Fixed Income Opportunities
- 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?
Managing Corporate Bond Event Risk
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.
A Puzzle in Portuguese
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.
Measuring and Managing Emerging Markets Fixed Income Risk
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.
Focus on Local Market Opportunities
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.
U.S. Bank Debt: Uncovering Hidden Value
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.
The Case for Short-Maturity, Higher Quality High Yield Bonds
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.
Questions You Should Be Asking About Senior Secured Loans
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.
Emerging Markets Corporate Debt: Opportunities in a Large and Maturing Asset Class
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.
Short Maturity High Yield Bonds: Market Segmentation Creates a Timely Opportunity
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.
Build America Bonds One Year Later: High Quality in Long Maturities
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.
Emerging Markets and the New World Order
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.
Are There Any Opportunities Left in Credit?
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.