PHYL News and Press, PGIM Active High Yield Bond From 04/21/22

It looks like the war will last quite a bit longer than investors originally expected. This causes problems for our inflation situation, which ironically may mean a more aggressive Fed interest rate policy. The Fed may not be able to do anything about supply chain issues, but it sure ...

If China were to continue to pursue a Zero Covid policy amidst rising case counts, supply chains originating in Asia could get shut down again. On the food front, wheat is particularly vulnerable to a prolonged conflict, which has been reflected in the performance of wheat futures. ...

Many market pundits have advocated a strategy of “buying the dip” after significant selloffs, but does it always make sense to do so? Our analysis of asset performance following geopolitical events, alongside a deteriorating macro context, lead us to prefer a nimble and ...

Global growth uncertainty has accelerated, while inflation appears likely to persist. Still, we anticipate neither recession nor stagnation; moreover, central bank tightening expectations have likely peaked, potentially normalizing interest rate volatility and supporting spread sector...

As investors continue to digest the likely path of this tightening cycle, we think the dramatic moves of recent weeks are set to ease, laying a good foundation for credit investors. We now expect the Fed to hike rates by 50 basis points in both May and June, followed by a sequence of ...

The 10-year Treasury yield spiked to 2.72% on Friday, the highest since the February-December 2018 era. High Grade AA-rated corporate bond yields have been rising too, but since mid-March more slowly than the equivalent Treasury yield. Junk bond yields actually fell over the past ...

High-yield bonds have a reputation for volatility. High-yield bonds supply a consistent income stream that few other assets can match. High-yield bonds may experience some near-term volatility. For further details see: The One Metric All High-Yield Investors Should Know ...

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...