78: Opportunity or Risk? The World of Fixed Income With Greg Peters, Co-CIO of PGIM Fixed Income

Money Maze Podcast

Business, Investing, Management, News, Business News

4.8 • 216 Ratings

🗓️ 27 October 2022

⏱️ 45 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

In Shakespeare’s Hamlet, Polonius counsels his son Laertes, exclaiming: “Neither a borrower nor a lender be; for loan oft loses both itself and friend”. If you’ve been a fixed income investor this year, you are nursing your wounds and might have wished you heeded this advice!

At a global level we’ve seen over a decade of nominal bond returns wiped out for the first time since the early 1950s. Therefore this seems a good time to discuss fixed income, and to do so with PGIM Fixed Income, who manage $790 billion in bonds (as of 30/06/22).

Greg explains his perspective of the flaws in the 60/40 model, before reviewing the question of whether and where the bond rout has created opportunity across the spectrum. He discusses government, corporate credit, emerging market debt, and index-linked bonds.

He describes why the Fed may remain more hawkish than consensus believes, why restoring “yield” is a good thing, and explains how active fixed income management has delivered more consistent outperformance versus benchmarks (unlike the world of equity management!).

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The Money Maze Podcast is kindly sponsored by Schroders, Bremont Watches, LiveTrade and Mintus.

DISCLAIMER: The Money Maze Podcast covers views, opinions and recommendations of other investment managers which may not represent the views of PGIM. The views expressed by PGIM is not intended to constitute investment advice, were accurate at the time of recording and are subject to change.

Transcript

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0:57.3	Thank you for listening.
1:01.0	We're delighted to have Schroeder's as a sponsor and corporate partner.
1:05.5	Schroeder is a global investment manager
1:07.6	whose purpose is to provide excellent investment performance through active
1:11.8	decision-making. For more than two centuries, Schroeder's has evolved their understanding of
1:16.3	markets, offering investment solutions across fixed income, equities, multi-asset, as well as private
1:22.5	markets through Schroeder's capital. Schroeder's actively invests in companies with
1:27.0	responsible and durable
1:28.2	business models. They're also a leading specialist in impact investing for clients who want to
1:33.1	maximize positive change. Capital is at risk with investing.
1:37.9	Bromont is also a sponsor of the Money Maze podcast. Bramont is a British company based in Henley that was established 20 years ago by two young
1:46.8	brothers whose dream was to design and engineer beautiful chronometers.
1:52.0	When Giles English, one of those brothers appeared as a guest on the Money Mays podcast last
1:56.7	year, he brought to life the wonderful history of British watch baking, helping to explain why the
2:02.5	world sets its time by Greenwich Mean Time, and he captured the incredible challenge of mastering
	...

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