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PGIM Fixed Income examines the two competing schools of thought following the historic summit

June 14, 2018

The historic summit between the U.S. and North Korean leaders in Singapore ended with impressive imagery; however, the joint statement by President Trump and Chairman Kim Jong Un seemed short on details. In “Looking Ahead After the U.S.-North Korea Summit,” Gerwin Bell, Ph.D., lead economist for Asia on PGIM Fixed Income’s Global Macroeconomic Research Team, and Mehill Marku, portfolio manager for PGIM Fixed Income’s Foreign Exchange Team, examine two competing schools of thought concerning how the delicate relationship between the two countries may evolve.

While North Korea has committed “to work toward complete denuclearization of the Korean Peninsula,” and President Trump has pledged “to provide security guarantees to the DPRK,” the Singapore summit’s success or failure depends critically on North Korea’s willingness to outline concrete details about its denuclearization. According to Bell and Marku, the speed with which both countries resolve these details will likely hinge on the maintenance of robust U.N. sanctions as well as the nature and sequence of the U.S. response on concessions.

For PGIM Fixed Income’s full analysis, read “Looking Ahead After the U.S.-North Korea Summit” under Featured Thought Leadership on

For media interested in speaking to a PGIM Fixed Income subject matter expert about the implications of the historic summit for investors, please contact Claire Currie.