All the Credit

Katharine Neiss, Deputy Head of Global Economics at PGIM Fixed Income, discusses inflation's impact on bond markets. Topics include rate cuts, bonds vs cash, and reflation scenarios in the U.S. and Eurozone. The episode explores market volatility, central bank responses, spread products, inverted yield curves, and the benefits of gradually increasing inflation.

Greg Peters, Co-CIO at PGIM Fixed Income, and Brian Barnhurst discuss scenario-based investing, fixed income opportunities, constructing portfolios, and integrating geopolitics in a conversation on navigating current market dynamics.

Exploring geopolitics in emerging markets, Cathy and Mehill discuss managing active wars, China's impact on global markets, and the Middle East dynamics. They emphasize understanding risks, capital flows, and finding opportunities amidst uncertainties.

With significant repricing across all commercial real estate (CRE) sectors, normalizing rent growth, and rising expenses, it’s time to revisit and reassess the CRE space. Get our thoughts on the CRE market today, implications for the banking sector, and risk factors we’re monitoring. This episode features PGIM Fixed Income’s David Jiang, U.S. Investment Grade Credit Research Analyst, Jason Pan, CFA, FSA, Securitized Products Credit Research Analyst, and host, Tom Porcelli, Chief U.S. Economist. Recorded on March 12, 2024.

Guillermo Felices and George Jiranek of PGIM Fixed Income analyze U.S. interest rate fluctuations and their impact on the economy, discussing resilience, sector responses, unique credit spread dynamics, and the Federal Reserve's approach to interest rates. They explore unexpected market behaviors, productivity shifts, and the interplay between interest rates, economic growth, and asset prices.

In the current climate of rising premiums and inflationary pressures, the insurance industry faces significant challenges. In this episode of All the Credit®, Tom Porcelli, Chief U.S. Economist, and Pinto Suri, U.S. Investment Grade Credit Research Analyst, examine the complexities of the auto and home insurance sectors, challenges facing issuers in the post-pandemic environment, effects on insurers' pricing strategies, implications for CPI, and considerations for investors. Recorded on January 25, 2024.

In recent months, GLP-1 drugs have been thrust into the spotlight, amplified by increased media attention and several headline-grabbing comments from large retailers. In this episode of All the Credit®, host Brian Barnhurst, CFA, Co-Head of Credit Research, is joined by U.S. Leveraged Finance Credit Research Analysts, Elizabeth Halpin, CFA, Richard Kus, CFA, and Scott Swanson, CFA, to consider the investment implications of GLP-1s across fixed income markets and industries. Recorded on December 19, 2023. This content is not intended to be a substitute for professional medical or health advice, diagnosis, or treatment, and does not constitute medical or other professional advice in any form.  

Rates have sharply increased in the past 18 months and at PGIM Fixed Income, we anticipate they will remain elevated. In this episode of All the Credit®, Brian Barnhurst, CFA, Co-Head of Credit Research, is joined by guests Mick Meyler, Head of Developed Market Rates, and Tom Porcelli, Chief U.S. Economist, to examine the core factors supporting our view of higher-for-longer rates. The trio also discuss the end of the hiking cycle, weigh the impact of fiscal deficits on long-term rates, and explore the interplay between rates, curve shape, and the economy. Recorded on November 17, 2023.

While U.S. money center banks have emerged as an attractive subsegment of the U.S. investment grade corporate market, European banks face unique challenges sustaining their market prominence. Given the fragility of the Eurozone’s economy, with an anticipated growth of 0.5% both this year and next, the spotlight on the relative attractiveness of European banks has made its way to the forefront.  In this episode of All the Credit ®, host Michael Roper, CFA, European Investment Grade Corporate Bond Portfolio Manager, along with guests Chris Alquiza, CFA, U.S. Investment Grade Corporate Bond Portfolio Manager, and James Hyde, European Investment Grade Credit Research Analyst, dissect the perception of risk and relative value between U.S. banks and EU banks from a U.S. market perspective, how trading relationships might be impacted by this, and provide bottom-up thoughts on European bank fundamentals and where we think they’re headed. Recorded on October 20, 2023.

Investors could be pardoned if they have whiplash, but the fact is that interest rates go through paradigm shifts. Indeed, they just migrated from a decade of ultra-low levels back to what may be a sustained period back “home” in their long-term 3-5% range. Just as investors never caught up with the 40-year secular decline in rates, the inverted curve could be with us for some time, leaving a boon for yield-curve strategies. Furthermore, with the vast majority of rate hikes behind us, market volatility is set to fall. A re-emergence of the “search for yield” is likely to follow, providing a tail wind for spread product and further boosting returns. These newly restored higher yields should fuel a continuation of the bull market that began in Q4 2022, one driven not by a rapid drop in yields, but simply driven by yield itself. After all, in bonds, yield is nearly destiny. Learn more in this episode of All the Credit®, featuring Robert Tipp, CFA, Chief Investment Strategist and Head of Global Bonds, and hosted by Tom Porcelli, Chief U.S. Economist, and Mike Collins, CFA, Senior Portfolio Manager, Multi-Sector Strategies. Recorded on September 20, 2023.