High Yield
Highly diversified, research-driven strategy targeting an excess return over a broad market High Yield Bond Index or similar benchmark. Strategy emphasises the "higher quality" segment of the high yield market—BB and B rated corporate bonds—with heavy emphasis on default avoidance. Strategy seeks to generate two-thirds of its excess return from individual security selection and one-third from industry allocation. This strategy can be managed in a U.S., European, or Global mandate. This strategy can also be managed in a broad market mandate with greater allocation to CCC rated bonds in addition to BB and B rated bonds.
Objective and Approach
- Highly diversified, intensively researched (approximately 150 issuers)
- A team with a credit culture, that understands underlying credit fundamentals
- Higher quality high yield focus
- Generally no oversised sector/issuer bets
- Emphasis on seeking to avoid defaults
A High Quality, Conservative Approach to High Yield
- Focus on goal of limiting downside risk
- A "pure" asset class approach
- A disciplined investment process using relative value based approach
- A comprehensive risk management infrastructure
A Strong, Stable, Well Resourced Management Team
- Experience and continuity—team averages [an error occurred while processing this directive] years with PFI
- A credit culture
- [an error occurred while processing this directive] credit analysts organised by industry with [an error occurred while processing this directive] leveraged finance credit research analysts in US and Europe
As of [an error occurred while processing this directive]. ¹European team members are employees of an indirect subsidiary of PGIM, Inc., who have been seconded to PGIM Limited, a UK subsidiary that is authorised and regulated by the Financial Conduct Authority.
Contact a representative for more information on this strategy.
- [an error occurred while processing this directive]-member leveraged finance portfolio management team averaging [an error occurred while processing this directive] years experience¹
- [an error occurred while processing this directive] high yield analysts with senior members averaging [an error occurred while processing this directive] years experience¹