Allocating to attractive income and resilience

Credit spreads remain tight despite deteriorating credit quality and ongoing economic uncertainty. As a result, investors receive little extra yield for risks related to corporate bonds. Where might investors find a more attractive balance of risk and reward? “Right now, in my opinion, is a great time to look at the CLO market,” says PGIM’s Edwin Wilches. Wilches co-leads PGIM’s $138 billion securitised products team. With deep experience in the market for collateralized loan obligations, or CLOs, he now enjoys a front-row seat as the asset class expands beyond its institutional roots thanks...