Enter the golden age of credit (yes, really)

PGIM Fixed Income’s Gregory Peters, head of multi-sector and strategy at PGIM Fixed Income and manager of the PGIM Absolute Return fund, outlines the events and factors leading up to what he believes is a new era, The Golden Age of Credit.

During the depths of the March market meltdown, and as global central banks and fiscal authorities aggressively entered the fray, we saw the dawn of what we at PGIM Fixed Income believe to be "The Golden Age of Credit." Decimated credit valuations, coupled with the belief that companies will be forced to finally prioritise debtholders, created a highly attractive entry point. Over the second quarter of 2020, fiscal and monetary stimulus surprised to the upside, global economies started to reopen, corporate issuance soared, stock indices skyrocketed, and spreads rallied furiously. This all b...