Rethinking public and private credit

PGIM argues that as public and private credit increasingly converge, investors need to rethink how they build diversified portfolios to meet their risk and return goals. “Investors of all stripes are no longer limited to choosing between public or private assets,” the asset manager notes, highlighting that agility is now essential for both managers and investors in an evolving market.

PGIM believes that those who can adapt to converging credit markets, spot new opportunities, and apply flexible investment and risk management strategies will be best positioned for long-term success. As the firm puts it, “the winners and losers in the era of credit convergence may be differentiated by how well they can assess credit, legal, regulatory and operational risks—and pair this knowledge with a robust technology platform and big data.”

Read the full report here.