PHYL News and Press, PGIM Active High Yield Bond From 11/01/22

Summary The Fed is going to meet this week and the course of the stock and bond markets, at least for a while, will be determined by what is decided at the FOMC meeting. Household and corporate balance sheets are remarkably liquid. Financials, real estate, and industrials led ...

Summary It was a difficult third quarter, with the S&P 500 down nearly 5%, which added to the painful year-to-date returns investors have experienced across the board. While the market’s expectations have also moved higher regarding rate hikes, they’ve remained a...

Summary Where opportunities might be emerging in the battered bond market. Why the bond market may face even more volatility. Bond market volatility. Is the bottom in sight? Global bond markets have suffered their worst selloff in decades, as central banks ag...

Summary Year-to-date, allocations to floating rate notes have resulted in a more than 20% performance differential compared to U.S. 10-Year notes. Rising rates explain why owning the same securities as the Agg but reducing the maturity profile (1–5 years) led to losses that...

Summary In 2022, many asset classes that were highly correlated on the way up are remaining highly correlated on the way down. The price of incremental risk in some fixed income markets has de-compressed. We believe the role of fixed income in diversified portfolios will be as...

Summary Persistent inflation spurred the US Federal Reserve to raise interest rates aggressively in the third quarter, with 0.75% hikes in both July and September. Earnings estimates for equities had continued to climb during the early part of the year and only started to moderate...

Summary Global GDP growth is still expected to be positive in 2022 (excluding Russia) but is expected to fall fairly dramatically in 2023. The U.S. Q3 2022 earnings season has just begun, and the outlook is for lower but still positive revenue and earnings growth. Inflation wi...

Summary As has been the case in recent weeks, the stock market finds itself in a position where various technical factors, market internals, positioning and sentiment are suggesting this sell-off may be overdone and a short-covering rally due. While the ‘pain trade’ ...

Summary Financial markets have entered a period of head-spinning volatility. Consumer inflation remains at record highs across major developed economies. Higher yields will bring new income-generating opportunities and significant shifts in risk-return assessments. ...

Summary After the initial stages of the Ukraine crisis and amid the Federal Reserve’s aggressive hiking cycle, sector dispersion is now at 41%. The global financial crisis was led by financials and autos trading significantly wider, and tech/telecom was the driver of disper...