PGIM Short-Term Corporate Bond Fund Q3 2025 Commentary
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PGIM Investments37 FollowersFollow5ShareSavePlay(11min)CommentsSummaryIn Q3, front-end yields on the U.S. Treasury curve fell as investors continued to anticipate stagflationary effects from both tariffs and fiscal policy.The Fund outperformed its benchmark, the Bloomberg 1-5 Year US Credit Index, gross of fees.The key risk lies in an overheating U.S. economy fueled by a more dovish Fed, alongside looser fiscal policy.From a positioning standpoint, with valuations quickly approaching rich levels, we favor carry and idiosyncratic opportunities.We are generally positioned overweight in shorter maturity BBB-rated bonds, where we find the carry attractive. Andranik Hakobyan/iStock via Getty Images Market Review In Q3, front-end yields on the U.S. Treasury curve fell as investors continued to anticipate stagflationary effects from both tariffs and fiscal policy. U.S. investment grade corporates posted positive total and excess returns, supported by strong demand This article was written byPGIM Investments37 FollowersFollowPGIM Investments, a subsidiary of PFI, is an investment adviser and the investment manager to all PGIM US open-end investment companies and manager or administrator to closed-end investment companies. Note: This account is not managed or monitored by PGIM Investments, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use PGIM Investments' official channels.