Weekly View from the Desk
PGIM Fixed Income shares their weekly views and outlook for fixed income markets.
Credit markets have endured a historic decline in economic activity, unprecedented volatility, and a hyper-speed adjustment in valuations, as the current macro environment is weighed down by uncertain economic growth and corporate earnings. While the potential for a major default and downgrade cycle looms, the massive support of global central banks is providing a backstop and perhaps a tailwind for markets, improving the potential for credit to outperform going forward. Against this backdrop, PGIM Fixed Income believes we are entering a ‘golden age of credit investing’ presenting an attractive opportunity for active managers with deep expertise to add alpha across the credit markets.