PGIM Fixed Income’s Jonathan Butler doesn’t mince words regarding conditions for high yield bonds.
Source returns without overreaching on risk.
Bond yields occupy heights not seen in years, offering uniquely promising income potential following historically aggressive monetary moves to lift interest rates. Adding to the allure, market volatility has contributed to dispersion among fixed income securities in a way that fosters compelling conditions for generating excess returns. Still, the bond market backdrop remains decidedly uncertain, an environment that calls for a thoughtful, selective approach to isolating opportunities and managing risk.
We offer strategies that employ risk management, portfolio management and credit research equally in an effort to generate returns that align with our strong long-term track record while limiting volatility. Our solutions are designed to help satisfy a wide range of investor aspirations.
Entities that conduct themselves in a manner consistent with strong ESG standards demonstrate a commitment that bodes well for their business operations, whereas those with lower-end sustainability indicators invite risks that inject uncertainty into their credit outlooks. Given that each company’s ESG-relevant actions correspond with potential investment implications, ESG factors are integrated into fundamental analysis and the decision-making process through a proprietary ESG impact ratings framework.
With a history going back more than 140 years, PGIM Fixed Income is home to one of the industry’s largest and most experienced research teams. On average, the 358 members of the fixed income team—encompassing credit research, portfolio management and risk management—bring well over two decades of experience to their decision-making.
PGIM Fixed Income’s Jonathan Butler doesn’t mince words regarding conditions for high yield bonds.
Read on for insights on how the credit landscape is changing and what role a Multi Asset Credit strategy could play in an investor’s portfolio.
Katharine Neiss shares her insights on the effectiveness of these hikes, the economic outlook, and expectations for a new bond bull market.
Sources of data (unless otherwise noted) are as of 30 June 2023.
1Assets under management (AuM) are net unless otherwise noted. AuM totals may not sum due to rounding and double counting. AUM total includes $16 billion in assets managed by PGIM Fixed Income for affiliated businesses, $79 billion in PGIM Japan assets, and $130 million of which is sub-advised by PGIM Private Capital.
2Past Performance is not a reliable indicator of future performance. Awards and ratings are subject to change without notice and do not constitute investment advice or an offer to buy any security. Please click on the disclosure link, for further information on the methodology.
3Source: Morningstar. Based on all share classes with at least a 1-year track record in a ranked Morningstar EAA Category (Based on all share classes ranked by Morningstar).
For Professional Investors only. All investments involve risk, including the possible loss of capital.
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