Credit Continuum

PGIM has nearly 150 yearsof credit investing experience for Prudential Financial. Our strong underwriting standards, disciplined approach to risk management, and deep expertise in portfolio diversification have helped us and our clients navigate volatile credit markets. As the credit landscape shifts, opportunities emerge and PGIM remains confident in our investment expertise and ready to scrutinize these opportunities and provide funding to companies where others may step back.

This Insights Hub showcases our latest views and convictions on credit markets, ways clients can invest, and emerging opportunities. To learn more about PGIM's credit offerings, click here.

The Wide Spectrum of Credit

Beyond Convergence

Public and private credit markets have been merging, changing how capital is allocated. Investors now need frameworks that integrate both, aiming for better results and liquidity.

 

The main challenge is managing public and private assets together effectively. The integration spotlights their combined performance in a single portfolio.

The Compelling Convergences in a Credit Income Approach

The challenge no longer lies in choosing between public and private, but in managing both together with clarity. This convergence sharpens the focus on how these assets perform together in a single portfolio.

Senior CLO Liquidity: A Class of its Own

Benefiting from structural and technical characteristics unique to securitized products, senior CLO tranches are among the more liquid instruments in the fixed income universe.

Sector Concentration and Diversification

Headline vs. Health in Private Credit

BDCs have come under increased scrutiny amid concerns emanating from AI uncertainty and redemption requests that exceed their contractual obligations. Our exposure to software in our BDC strategies is less than 6% versus the industry exposure of 20%.

The Case of AI Disruption and CLO Dispersion

AI-driven volatility is also fueling dispersion across the leveraged loan market with pronounced effects on CLOs. Pressure has so far been concentrated in subordinated tranches, while senior tranches have remained stable.

Investors at the Private Credit Gate

We believe the recent change in sentiment is a welcome phase of the investment cycle, which will allow stronger managers to demonstrate better returns. 


Featured Funds

PGIM AAA CLO ETF 

Ticker: PAAA

Seeks to maximize total return through a combination of current income and capital appreciation, investing primarily in U.S. CLOs rated AAA or equivalent.

PGIM Total Return Bond Fund

Ticker: PDBZX

Seeks total return by investing in a diversified portfolio of bonds from multiple fixed income sectors.

PGIM Private Credit Fund

Non-traded Business Development Company focused on sponsored and non-sponsored middle-market direct lending.

PGIM Credit Income Fund

Ticker: PGIWX

Interval fund with a global multi-sector strategy investing across public and private credit markets.

1Includes legacy asset management activity through PFI, founded in 1875.

PGIM sourced data as December 31, 2025 (unless otherwise noted). Assets represent gross AUM/AUA unless otherwise noted. Asset totals may not sum due to rounding and double counting. AUM/AUA are based on company estimates and subject to change.  

 

Consider a fund’s investment objectives, risks, charges, and expenses carefully before investing. The prospectus and summary prospectus contain this and other information about the fund. Contact your financial professional for a prospectus and summary prospectus. Read them carefully before investing.


Investing involves risk. Some investments have more risk than others. The investment return and principal value will fluctuate and investor's shares when sold may be worth more or less than the original cost. Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise. Asset allocation and diversification do not assure a profit or protect against loss in declining markets. There is no guarantee a Fund's objectives will be achieved. The risks associated with each fund are explained more fully in each fund's respective prospectus. Consult with your attorney, accountant, and/or tax professional for advice concerning your particular situation.


Investment products are distributed by Prudential Investment Management Services LLC, member FINRA and SIPC. PGIM Investments is a registered investment advisor and investment manager to PGIM registered investment companies. PGIM Fixed Income and PGIM Real Estate are units of PGIM, Inc., a registered investment advisor. PGIM Limited acts as a subadvisor to all fixed income funds. PGIM Limited is an indirect, wholly-owned subsidiary of PGIM, Inc. (PGIM), the principal asset management business of Prudential Financial, Inc. (PFI), a company incorporated and with its principal place of business in the United States. PGIM Real Estate is a unit of PGIM, Inc., a registered investment advisor. PGIM Private Capital is PGIM’s dedicated private credit asset management business. All are Prudential Financial affiliates. PGIM is the principal asset management business of Prudential Financial, Inc. (PFI), and a trading name of PGIM, Inc. and its global subsidiaries and affiliates.

© 2026 Prudential Financial, Inc. and its related entities. PGIM, PGIM Investments, Jennison Associates, Jennison, PGIM Fixed Income, PGIM Limited, PGIM Quantitative Solutions, PGIM Real Estate, and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation. Clients seeking information regarding their particular investment needs should contact their
financial professional.

 

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