After a half year of ongoing global uncertainty, investors continue to find varied—and perhaps mixed—metaphors to explain the evolving fixed income landscape.
This edition of PGIM Fixed Income’s Quarterly Outlook opens with "Q2 Showers to Bring More Rain or Flowers?” by Robert Tipp, CFA, chief investment strategist and head of Global Bonds. Tipp looks at short-term factors that may be supporting the U.S. dollar, the recent divergence in developed market rates, and how conditions might unfold in the spread sectors over the second half of 2018.
In “‘It’s Only a Flesh Wound’—The Global Expansion Continues,” Nathan Sheets, Ph.D., chief economist and head of Global Macroeconomic Research, and the PGIM Fixed Income economics team cover some of the concerns that may have dented investors’ enthusiasm in recent months. Despite concerns about global trade skirmishes, declining central bank liquidity, and pockets of EM volatility, they find that support for the ongoing economic expansion largely remains intact.
One of the uncertainties facing the emerging markets sector has come from the political front, and in “What Elections in Select EM Countries Are Telling Us,” our macroeconomics and EM portfolio management teams analyze the recent political results in Turkey and Mexico, while setting the stage for the upcoming Brazilian elections in October 2018.
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.