- Macro Economic Perspectives
- Fixed Income Opportunities
- Liability Driven Investing
- Interest Rates
Fixed Income Opportunities
- Adjusting to a World of Surplus Crude
- Portable Alpha 2.0
- Back to the Futures
- Why Global Loans?
- A Closer Look At Calls
- Emerging Markets Debt Under the Covers
- Option Modeling for Leveraged Finance Part I
- Questions and Answers About Senior Secured Loans
- Absolute Return Fixed Income Strategies: What, How, and Why Now?
- Managing Corporate Bond Event Risk
- A Puzzle in Portuguese
- Measuring and Managing Emerging Markets Fixed Income Risk
- Focus on Local Market Opportunities
- U.S. Bank Debt: Uncovering Hidden Value
- The Case for Short-Maturity, Higher Quality High Yield Bonds
- Questions You Should Be Asking About Senior Secured Loans
- Emerging Markets Corporate Debt: Opportunities in a Large and Maturing Asset Class
- Short Maturity High Yield Bonds: Market Segmentation Creates a Timely Opportunity
- Build America Bonds One Year Later: High Quality in Long Maturities
- Emerging Markets and the New World Order
- Are There Any Opportunities Left in Credit?
Brian Barnhurst, CFA, Principal, High Yield Credit Analyst and David Winans, Principal, Investment Grade Corporate Bond Analyst, Prudential 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, Prudential 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.
Michael Collins, Managing Director and Senior Investment Officer, Prudential Fixed Income, June 2014
U.S. Treasury futures are tools that can be used by portfolio managers to help manage interest rate and yield curve risk and to facilitate relative value trading. When used properly within a risk-controlled framework, futures can offer greater relative value, cost efficiency, and more efficient execution than physical securities.
Jonathan Butler, Managing Director and Head of European Leveraged Finance, Prudential Fixed Income, March 2014
In this thought paper, Jonathan Butler explains the variations that exist throughout the global loan market and how they may provide relative stability and more, particularly for investors wary of interest rate volatility.
Paul Appleby, CFA Managing Director and Head of Leveraged Finance Group, Prudential Fixed Income, January 2014
This paper discusses how an enhanced option model can improve relative value analysis within the leveraged finance markets. In this second paper of a two part series, portfolio manager Paul Appleby discusses why the model has become more relevant in the current environment.
Arvind Rajan, Managing Director and International Chief Investment Officer, Prudential Fixed Income, September 2013
Emerging Markets Debt continues to be the subject of a binary debate with Bulls pointing to the sector's enhanced resiliency following the secular strengthening in credit fundamentals, and Bears focused on the 2013 volatility that rattled the emerging markets. In this white paper, written in a Q&A format, we raise several global themes and draw their implications for EM Debt.
Bjorn Flesaker, Managing Director and Head of Quantitative Research, Prudential Fixed Income, September 2013
Although high yield bonds and bank loans can provide attractive yields, one must properly account for the additional credit risk borne by the investor. This task becomes even more complex when the bond or bank loan is callable. This paper is the first of a two-part series that looks at the model we developed to appropriately value these securities.
Joe Lemanowicz, Managing Director and Head of U.S. Senior Secured Loan Team, Prudential Fixed Income, August 2013
U.S. senior secured loans ('senior loans') continue to receive a lot of attention from investors seeking higher yields and protection against rising interest rates. The following Q&A is designed to answer some of the questions we have been receiving from investors regarding the asset class.
Robert Tipp, Chief Investment Strategist, Prudential Fixed Income, and Michael J. Collins, Senior Investment Officer and Credit Strategist, Prudential Fixed Income, June 2013
Robert Tipp, Chief Investment Strategist, and Michael Collins, Senior Investment Officer and Portfolio Manager, discuss how a well-diversified, duration-constrained absolute return portfolio can take advantage of the alpha opportunities available in today's market environment while avoiding exposure to rising interest rates.
Temple Houston, Head of Investment Grade Corporate Bond Research, Prudential Fixed Income, April 2013
A look at the economic and market factors driving the recent rise in adverse event risk in the US industrial corporate bond sector, and a review of the steps that fixed income investors can take to manage the potential negative impact to their bond portfolios.
Arvind Rajan, Managing Director and International Chief Investment Officer, Prudential Fixed Income, April 2013
From 1900 to 1980 Brazil was one of the world's fastest growing economies, but for roughly the past three decades the country has had to overcome a string of crises to arrive at its present state—a tantalizing mix of opportunity and challenges.
Arvind Rajan, Managing Director and International Chief Investment Officer, and
Martin Lawlor, Managing Director and Head of Risk Management for Prudential Fixed Income, September 2012
The emerging markets debt asset class has historically undergone many crises, and understanding its underlying risks is essential for any investor in hard currency sovereign and local market debt.
Cathy Hepworth, Portfolio Manager & Sovereign Strategist, Prudential Fixed Income, March 2012
Global growth and investment themes have driven capital flows into EM causing yields to converge toward those of developed, shifting EM local markets from volatile investments to long-term opportunities.
David Jiang, Senior Credit Analyst, Prudential Fixed Income, February 2012
After underperforming the corporate bond market in the second half of 2011, U.S. bank debt staged a rally in January 2012. We believe there continues to be hidden value in the debt of select U.S. banks.
Paul Appleby, CFA Managing Director and Head of Leveraged Finance Group, Prudential Fixed Income, January 2012
In this paper, we evaluate the benefits of the short-maturity, higher quality high yield bonds sector and explore the favorable fundamental and technical characteristics that lead to its attractive value proposition.
Joe Lemanowicz, Principal and Head of Senior Secured Loan Sector Team, Prudential Fixed Income, May 2011
Senior secured loans ("senior loans") have been receiving a lot of attention lately from investors seeking higher yields and protection against rising interest rates. This paper is designed to answer some of the more pressing investor questions.
Nick Ivanov, Senior Credit Research Analyst, Prudential Fixed Income, February 2011
Emerging markets corporate bonds represent a growing and opportunistic segment of the overall emerging markets debt universe. This paper takes a look at the evolution and characteristics of emerging markets corporate bonds and how they can add value to investors’ portfolios, either as a dedicated allocation or tactically in emerging markets debt, core plus, and other portfolios with credit exposure.
Michael J. Collins, Senior Investment Officer and Credit Strategist, Prudential Fixed Income, April 2010
It would be an understatement to say that high yield bonds have performed tremendously well since the credit crisis began to ease in late 2008. Some market observers believe that it is now too late to make an allocation to high yield bonds. While we acknowledge diminished opportunities in certain parts of the high yield market, higher quality high yield bonds in general still look attractive. In particular, market segmentation has created attractive relative value today in short maturity high yield bonds.
Susan Courtney, Head of the Municipal Bond Team, Prudential Fixed Income, April 2010
In February 2009, the U.S. Government authorized the Build America Bond program as part of the economic stimulus package. Build America Bonds have many of the same qualities as investment grade corporate bonds, but often trade at more generous spreads over U.S. Treasuries, making them good diversifiers in some portfolios. This paper introduces Build America Bonds in some detail, tracing their origins, the characteristics that make them attractive, and their role in the fixed income market today.
Cathy Hepworth, Emerging Markets Sovereign Strategist and Portfolio Manager,
Prudential Fixed Income, March 2010
Most emerging economies performed comparatively well during the global credit crisis of 2007-2009, with decades of hard-fought economic and political reforms finally paying off for many of them. This paper discusses the factors we believe have contributed to, and will continue to sustain, the outperformance of emerging economies in coming years.
Michael J. Collins, Senior Investment Officer and Credit Strategist, Prudential Fixed Income, November 2009
For most of 2009, U.S. credit spreads narrowed dramatically, helped by stimulative government policies as well as forward-looking investors with returning risk appetites. The rally left some investors wondering if there were any opportunities left in credit. This paper suggests that there are, and discusses four segments of the U.S. bond market that look particularly attractive.