When Spreads Are Tight, Opt for Multi-Sector Credit
Actively investing across multi-sector fixed income can help mitigate volatility during macro uncertainty.
INGREDIENTS FOR EQUITY-LIKE RETURN POTENTIAL
Elevated yields, strong corporate fundamentals and resilient economic trends contribute to a supportive backdrop for high yield bonds, while valuation dispersion fosters compelling conditions for the active pursuit of alpha. The high yield category offers equity-like return potential with less volatility at a time when stocks trade at the upper end of their historic valuation range.
Source: Calculated by PGIM Investments using data from Bloomberg, as of 31/3/2025. Yield-to-worst monthly data for Bloomberg Global Corporate High Yield Index.61 periods since index inception in 1987 in which the YTW for the Index was between 7% and 8%. An investment cannot be made directly in an index. Past Performance is no guarantee of future results.
Equipped to achieve excellence
PGIM Fixed Income team was named “2025 Best Fixed Income Manager” by AsianInvestor in the Asset Management Awards 2025.
*The recognition was based on a comprehensive evaluation process considering both quantitative performance metrics and qualitative assessment by AsianInvestor’sjudging panel. Performance was measured against widely tracked benchmarks with particular attention to risk-adjusted returns during the 2024 calendar year, specifically on the firm’s ability to navigate market volatility and consistent performance across multiple fixed income strategies.
Equipped For Outperformance
Experience and Stability
PGIM Fixed Income has more than five decades of high yield bond investing experience as a firm, with portfolio managers averaging 22 years of experience and credit analysts averaging 15 years of experience.
INTENSIVE RESEARCH
More than 50 leveraged finance professionals based in the U.S., Europe and Asia conduct fundamental research and leverage firmwide insights to manage $97 billion in category assets.
RELENTLESS ON RISK
Informed by a risk-management heritage dating back to 1875, ongoing monitoring on the issuer and market levels aims to mitigate issuer, industry, credit quality, and liquidity risks.
Related Insights
Weekly View from the Desk
PGIM Fixed Income shares their weekly views and outlook for fixed income markets.
Multi-Sector Credit’s Appeal Amid Market Volatility
PGIM Fixed Income explains why current conditions warrant exposure to a diversified and dynamic global credit solution.
Targeting Bonds in Turbulent Markets
PGIM Fixed Income reviews this more volatile environment and opportunities beneath the surface.
The Convergence of Public & Private Credit
The blurring lines between public and private credit are reshaping capital markets.
Sources of data (unless otherwise noted) are as of 31 December 2024.
References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. The securities referenced may or may not be held in the portfolio at the time of publication and, if such securities are held, no representation is being made that such securities will continue to be held.
The views expressed herein are those of PGIM investment professionals at the time the comments were made, may not be reflective of their current opinions, and are subject to change without notice. Neither the information contained herein nor any opinion expressed shall be construed to constitute investment advice or an offer to sell or a solicitation to buy any securities mentioned herein. Neither PFI, its affiliates, nor their licensed sales professionals render tax or legal advice. Clients should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation. Certain information in this commentary has been obtained from sources believed to be reliable as of the date presented; however, we cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance (or such earlier date as referenced herein) and is subject to change without notice. The manager has no obligation to update any or all such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy.
Any projections or forecasts presented herein are subject to change without notice. Actual data will vary and may not be reflected here. Projections and forecasts are subject to high levels of uncertainty. Accordingly, any projections or forecasts should be viewed as merely representative of a broad range of possible outcomes. Projections or forecasts are estimated based on assumptions, subject to significant revision, and may change materially as economic and market conditions change.
