PGIM Fixed Income 4Q Outlook

In addition to their views on global growth, expectations for the Fed funds rate, and potential opportunities in the fixed income marketplace, highlights include:

•    Short Run: Growth is slowing globally, with PGIM Fixed Income forecasting 3.3% global GDP growth in 2019 and 3.4% in 2020, down from 3.8% in 2018.
•    Long Run: U.S. rates are expected to decline over time given high debt levels and unfavorable demographic trends.
•    U.S. Rates: Across multi-sector portfolios, the manager continues to maintain a moderately long duration bias relative to the benchmark.
•    Spread Sectors: High-quality (mostly AAA-rated) structured products such as commercial mortgage-backed securities (CMBS) and collateralized loan obligations (CLOs) with very attractive spread levels continue to be in favor.

 

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For a PDF version of the outlook, click here