Longer time horizons naturally have a wider window of uncertainty; the more time, the more opportunity for foreseen and unforeseen risks to jump into the picture. However, at this juncture, our perception of time and risk is flipped. Given the fraught U.S. elections, the unpredictable path of the coronavirus, and the uncertain effects from the flood of monetary and fiscal stimulus, we see more uncertainty in the near term than we do in the long term. Longer term, we believe improving credit fundamentals and investors’ ongoing search for yield will provide fruitful results across several of the fixed income credit sectors.
You can read PGIM Fixed income fourth quarter market outlook here.
