Reach for Yield Is Back in Vogue, PGIM's Collins Says

The transcript discusses recent trends in the credit market, highlighting the strong performance of high yield bonds compared to investment grade bonds. It explores the global demand for income, driven by low interest rates in regions like Japan and Europe. The discussion also covers opportunities in floating rate issuances and the impact of market dynamics on risk management. The role of the Federal Reserve and the potential for building balanced portfolios are also examined.

What was a significant factor in the high yield market's rebound in January?

• Increased defaults in the market

• Global demand for income

• Rising interest rates

• Decreased investment in emerging markets

Why is the reach for yield back in vogue according to the discussion?

• Rising commodity prices

• Increased corporate earnings

• Low interest rates globally

• High inflation rates

What is causing spread compression in Europe?

• Rising interest rates

• Decreasing demand for bonds

• Bidding wars for bonds

• High inflation rates

What was a key change in the market dynamics discussed in the third section?

• Decreased demand for investment grade bonds

• The dollar's role as a hedge

• Increased defaults in high yield

• Rising interest rates in the US

How did the Federal Reserve's policies impact investment strategies?

• By reducing the need for duration in portfolios

• By allowing for more balanced portfolios

• By making the dollar a less attractive hedge

• By increasing interest rates significantly