- Macro Economic Perspectives
- Interest Rates & Fixed Income Opportunities
- Liability Driven Investing
Fixed Income Opportunities
Robert Tipp, CFA, Managing Director, Chief Investment Strategist, Head of Global Bonds, PGIM Fixed Income, April 2017
Does the recent rebound in inflation and G-3 yields portend the beginning of the end for a bull market that has spanned more than three and a half decades? Or does the increase in rates driven by the Trump bump, the ECB taper, and the so-called reflation trade turn out to be yet another buying opportunity, similar to the taper tantrum and all the other selloffs along the way?
Robert Tipp, CFA, Managing Director, Chief Investment Strategist, Head of Global Bonds, PGIM Fixed Income, August 2016
While some may blame the past year's market volatility on China’s economic slowdown, falling commodity prices, or more recently Brexit, this paper discusses the possible culpability of overzealous monetary policy. We consider this possibility, where policies may be headed next, and why this backdrop may be good for the bond market.
Gary Horbacz, Principal, Structured Product Team, and Jason Pan, Analyst, PGIM Fixed Income, April 2016
Gary Horbacz, Principal, Structured Product Team, and Jason Pan, Analyst, shine a spotlight on an often overlooked fixed income sector: CMBS Interest Only Securities. In the paper, they explain why select CMBS IOs offer a favorable risk-return profile in the current environment.
John Vibert, Managing Director, Co-Head, Structured Products, PGIM Fixed Income, October 2015
Non-agency RMBS have delivered standout performance, but as spreads have tightened, investors have increasingly questioned whether value remains. Our response to this question is an emphatic "yes." The legacy non-agency RMBS market remains a $650+ billion repository of yield and spread in a fixed income landscape that is increasingly devoid of both.
John Di Paolo, CFA, FSA, Principal, Structured Product Research Team, Brian Juliano, Principal, Portfolio Manager, Leveraged Finance Team and Edwin Wilches, CFA, Vice President, Portfolio Manager, Leveraged Finance Team, Prudential Fixed Income, September 2015
As a nuanced asset class, successful CLO investing requires strength in both quantitative structured credit and traditional corporate credit analysis—two disparate competencies not typically found in most investors. CLO tranche analysis, therefore, comprises a blend of art and science. This paper describes both the qualitative and quantitative steps that shape PGIM Fixed Income's investment process for CLO tranches.
Brian Barnhurst, CFA, High Yield Credit Analyst and David Winans, Principal, Investment Grade Corporate Bond Analyst, PGIM Fixed Income, May 2015
The arrival and subsequent exploitation of U.S. shale has disrupted oil market equilibrium, ushering in a period of global oil abundance. With this, the unique production characteristics of shale, most notably the shorter-cycle nature of shale output and continued improvement in drilling productivity, have profound implications for global oil markets.
Eric Schiller, CFA, Principal and Senior Portfolio Manager, PGIM Fixed Income, June 2014
Despite an environment of low volatility and strong returns, many active equity managers still struggle to outperform their benchmarks over the long term. It is a phenomenon that underscores the attraction for portable alpha as a concept, particularly its potential for uncorrelated performance and long-term alpha generation.