PHYL News and Press, PGIM Active High Yield Bond From 04/04/22

Recent events have just added an additional inflationary impulse into an already high-inflation environment. Europe is somewhat elevated relative to the past but well below what we see in the US. So really, from an investor’s standpoint, this high-yield opportunity in credi...

Despite rising inflation and macroeconomic volatility, most sectors in non-investment grade credit concluded last year with solid credit fundamentals. We believe the strength of the U.S. consumer supported this pricing dynamic, with pandemic savings approximating $2 trillion. The ...

Follow the Money is a series of brief, information-rich posts that I will publish periodically but not on a fixed schedule. After rallying for 9 of the last 11 days, the S&P 500 went from down -13% to down just -3.4%. Growth has been hit hard by the slide in tech stocks this y...

The conflict will inevitably drive food prices higher. The European Central Bank announced an acceleration of its tapering program. Commodity markets may look very different than today, with potentially large changes in sources of production, as well as in transportation and refin...

Pick any barometer of costs these days, and the story is the same: Prices are up - and in a dramatic fashion. The first thing that jumps out is the dismal performance of most asset classes during periods of low growth and high inflation - otherwise known as stagflation. A solid fo...

The US Federal Reserve is turning increasingly hawkish—hiking rates fast enough to slow inflation while maintaining economic growth will be a monumental task. The Franklin Templeton Investment Solutions team opines on what to expect from the Fed and gauges whether it is already...

The Fed struck a hawkish tone at its latest meeting, but Franklin Templeton Fixed Income Chief Investment Officer Sonal Desai believes it still underestimates how far rates will likely need to rise—and so do the markets. Geopolitical uncertainty has caused energy prices to surg...

Recent volatility has created near-term uncertainty in the non-investment grade market. Investors will continue to target companies of various sizes that have good business plans, visibility into future cash flows, and perhaps most importantly, good management teams. Investment ba...

Now, more than two-thirds of managers expect core inflation to stand between 2.5% and 3.5%. Managers sense the end of the deleveraging trend that was observed in 2021. Global leveraged managers believe that the upside remains limited, with no expectation of spread tightening. ...

U.S. non-investment grade credit market is well positioned to navigate the current environment. Issuers have been largely successful in passing through inflationary costs, with a strong consumer providing issuers with the ability to offset higher costs through pricing and volume growt...