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October 12, 2018

When investors recall the third quarter of 2018, many may cite the fractures that occurred in certain corners of the fixed income market. In its fourth-quarter outlook, PGIM Fixed Income evaluates the extent of the damage, the factors that contributed to the periodic volatility, how these issues may unfold going forward, and the nature of the opportunities that lie ahead.

In addition to sector outlooks, Robert Tipp, chief investment strategist and head of global bonds, looks at conditions across several major asset classes. Given the current backdrop, Tipp indicates that maintaining a relative-value perspective may reveal opportunities from sector allocation, yield curve positioning as well as issuer and currency selection. 

And Nathan Sheets, chief economist and head of Macroeconomic Research, with PGIM Fixed Income’s macroeconomics team, isolate two key factors—the persistent pressure across the emerging markets and the escalating trade war—that have contributed to the fraying of synchronized, global growth. The piece subsequently examines how these global issues might evolve as 2019 approaches.

Sheets also reviews the steps in the trade war thus far, the next potential moves that each side might take, and how each country’s economic growth could be affected.

Visit PGIM Fixed Income’s Thought Leadership page to read the full outlook and other market views.

For a media interview with a PGIM Fixed Income expert, please contact Claire Currie.