PGIM Total Return Bond Fund Q4 2025 Commentary

PGIM Investments42 FollowersFollow5ShareSavePlay(26min)CommentsSummaryWe remain guardedly optimistic on entry into what stands to be year four of the “yield is destiny” bond bull market, where high yields result in solid returns.The Fund outperformed its benchmark, the Bloomberg U.S.

Aggregate Bond Index, on a gross basis.Overall security selection was the largest contributor to returns during the period, with selection in U.S. investment grade corporates and U.S. high yield corporates contributing the most.Overall sector allocation also contributed to performance, with overweights to the emerging-market high yield and CLO AAA sectors contributing the most.The trend of compressing credit spreads should generally continue, albeit more modestly given the tight spread levels. Arron Jones/iStock via Getty Images Market Review With 2026 underway, a few factors are readily apparent across the global fixed income markets: the slow-going bull market remains in the sweet spot; attractive yield levels should continue to accrue into solid returns over This article was written byPGIM Investments42 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.