PHYL News and Press, PGIM Active High Yield Bond From 11/29/21

November’s modest uptick in volatility, driven by a recalibration of the market’s macroeconomic expectations, could be a sign of things to come. On the surface, November may have appeared to be another month of quiet, range-bound fixed income markets. While we have n...

The Fed confirmed that it will taper its asset purchase program starting later in November, while the Bank of England (BOE) fell just short of raising rates at its November meeting. 55% of managers expect inflation in the U.S. for the next 12 months to stand between 2.26% and 2.75%, w...

How current market and economic conditions could benefit high yield investors, the opportunities and risks right now, and why the asset class is often overlooked or misunderstood. The equity valuation and the access to capital have brought defaults to extremely low levels, and the exp...

We’ve seen a lot of quantitative easing by the Fed. Rates are already at zero, and there’s been a lot of fiscal stimulus that’s been pumped into the system. And we think in this environment, given where valuations are overall, you’re better off leaning more...

In the current commentary we hope to address this October’s unique market ghouls and further how we think resilient portfolios should be oriented around them. It is likely that in time pandemic distortions and extreme base effects will ease, though not immediately, pulling aggr...

Consensus remains cautiously positive on the economic and market outlook for the coming year, but for the first time in 18 months, we have started trimming risk in our views, advocating building dry powder to take advantage of opportunities that arise due to potential short-term market vo...

When facing a rising-rate environment, investors who can’t stomach too much risk should limit - but not eliminate - duration, or sensitivity to interest-rate changes. Investors shouldn’t just shorten their portfolio’s duration; they should get a chunk of it from a...

As we move into Q4, markets are in a tug-of-war involving various good news vs. bad news debates. COVID-19 cases are declining, but central banks are considering tightening monetary policy. Earnings growth is strong, but year-over-year comparisons will become tougher. Employment stati...

The strong economic and market trends of the first half of 2021 wavered during the third quarter. The coronavirus delta variant caught up with the US at the height of the summer, just as vaccinations slowed and concerns grew that inflation might flare and persist. Even so, equity mark...

September was a difficult month for stocks and interest rates, but U.S. high yield proved to be an exception. A common refrain cites U.S. corporate debt at record levels compared to the size of the economy. Currently, investment-grade bonds often start with negative real or even n...