PGIM Fixed Income: Credit where credit analysis is due

Why examining markets is critical to navigating economic damage

clock • 4 min read

The breadth of the economic shutdowns to contain the spread of the coronavirus will affect nearly every sector across the global corporate universe, writes the PGIM Fixed Income team.

Therefore, credit selection will be paramount to generating positive alpha.  In tackling a solvency and liquidity analysis across various global industries, the PGIM Fixed Income credit research team of more than 100 analysts started with the following base case assumptions: two quarters of negative growth in Q2 and Q3, and 12 weeks of a work from home/shelter in place environment - with most commercial locations closed except for essential goods and services. The closures could imply a prolonged period of very little or no revenue for the most affected credits, which could also exper...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Global

Fund managers more bullish on global growth following Trump win

Fund managers more bullish on global growth following Trump win

BofA Global Fund Manager survey

Beth Brearley
clock 14 November 2024 • 1 min read
21st Federal Reserve vice-chair Richard Clarida on Trump, the US election and the 2% inflation target

21st Federal Reserve vice-chair Richard Clarida on Trump, the US election and the 2% inflation target

Q&A with Pimco's global economic adviser

Linus Uhlig
clock 05 November 2024 • 5 min read
AJ Bell's James Flintoft: Negativity on China has become excessive

AJ Bell's James Flintoft: Negativity on China has become excessive

Increase in appetite for Chinese equities

James Flintoft
clock 22 October 2024 • 3 min read
Trustpilot